Industry News

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

RENEWABLES will account for 40% of global energy mix, more than individual fossil fuel energy sources, and Australia is in a prime position to leap ahead of the rest of the world and claim the crown of world’s largest hydrogen producer exporter according to the latest World Energy Outlook released from by the International Energy Agency.

The 2018 annual forecast revealed that renewables, including hydrogen produced from solar, will overtake coal and other fossil fuels by 2040 to account for more than 40% of the global energy mix under the IEA Sustainable Development Scenario.  

In power markets, renewables have become the technology of choice, making up almost two-thirds of global capacity additions to 2040, thanks to falling costs and supportive government policies. 

This is transforming the global power mix, with the share of renewables in generation rising to over 40% by 2040, from 25% today, even though coal remains the largest source and gas remains the second-largest. 

Over the last 12 months wind and solar alone accounted for nearly half of all new capacity.  

However it is hydrogen that the authority identified could potentially be one of Australia's biggest opportunities for expansion, if hydrogen infrastructure was developed in conjunction with solar and wind plants.  

According to the report, developed counties with a high level of resources could provide nearly 100 million tonnes of oil equivalent of hydrogen - which would be the same output as 3% of global gas consumption today.  

The authority's attention to hydrogen mirrors sentiments from Australia's chief scientist, Dr Alan Finkel, who says hydrogen exports could be a multi-billion dollar opportunity for Australia.  

The IEA used a Sustainable Development Scenario, which took into consideration changing government policies in response to the Paris Agreement and climate change reduction measures undertaken by world leaders in the development of the outlook.  

"Our analysis shows that over 70% of global energy investments will be government-driven and as such the message is clear; the world's energy destiny lies with government decisions," IEA executive director Dr Fatih Birol said.  

"Stable support policy frameworks help drive down costs, in turn providing for increasing policy support while maintaining energy affordability."

Read more here.

Source: Energy News Bulletin

Minister for Renewables and Essential Services Dale Wakefield today launched the new $8.3 million 5MW Alice Springs Battery Energy Storage System (BESS). 

The BESS will help to support cheaper and cleaner power for Territorians and is an important step forward in achieving the Territory Labor Government’s target of 50% renewable energy by 2030. 

The Government-owned Territory Generation’s new battery will provide reliable, secure, and cost-effective electricity supply for Territorians and for business. It is also one of the largest grid-connected storage solutions in Australia. 

During high solar penetration periods such as in the middle of the day, solar can currently supply up to 40% of the Alice Springs power needs. It is projected that BESS will support an increase of this supply up to 50%. 

Other features of the new 5MW battery include: 

•        Provide a near-instant response to variations in solar load, particularly during cloud cover, and it will improve power generation reliability for the region 

•        The system has a 5MW capacity, combined with 40 minutes of storage capability, and it is capable of flexing to 8MW for six seconds and 7.5MW for 60 seconds 

It is projected that the $8.3 million investment for the battery system will be recouped in four to five years due to efficiency improvements.

The battery system has already provided power into the grid through its rigorous testing and by the end of November it will be fully integrated into the Alice Springs power system.

Since the release of the Roadmap to Renewables Report some of the Territory Labor Government’s other key investments include:

• $40 million private sector investment in the Katherine Solar Farm project that will be the largest renewable energy generator in the Northern Territory. This solar project will increase renewable energy use in the Territory and provide enough power for 8,000 homes 

• $59 million joint investment with ARENA for the Solar SETuP program providing 10MW of solar across 25 remote communities. This program is nearing completion. It will also reduce diesel use and take trucks off the roads

• $4.5 million for co-contribution grants of up to $1000 for households to undertake energy efficiency measures such as installation of solar-photovoltaic (PV) systems, batteries, solar pool pumps, smart meters, efficient lighting, solar hot water, energy efficient appliances, and efficiency audits 

• $750,000 to Power and Water to develop and validate a dynamic system model which will ensure that increasing levels of renewable energy can be integrated into the grid in a stable and predictable way

Quotes from Minister for Renewables & Essential Services, Dale Wakefield 

“The Territory Labor Government’s number one priority is creating local jobs. Delivering 50% renewables by 2030 will deliver local jobs, and cheaper, cleaner power.

“We are investing in Alice Springs to achieve our renewable energy target and become the Solar Capital of Australia. The new Alice Springs Battery Energy Storage System is an important piece of infrastructure that will enable us to integrate more renewables, and provide increased reliability of supply to homes and businesses in Alice Springs.”

Quotes from Territory Generation CEO, Tim Duignan  

“Territory Generation’s Battery Energy Storage System will provide near-instantaneous response to changes in solar load, such as cloud cover.

“Reliability and stability of base load power is a critical barrier in the uptake of renewable energy across Australia, and I am pleased that we are at the forefront of tackling this issue right here in Alice Springs.  

“The cutting-edge technology in our Battery Energy Storage System will reinforce Alice Springs as the solar capital of Australia by enabling greater solar penetration and grid stability.”

Media Contact: Paige Nguyen 0428 727 244

Release of the first Hydraulic Fracturing Implementation Progress Report and Onshore Shale Gas Community and Business Reference Group update

The Community and Business Reference Group (Reference Group) held its second meeting in Darwin on 23 October 2018 to discuss the progress of implementing the recommendations from the the Scientific Inquiry into Hydraulic Fracturing in the Northern Territory, and to provide input into the approach for delivering the framework for the Strategic Regional Environmental Baseline Assessments (SREBAs).

Representatives from CSIRO and the Northern Territory Government gave a presentation relating to the approach to define framework for the SREBAs and the Reference Group participated in these discussions and provided feedback, noting that Reference Group member Tom Stockwell is the Reference Group representative on the SREBA Project Advisory Committee.

The Reference Group also considered the quarterly progress report outlining the status of implementing the recommendations as set out in the Implementation Plan. In developing the Implementation Plan each recommendation was grouped into one of six reform areas and grouped into three delivery timeframes:

 Stage One – Planning, completed at the end of July 2018;

 Stage Two – Preparing for exploration, with a target completion date of December 2018; and

 Stage Three – Exploration and Preparing for Production, with a target completion of December 2021

Read full bulletin here

THERE is a multibillion dollar potential in hydrogen exports to North Asia and Australia is well placed to take advantage of the demand, according to Australia’s chief scientist, Dr Alan Finkel, who spoke to Energy News on the sidelines of the Gas Technology Conference-14.

Gas know how will come in especially handy for future hydrogen exports, though LNG trains cannot be reconfigured to process the far colder hydrogen and shouldn't need to be given rising global LNG demand, he said.  

"The Japanese as part of their national strategy are looking at 10MMtpa per year 2020-2040 (at) US$2/kg," he said.  

"That's $20 billion per annum.  

"There is potential for South Korea to be an importer, we're talking a substantial industry here. We could be the major supplier to Japan. It's a non-trivial market." 

There is also domestic potential via pipe gas, and industrial uses, though hydrogen as an energy source in and of itself is unlikely.  

Australia isn't the only nation Japan is looking to; it is trialling varied technologies in Qatar, Norway, Saudi Arabia, Brunei and Chile but Australia's proximity and export history help. 

The LNG boom that began in 1979 with the first contract signed and in 1989 with the first shipment from the North West Shelf consortium could be replicated for hydrogen with more haste, he said.  

Eventually there will be the same sorts of contracts, company to company, supported by bilateral agreements, spot markets and a trading hub, Finkel said all similar to the rapidly evolving LNG market.  

There are multiple technical challenges with hydrogen compared with gas, and though the decades of Australian know how helps there are large differences in that the liquefaction temperature is far lower, over -250C compared with -160C, it cannot be compressed in the same way as gas at scale, and it is not a recoverable resource, but must be created, however "the logic is the same", Finkel said.

Source: Energy News Bulletin

Read more here.

Perth, Australia – INPEX CORPORATION (INPEX) today confirmed the first shipment of liquefied natural gas (LNG) has departed from the INPEX-operated Ichthys LNG Project at its onshore gas liquefaction plant in Darwin, Northern Territory.

The first LNG shipment is destined for the INPEX-operated Naoetsu LNG terminal in Niigata Prefecture in Japan.

“First cargo from Ichthys LNG is a historic moment for INPEX, Japan and Australia. It demonstrates our commitment to being a safe, reliable long-term energy supplier,” said INPEX President Director Australia, Seiya Ito.

“Ichthys is an iconic project for Australia. With an operating life of around 40 years, Ichthys LNG will be delivering benefits to the Australian economy and community for decades to come.”

Ichthys is scheduled to gradually increase its production volume of LNG to approximately 8.9 million tonnes of LNG per year when it reaches its production plateau – this is equivalent to more than 10 per cent of Japan’s annual LNG import volume.

Approximately 70 per cent of the LNG produced by Ichthys LNG is scheduled to be supplied to Japanese customers, further contributing to the stable supply of energy to Japan and helping to meet energy demand in Asia and the rest of the world.

The departure of the LNG cargo follows the Project’s shipment of field condensate (ultra-light crude oil), which commenced on 1 October 2018, as announced on the same day.

The Project is also scheduled to commence the shipment of liquefied petroleum gas (LPG) later this year.

INPEX will continue to work toward achieving stable production and an early ramp-up at the Ichthys LNG Project with the understanding and cooperation of all its stakeholders, including Ichthys Joint Venture participants, the local communities, the Australian federal government and the governments of Western Australia and the Northern Territory.

Read more here

Onshore Shale Gas Community and Business Reference Group update

The Onshore Shale Gas Community and Business Reference Group provides direct feedback and advice to the Hydraulic Fracturing Inquiry Implementation Taskforce in the Department of The Chief Minister. The Reference Group is essential to ensure stakeholders have oversight and input into the development of the implementation framework and its subsequent execution.

The Community and Business Reference Group will meet on Tuesday 23 October. The Agenda can be viewed here

The second meeting of the Reference Group will focus on the design of the Strategic Regional and Environmental Baseline Assessments and the planned changes to the Regulatory Model to make the Minster for the Environment and Natural Resources the responsible Minister for decisions relating to the Petroleum (Environment) Regulations under the Petroleum Act.

Community and Business Reference Group members bring a diversity of skills from the community, environmental groups, local business, the gas industry and local Government. The Members are:

• Mr Denys Stedman (Chair) – Buy Local Advocate

• Mr Tom Stockwell – former President, Northern Territory Cattlemen's Association

• Mr Bobby Nunggumajbarr – Chairman, Yugul Mangi Development Aboriginal Corporation

• Mrs Katherine Warby – Barkly Pastoralist and Business Owner

• Mr Jimmy Cocking – Director, Arid Lands Environment Centre

• Mr Matt Doman – Director, SA and NT, Australian Petroleum Production and Exploration Association

• Ms Julie-Ann Stoll – Manager, Mining Central Land Council

• Mr Greg Bicknell – Chief Executive Officer, Chamber of Commerce

• Ms Gillian Duggin – Principal Lawyer and Executive Officer, Environmental Defenders Office

• Mr Geoff Crowhurst – Chair, Katherine Mining Services Association

• Mayor Fay Miller – Mayor, Katherine Town Council

• Prof Alan Cass – Director, Menzies School of Health Research

• Mr Michael Bridge – Chairman, Tourism NT

• Mr Joe Morrison – Chief Executive Officer, Northern Land Council

• Mr Greg Owens – Chief Executive Officer, NT Farmers

• Mr David Ciaravolo – Executive Officer, Amateur Fisherman’s Association of the NT

• Mr Damian Hale – Organiser, Australian Workers Union

Read full bulletin here