Industry News

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

 

APPEA 2019 is bigger and better than ever before and covers the hottest topics facing the energy industry today. 

Download your conference program and register now for APPEA 2019

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