Industry News

Shell today announced that the wells have been opened at its Prelude Floating Liquefied Natural Gas (FLNG) facility located 475km north-north east of Broome in Western Australia.

Prelude now enters start-up, ramp-up, which is the initial phase of production where gas and condensate is produced and is moved through the facility. Once this has concluded the facility will be stabilised for reliable production of LPG and LNG.

The focus continues to be on providing a controlled environment to ensure Prelude will operate reliably and safely now, and in the future.

Read more here.

Today I have advised Ken Vowles that he has been dismissed from the Cabinet for breaking Cabinet confidentiality.

The Caucus has also dismissed Ken Vowles, Jeff Collins and Scott McConnell from the Caucus.

Ken Vowles, Jeff Collins and Scott McConnell were dismissed for breaking the Caucus values and standards signed up to at the beginning of our term.

When the Territory Labor Government was elected in 2016 we promised to put Territorians first by delivering jobs, putting kids at the centre of government and restoring trust.

Unity of purpose is vital to Government achieving these aims.

Territorians expect and deserve Government to be solely focussed on their concerns and making their lives better.

The Government has made these decisions because now more than ever the Territory cannot afford distractions from the challenging tasks at hand – to deliver jobs, to repair the budget, to deliver for Territorians in the bush and to create a brighter future for all Territorians.

Media Contact:

Maria Billias 0401 119 746

CHANGES to the Northern Territory’s petroleum regulatory regime, based on recommendations from the latest, wide-ranging scientific inquiry into fraccing come into effect today.

The regulations come into force as resources minister Ken Vowles makes his way to Adelaide in South Australia for the latest Council of Australian Government energy council meeting.  

The NT government claims the recommendations will ensure the consideration of cumulative impacts of fraccing; will require the publication of all notices and reports of environmental incidents, including reports about reportable incidents; provide transparency around proposed environmental management plans prior to  ministerial consideration and adopt Western Australian-style disclosure of all fraccing chemical use, plus flowback and produced water composition. 

"Among other things, the changes to regulations mean that, for the first time, Territorians have the opportunity to comment on environment management plans for the drilling of petroleum wells and hydraulic fracturing before they are considered by government," Vowles said today.  

The inquiry, led by Justice Rachael Pepper, was finalised in July and contained 135 recommendations, suggesting the direct environmental impacts of fraccing could be managed.

Source: Energy News Bulletin

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ADELAIDE oiler Santos has received a grant from the Federal government-backed Australian Renewable Energy Agency to transition to 100% renewable energy for its oil well operations in the Cooper Basin as part of the Advancing Renewables Program. 

he project will convert all beam pumps at 56 sites to solar and batteries at a cost of A$16 million, with ARENA stumping up 25% of that.  

A single, pilot solar beam pump has been in operation since August and Santos says this expansion will provide "adequate scale to achieve supply chain and execution synergies and trial multiple vendors to reduce unit costs".  

Santos managing director Kevin Gallagher said the "Australian first" arose from an idea from the company's energy solutions team, which is "dedicated to finding innovative ways to prepare the business for a lower-carbon future".  

"The solar beam pump will reduce emissions and waste from oil production, saving 140 barrels of oil per day which is required to fuel the pumps, and instead will be sold for beneficial use," Gallagher said.  

"Our own consumption of fuel in the Cooper Basin is equivalent to about 5% of east coast domestic gas demand, so if we can extend our use of renewables to our gas operations, we can also free up more natural gas for sale, which is a good way to put downward pressure on gas prices. 

"The solar beam pump is also a perfect demonstration of Santos' strategy to become Australia's safest, lowest cost onshore operator in action."

He said renewables' use would also cut the costs of transporting fuel long distances by road to its remote well locations. 

Source: Energy News Bulletin

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Progressing the implementation of the recommendations from the Scientific Inquiry into Hydraulic Fracturing in the NT

The past two months has seen extensive legislative changes made to strengthen onshore gas regulation, with further recommendations from the Scientific Inquiry into Hydraulic Fracturing in the Northern Territory coming into effect.

A strengthened regulatory regime will ensure robust decision making by the government and provide Industry with certainty to inform their future work plans. Further regulatory changes are progressing and will be introduced to the house in the coming months.

Read full bulletin here.

Minister for Primary Industry and Resources, Ken Vowles, is in Adelaide to attend the inaugural dedicated COAG Resources meeting and the COAG Energy Council.

Yesterday’s Resources Ministers meeting progressed the coordinated growth and development of Australia’s resources sector. Competitiveness, exploration, innovation, communities and workforce were all on the agenda, along with a minerals strategy.

This strategy is in line with the Territory Labor Government’s approach to developing our resources sector through the Resourcing the Territory initiative.

Among other subjects, today’s COAG Energy Council will discuss a national plan for hydrogen, an industry the Territory is well-placed to be part of.  

The Territory is playing a growing role in the nation’s energy security - with the Northern Gas Pipeline completed last week - and the potential of the Beetaloo Basin means the NT is well-positioned to produce gas not only for national energy security and export, but also for more jobs and manufacturing in the Territory.

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

“The Territory Labor Government is focused on creating local jobs, and at COAG I am delivering the message loud and clear – we have the resources that are in worldwide demand and we have the capacity to deliver on major projects.

“The $800 million Northern Gas Pipeline injected millions of dollars into the Tennant Creek region, creating opportunities for local contractors and hundreds of jobs.

“Along with the recent completion of Inpex, this project proved the Territory can deliver when it comes to projects of national and international importance.

“We have invested $26 million over four years in our Resourcing the Territory initiative to develop our minerals sector, and we have the raw materials to take part in a hydrogen industry. The future of the Territory’s resources industry is bright.”

Media Contact: Leanne Hudson 0427 687 079

The Territory Labor Government is increasing the level of transparency around onshore petroleum activity, with changes to the Petroleum (Environment) Regulations coming into effect today.

The changes implement recommendations made in the Final Report of the independent Scientific Inquiry into Hydraulic Fracturing.

The changes:

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

“The Territory Labor Government accepted all 135 recommendations from the independent Scientific Inquiry into Hydraulic Fracturing to develop a transparent, accountable onshore gas industry that will create jobs for Territorians while protecting our environment.

“Among other things, the changes to regulations mean that, for the first time, Territorians have the opportunity to comment on Environment Management Plans for the drilling of petroleum wells and hydraulic fracturing before they are considered by Government.

“The changes also mean operators must now provide more detailed information about their activities, and that information will be made available to the public.

“We are developing the onshore gas industry based on science and in a way that will maximise the benefits and opportunities available to local businesses and communities.”  

Media Contact: Leanne Hudson 0427 687 079

Minister for Primary Industry and Resources, Ken Vowles, and Assistant Minister for Primary Industry and Resources, Jeff Collins, are in Tennant Creek today to attend a ceremony at Jemena’s Phillip Creek Compressor Station to mark the completion of construction of the Northern Gas Pipeline (NGP).

The NT Government awarded Jemena the tender to build, own and operate the NGP, and the $800m, 622km pipeline runs from Tennant Creek to Mount Isa, linking to the Amadeus Gas Pipeline and Carpentaria Pipeline.

The NGP has created more than 1,100 hundred jobs in total, and seen Territory contractors share in $52 million of investment, including 11 contracts awarded to Territory Aboriginal businesses.

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

“The Territory Labor Government is developing our resources sector in a safe and sustainable manner, and focused on Tennant Creek as a mining services hub.

“We are creating jobs – which is our number one priority - and supporting local business by becoming a hub for gas production, export, innovation, manufacturing and services.

“The completion of the construction of the NGP shows Territory workers and businesses can deliver on major gas projects, and the NT Government can work through the necessary permit processes complex projects such as this require.

“It also means the Territory is contributing to national energy security, which is in the NT Government’s Five Point NT Gas Strategy.

“Importantly, the construction of the NGP has boosted investment and development in the Tennant Creek region, with many local contractors and workers benefiting.”

Quotes from Jemena Managing Director, Frank Tudor:

“Today we have taken a significant step towards ensuring Australian homes and businesses have the gas they need, when they need it.

“We know that the Northern Territory has enough gas to meet Australia’s future supply needs for the next 200 years or more.”

Media Contact: Leanne Hudson 0427 687 079

 

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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

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