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THE Gas Sale Agreement between Central Petroleum and its partner fertiliser maker Incitec Pivot will begin between December 29 and January 10 reflecting when Jemena’s  Northern Gas Pipeline is expected to be up and running. 

Central says it is already selling commissioning gas to Jemena and it expects sales to rise as the date for NGP start up comes closer.  

The Mereenie facility upgrade and Palm Valley restart projects have been brought online.

All key processing and production equipment is installed and running except for the new field boost compressor at Mereenie that has been installed and is being tested.  

"This is an outstanding result given these projects were fast-tracked to maximise gas sales through the NGP," Central said.  

The Mereenie upgrade was delivered just eight months after ordering long lead items, and was commissioned three months earlier than the draft initial schedule, meaning more gas will be sold in the financial year.  

When complete Mereenie will be able to deliver 44 terajoules a day of sales gas on a firm basis. The Palm Valley facility currently has 15TJpd of sales gas capacity via three wells already online and one more to be on production soon. 

Source: Energy News Bulletin

Read more here.

Santos today announced first gas from the third and final well of the Bayu Undan infill well program, and delivery of the whole project under budget and ahead of schedule.

A final investment decision was made in January last year as part of the long-term development plan for the Bayu Undan gas/condensate project, located in the Timor Sea.  The drilling program consisted of two platform wells and one subsea well connecting into existing offshore infrastructure.      

Santos Managing Director and Chief Executive Officer Kevin Gallagher said: “This drilling campaign has been very successful, providing strong subsurface results, with the whole project having been executed approximately 40% below budget and the final well brought on-line over three months ahead of schedule.”

“The program’s success means that we have delivered higher liquids production and increased offshore well capacity. Operator ConocoPhillips has done an excellent job in executing such an efficient drilling program,” Mr Gallagher said.

The wells were drilled with the Noble Tom Prosser rig, which has now been contracted by Santos to undertake a 2019 drilling program, including appraisal of the recent Dorado oil discovery offshore Western Australia.

Santos holds an 11.5% interest in the Bayu Undan joint venture and the Darwin LNG plant, both operated by ConocoPhillips.

Santos also has a 25% interest in the Barossa joint venture. The Barossa gas field is currently in front end engineering and design and is the leading candidate to backfill Darwin LNG when Bayu Undan production ceases. Barossa would more than double Santos’ production in Northern Australia with a final investment decision targeted for late 2019.

Read more here.

A strengthened regulatory regime for the onshore gas industry

The Northern Territory Government is committed to developing a transparent, accountable onshore gas industry that will create jobs for Territorians while protecting our environment.

With indications that the shale gas reservoirs in the Beetaloo Sub-basin are of global significance, it is important that we enable this substantial industry to expand in a well-regulated and planned manner from the outset. Two legislative amendment bills were passed in Parliament last week. This is in response to government’s commitment to implement all of the recommendations outlined in the Final Report from the Scientific Inquiry into Hydraulic Fracturing in the Northern Territory.

Read full bulletin here

Two companies, Origin and Santos, have received approval to install up to two groundwater monitoring bores near potential exploration sites in the Beetaloo Sub-Basin.

The approval is in line with recommendation 7.11 of the Independent Scientific Inquiry into Hydraulic Fracturing, which requires the collection of six months of baseline groundwater data in preparation for future activities at these sites.

The companies will be required to provide laboratory reports to the NT Government and the data will be published online.

The Environment Management Plans for the groundwater monitoring bores are available on the Department of Primary Industry and Resources website at www.dpir.nt.gov.au/mining-and-energy/public-environmental-reports/reports-for-petroleum-operational-activities

Approval has not been sought or given for any petroleum well drilling or hydraulic fracturing activity.

In line with another recommendation from the Inquiry (14.27), an Onshore Gas Non-Compliance Hotline has also been established as a way for people to report potential non-compliance of the onshore gas industry in the Territory.

The 24-hour toll-free hotline number is 1800 413 889. Calls can be made anonymously.

Quotes from the Minister for Primary Industry and Resources, Ken Vowles:

“The Territory Labor Government has a clear plan to protect our environment, create local jobs and ensure the actions of Government and industry are transparent and accountable. 

“Territorians can be assured our Government is faithfully implementing all of the 135 recommendations of the Independent Scientific Inquiry into Hydraulic Fracturing.

“This water monitoring forms part of just one of those recommendations and will allow the water to be tested for key water quality indicators prior to any exploration approvals for hydraulic fracturing being given.

“The results from this monitoring will build on a range of environmental baseline data being collected as part of implementing the 135 recommendations, including methane monitoring and regional groundwater monitoring being undertaken by CSIRO/GISERA.”

 Media Contact: Leanne Hudson 0427 687 079

Shell Australia welcomes Rob Jager to Perth as the new VP Prelude, taking the reins from David Bird who will be finishing his assignment on 30 November 2018. Rob moves to Perth from New Zealand, where he was the Country Chair & VP for Shell New Zealand / Shell Taranaki for more than 13 years. Shell announced the sale of its New Zealand interests in March 2018.

"It is a privilege to join Shell Australia and lead Prelude to successfully deliver gas to our customers across the globe. My focus will be the safe start-up and reliable operations of Prelude in the years to come” he said.

David Bird has been leading Prelude since 2015. He said that he has seen Prelude shift from a project under construction in Geoje, South Korea, to a facility safely moored offshore and being commissioned.

“To see Prelude now moored off the coast and being commissioned gives me a great buzz” he said.

“Thank you to the extremely motivated team both within Shell and across our partnerships, contractors and community. It has been a pleasure working with you all. I leave Prelude in Rob’s very safe and experienced hands and will continue to watch with interest as Prelude moves into its next phase of steady operations”.

Read more here.

Darwin, Australia – The Prime Ministers of Japan and Australia last night joined celebrations in Darwin marking the official opening of the INPEX-operated Ichthys LNG facilities.

The two national leaders, His Excellency Mr Shinzo Abe and the Hon. Scott Morrison MP, congratulated INPEX on its historic milestone at a gala dinner at the Darwin Convention Centre.

INPEX President and CEO Takayuki Ueda said it was a tremendous honour to have two Prime Ministers speak at the INPEX celebration event.

“This is a remarkable global project that will provide lasting benefits to Australia and energy security to Japan for generations to come. It also signifies a new chapter in strengthened trading ties and relationships between Australia and Japan through Darwin, Australia’s gateway to Asia.”

The Ichthys LNG Project is the first large-scale LNG project to be operated by a Japanese company, and is the product of the largest foreign investment ever made by a Japanese company. At peak production, Ichthys will produce 8.9 million tons of LNG per year, of which approximately 70 percent will be supplied to Japanese customers.

Ichthys LNG Project commences LPG shipment

INPEX CORPORATION also announced yesterday that the Ichthys LNG Project commenced shipment of liquefied petroleum gas (LPG) from the onshore LNG processing facilities in Darwin. The first shipment of LPG is destined for Asia.

Ichthys LNG has already commenced shipment of condensate (ultra-light crude oil), that was announced on October 1, 2018, and of liquefied natural gas (LNG), announced on October 23, 2018. 

Read more here

Darwin, Australia – A landmark celebration has officially opened the onshore LNG processing facilities of INPEX-operated Ichthys LNG – one of the largest and most complex resource developments in the world.

Japanese, Australian and Northern Territory government representatives unveiled a plaque to commemorate four decades of future benefits Ichthys LNG will bring to the Northern Territory, Australia, Japan and the region.

Symbolising the collaboration inherent in global enterprises on the scale of Ichthys LNG, Mr Hiroshige Sekō, Japanese Minister of Economy, Trade and Industry, Senator the Hon. Simon Birmingham, Australian Minister for Trade, Tourism and Investment, Senator the Hon. Matthew Canavan, Australian Minister for Resources and Northern Australia and The Hon. Ken Vowles MLA, Northern Territory Minister of Primary Industry and Resources united to declare the site officially opened.

INPEX CEO, President and Representative Director, Mr Takayuki Ueda said today’s official opening was the culmination of a truly remarkable global enterprise over the last 20 years, and paid tribute to all involved.

“We are standing here today thanks to the contributions of tens of thousands of people drawn from many nations across the world.” Mr Ueda said.

“Ichthys LNG is an iconic project. We are very proud of the economic and social contributions INPEX and Ichthys LNG have made to date – along with 40 years of future operations that will provide lasting economic and social benefits for Australia and energy security for Japan.”

Approximately 70 per cent of the LNG produced by Ichthys LNG is scheduled to be supplied to Japanese customers. Ichthys LNG will help to meet growing energy demand in the region, while contributing to the Australian way of life. 

Read more here

Media release from the Chief Minister office: Follow this link for a press release regarding an MOU signed between the Northern Territory and Australian Governments that will help realise existing offshore gas reserves and the potential of the Beetaloo Sub-Basin as a new world-class gas province.

MOU NT Gas Industry (pdf 237 kb)

Darwin, Australia: INPEX, on behalf of Ichthys Joint Venture participants, is proud to announce the signing of a landmark $24 million benefits agreement with the Larrakia people in Darwin.

The 40-year agreement is considered the most significant long term package of benefits and opportunities provided outside of Native Title obligations.

The signing of the agreement marks the culmination of more than a decade of relationship building and collaboration between INPEX and the Larrakia people.

The INPEX Larrakia Advisory Committee, which includes representation from the Larrakia Development Corporation and Larrakia Nation Aboriginal Corporation, will oversee the distribution of benefits to Larrakia people. Initially, the focus is expected to be on education initiatives and on the support of the elderly members of the community.

INPEX Larrakia Advisory Committee Chairman Bill Risk said INPEX was the first company in the Northern Territory to engage Larrakia to undertake heritage surveys to ensure the protection of their cultural heritage for future generations.

“This is an agreement built on a foundation of trust and respect between INPEX and Larrakia,” Mr Risk said.

INPEX President Director Australia, Mr Seiya Ito, noted that the Japanese and Larrakia peoples share deep connections.

“We are both salt water people, we respect our Elders and we celebrate rich cultures in our daily lives,” Mr Ito said.

“Ichthys LNG has benefitted enormously from the support of the Larrakia people over many years. INPEX looks forward to building on our strong relationship with the Larrakia people for decades to come.”

INPEX, on behalf of the Ichthys Joint Venture already provides:  a scholarship program for Larrakia tertiary students to undertake studies at any university in Australia;  a funding program for primary and secondary Larrakia school students; and  an air conditioning program for Elders and people with disabilities.

Read media release here