Gas Week

EWN Publishing

Archive for the ‘LNG’ Category

Queensland revolution: Santos’ LNG proposal requires 170-220PJ per annum; and Arrow Energy’s LNG Proposal 55PJ per annum

Posted by gasweek on 10 October, 2007

On the 18 July 2007, Santos announced a proposal to construct a 3-4 million tonnes per annum (mmtpa) liquefied natural gas (LNG) facility at Gladstone.

Read the rest of this entry »

Advertisements

Posted in LNG, Northern Territory, oil, Volume 2603 | Leave a Comment »

Chevron Australia managing director Jay Johnson moving to head oil and gas giant’s Eurasia strategic business unit, based in Kazakhstan; Turnbull ready to sign off on Pluto project

Posted by gasweek on 5 October, 2007

According to energy writer Nigel Wilson, Chevron Australia managing director Jay Johnson was moving to head the oil and gas giant’s Eurasia strategic business unit, based in Kazakhstan, reported The Australian (26/9/2007, p.40). Read the rest of this entry »

Posted in Australia, Gas, LNG, Volume 2603 | Leave a Comment »

Petronas buys half of Shell’s stake in Evans Shoal LNG venture in Timor Sea

Posted by gasweek on 4 October, 2007

According to Nigel Wilson, Petronas, the Malaysian government-owned energy group, had bought half of Shell’s stake in the Evans Shoal LNG venture in the Timor Sea, reported The Australian (25/9/2007, p. B25).

Read the rest of this entry »

Posted in East Timor, LNG, Malaysia, PNG | Leave a Comment »

LNG plans: Santos requires 4,000-5,500PJ; Arrow at least 1,000PJ, three times current level of CSG production; risk development of LNG export project can reduce availability of gas to domestic gas market in Eastern Australia

Posted by gasweek on 2 October, 2007

Santos and Arrow Energy had recently announced proposals for Liquefied Natural Gas (LNG) projects in Gladstone, noted the Owen Inquiry into Electricity Supply in NSW, Availabiltiy and Cost of Gas for NSW Baseload Generation (31/7/2007).

Read the rest of this entry »

Posted in LNG, Owen Review, Volume 2602 | Leave a Comment »

Northern Territory Chief Minister Martin woos Japan, seeks to creep Ichthys LNG project up the Western Australia coast, across the NT border

Posted by gasweek on 26 September, 2007

Northern Territory Chief Minister Clare Martin had had top-level talks in Japan aimed at wrestling the multi-billion-dollar Ichthys LNG project away from Western Australia, reported Nigel Wilson, energy writer, for The Australian, (22/9/2007), p. 35. Read the rest of this entry »

Posted in Contracts, Japan, LNG, Northern Territory, Volume 2601, Western Australia | Leave a Comment »

PetroChina agrees to pay $US7 to $US9 per million British thermal units for Browse gas; China now willing to meet market LNG prices

Posted by gasweek on 26 September, 2007

According to Angela Macdonald-Smith, UBS assumes the Browse project is initially developed using a seven-million-tonne-a-­year onshore plant starting production in 2014, adding a second unit later to double capacity, reported The Sydney Morning Herald (7/9/2007, p. 36).

Read the rest of this entry »

Posted in Australia, China, LNG | Leave a Comment »

Shell deal: 1 million tonnes a year of LNG to China for 20 years; Western Australia’s Channar mine to expand, Yilgarn gears up

Posted by gasweek on 26 September, 2007

Chinese President Hu Jintao’s visit to Perth had turned up the heat on West Australian Premier Alan Carpenter to choose between major infrastructure proposals being pushed by the state’s two biggest export partners, China and Japan, reported The Australian Financial Review (5/9/2007, p. 10).

Read the rest of this entry »

Posted in China, LNG, Volume 2520 | Leave a Comment »

ARC Kimberley model changes with +$70 oil and $5.00 gas: now for LNG and pipeline to the south

Posted by gasweek on 20 September, 2007

ARC Energy Managing Director, Eric Streitberg, in a paper to the Good Oil Conference in Fremantle, said the ARC Energy model had “all changed” with +$70 oil, and $5.00 gas in Western Australia. “Until two years ago oil was marginally economic and gas was uneconomic. With low oil prices, he said – its current transport method – $20 per barrel trucking to Perth –  plus opex – was  often more than the oil price. Now, ARC now planned domestic LNG, and had moved forward, its plans for its Northern Pipeline, to move gas south.

Canning Basin

Posted in Kimberley, LNG, natural gas, Pipelines, Transmission, Volume 2520, WA, Western Australia | Leave a Comment »

Western Australia govt loses staff to higher paying jobs: boom causes mining application backlog

Posted by gasweek on 20 September, 2007

Industry leaders are increasingly frustrated at the slow approvals process, fearing major resources projects may be lost unless the government moves faster, according to The Australian Financial Review (31/8/2007, p. 12).

Read the rest of this entry »

Posted in Gas, LNG, Volume 2520 | Leave a Comment »

Woodside deal with PetroChina to supply 2-3mt LNG/yr from WA Browse project: $35-45bn revenues

Posted by gasweek on 20 September, 2007

A deal with PetroChina Co was for 2-3 million tonnes of LNG a year from the Browse project, off Western Australia, which Woodside operated, for 15 to 20 years, reported The Daily Telegraph (7/9/2007, p.83).

Read the rest of this entry »

Posted in China, LNG, Volume 2520, WA | Leave a Comment »

Shell to supply one million tonnes of LNG annually to PetroChina over a 20-year period from WA Gorgon project

Posted by gasweek on 19 September, 2007

Shell executed a binding heads of agreement for the supply of one million tonnes of LNG annually to PetroChina over a 20-year period, reported The Canberra Times (5/9/2007, p. 13). Read the rest of this entry »

Posted in China, Gas, LNG, Volume 2520, WA, Western Australia | Leave a Comment »

Resource deals announced during APEC not the fruit of APEC deliberations, says newspaper

Posted by gasweek on 19 September, 2007

APEC had nothing to do with the numerous resource deals announced during the conference, according to The Age (8/9/2007, p. B3).

Read the rest of this entry »

Posted in Federal, LNG, Policy, Volume 2520 | Leave a Comment »

Taiwan President, Chen Shui-bian, not allowed to attend the APEC leaders’ meeting because of Chinese objections, sends head of ACER, instead

Posted by gasweek on 19 September, 2007

Taiwan was deeply unhappy that its President, Chen Shui-bian, has not been allowed to attend the APEC leaders’ meeting because of Chinese objections.

Read the rest of this entry »

Posted in China, LNG, Policy, Taiwan, Volume 2520 | Leave a Comment »

Gorgon partners, Chevron and ExxonMobil and Shell: 20-year contract term Shell to sell 1 million tonnes of LNG a year to PetroChina

Posted by gasweek on 18 September, 2007

Shell and PetroChina concluded a binding heads of agreement for the long­term supply of LNG “with the primary source being the Gorgon gas project”. Shell and PetroChina would work to conclude and execute a detailed LNG sale and purchase agree­ment before December next year, conditional on a final investment decision by Gorgon partners, Chevron (50 per cent), and Ex­xonMobil and Shell (25 per cent each), reported The Australian, (5/9/2007, p.29).

Read the rest of this entry »

Posted in China, CO2 dumps, Geosequestration, Greenhouse Trades, LNG, Volume 2520, Western Australia | Leave a Comment »

Gunns plans to convert Tasmania natural gas to LNG, and LPG

Posted by gasweek on 18 September, 2007

Jim Wilkinson, Member for Nelson, Independent, Legislative Council, Parliament of Tasmania, said Gunns was investigating the possibility of converting natural gas to LNG fuel.

Read the rest of this entry »

Posted in LNG, LPG, Tasmania, Volume 2520 | Leave a Comment »

APEC-hurry-up to CO2-dump approval, gives piece of the profits to Japan: as WA approves Chevron’s Gorgon dump

Posted by gasweek on 18 September, 2007

West Australian Environment Minister David Templeman issued environmental approvals and imposed 36 conditions on the undertaking and Chevron Australia managing director Jay Johnson said the company was in talks with Japanese customers about taking a minority equity stake in Gorgon. “Chevron has been working with three Japanese customers and there are provisions for equity participation and purchase of LNG from Chevron,” he said to The Advertiser, (8/9/2007, p.86).

Read the rest of this entry »

Posted in CO2 Dump, CO2 dumps, Japan, LNG, Policy, Volume 2520, WA | Leave a Comment »

Queensland’s Fairview, Scotia and Roma fields to supply between 170 petajoules and 220 petajoules a year to the Gladstone LNG plant

Posted by gasweek on 17 September, 2007

Under the Santos plan gas would be supplied from the company’s Bowen Basin and Surat Basin coal methane reserves which it estimates at more than 5000 petajoules, according to The Australian (19/7/2007, p. 19).

Scotia and Roma fields supplies to Gladstone: Santos said its Fairview, Scotia and Roma fields would supply between 170 petajoules and 220 petajoules a year to the Gladstone LNG plant. Two years ago Santos paid $612 million for the Fairview coal methane property and has since spent more than $200 million on development work.

Capital raising for $300 million expansion: The Santos announcement was made in Gladstone as rival operator Arrow Energy launched a $150 million capital raising to help fund a near $300 million expansion designed to meet a contract, announced in May , to supply gas to a planned 1 million tonnes a year LNG facility, also at Gladstone, being promoted by LNG International and Golar LNG. It is smaller and not related to the Santos proposal, but is already in production.

The Australian, 19/7/2007, p. 19

Posted in LNG, Queensland, Volume 2520 | Leave a Comment »

Oil Search with $US487m in bank and no debt at 30 June, still talking LNG plant for Kutubu

Posted by gasweek on 15 September, 2007

Oil Search is pursuing the study after high exploration spending and write-offs of unsuccessful drilling contributed to a 61 per cent slump in half-year profit to $US46.9 million, according to The Australian Financial Review (22/8/2007, p. 52).

Revenue falls despite record half-year exploration: Revenue fell 5 per cent to $US305.4 million. Despite record half-year exploration spending of $US66.2 million, high oil prices left Oil Search with $US487 million in the bank and no debt at the end of the six months to June 30.

Oil Search set to move into front-end engineering: Managing director Peter Botten said Oil Search was set to move into front-end engineering and design for an LNG project by early next year, either in joint venture with long-time partner ExxonMobil or as a smaller development with Britain’s BG Group. “All the work is underscoring the viability of PNG LNG,” Botten said. “We’re looking at how to optimise the oil and gas together.”

Delays in securing drilling rigs: PNG has a substantial certified reserves base to support an LNG development. He said PNG’s new government was very committed to the LNG project. It would cost between $30 million and $35 million to develop from about 2 trillion to 2.5 trillion cubic feet of gas in the Kutubu field for the LNG project, because of the existing infrastructure for producing oil. Oil Search said in its quarterly report it expected between 9.5 million barrels and 10 million barrels, down from 10.5 million to 11 million, because of issues including delays in securing drilling rigs.

The Australian Financial Review, 22/8/2007, p. 52

Posted in LNG, PNG, Volume 2520 | Leave a Comment »

First LNG project supplied by CSG: Santos Gladstone LNG forecast to produce 3-4mt LNG/yr from Curtis Island; ‘major project’ status allocated

Posted by gasweek on 15 September, 2007

Gladstone LNG, due for final investment go-ahead towards the end of 2009 and first production early in 2014, will be the first LNG project supplied by coal-seam gas, which will come from Santos’s huge resource in central Queensland, reported The Australian Financial Review (20/7/2007, p.68). The Queensland Government has given Gladstone LNG major project status, which will help ease regulatory hurdles, and Central Queensland Ports Corp agreed to provide Santos a site on Curtis Island.

Major advantages: John Ellice-Flint conceded it may take time for analysts and investors to get used to the idea of exporting coal seam gas, but insisted there were major advantages, including development costs. “Anything onshore is going to be cheaper than anything offshore.” Gladstone LNG was forecast to produce between 3 and 4 million tonnes of LNG a year, requiring between 170 and 220 petajoules of gas a year. Analysts said Santos will have to manage the ramp-up of production from the 500 wells it planned to drill during the five-year development of Gladstone LNG, but it will be able to shut-in some of its conventional gas output to match domestic supply and demand in the meantime.

Gladstone costs less: Ellice-Flint said Gladstone was a cheaper place to build an LNG project than either Darwin or the North-West Shelf because it had existing infrastructure and a large number of experienced workers. Between 200 and 300 of the workers who built Darwin LNG, for example, lived in Gladstone. “If you compare the access to skills and facilities in Gladstone, you cannot compare them with northern Australia or Western Australia,” he said. “You’ve got rail, you’ve got power, you’ve got people that are used to building large construction projects. Deepwater ports [like Gladstone’s] are critical in LNG.”

The Australian Financial Review, 20/7/2007, p. 68

Posted in LNG, Queensland | Leave a Comment »