Industry

Following the continued cancellation of US LNG cargoes, data and analytics company GlobalData, says buyers hold all the aces in the current COVID-19 inflicted climate which has impacted investment decisions on major LNG projects.

Adrian Lara, Senior Oil & Gas Analyst at GlobalData, said: “One of the reasons why the US is experiencing a high number of cargo cancellations has to do with the flexibility embedded in the selling of contracts, which is proving to be an advantage for LNG buyers.

The US tolling scheme establishes a penalty generally equal to agreed liquefaction fixed costs of US$2 to US$3 per million British Thermal Units (mmbtu), which is normally a lower penalty when compared to the penalty in traditional LNG take-or-pay contracts.

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APPEA says the Petroleum Legislation Amendment Bill's 2020 passage through the Victorian State Parliament has set the scene for a resumption of onshore gas exploration in the state, which should lead to more gas supply flowing to Victoria’s homes and businesses.

Australia’s oil and gas industry congratulated the State Government and Opposition in supporting the lifting of the onshore conventional gas moratorium from June 2021.

APPEA Chief Executive Andrew McConville said the legislation passed was a step in the right direction to help ensure that Victoria has ongoing secure supplies of natural gas.

The Australian Energy Market Operator has forecast shortfalls in Victorian gas supply as soon as 2024 if more supply is not developed.

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Australian LNG shipments appear to be starting to see the impacts of the COVID-19 pandemic and the global oversupply of LNG, according to the EnergyQuest’s Australian LNG Report for May.

Australian LNG shipments in May were down by seven cargoes compared with April, primarily due to lower cargoes from APLNG and Ichthys, the report stated.

Elaborating on issues that affected exports, EnergyQuest said APLNG buyers had exercised downward contract flexibility and the project had extended planned maintenance, originally planned for 27-31 May, to 27 May to 18 June.

Ichthys has also undergone planned maintenance which affected cargoes.

In May Australian projects shipped 6.4 million tonnes (Mt) (93 cargoes), lower than 6.9 Mt (101 cargoes) in April.

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APPEA has welcomed confirmation that the NSW Independent Planning Commission (IPC) has received a referral for the Narrabri Gas Project.

APPEA Chief Executive Andrew McConville said the referral was a critical step in assessing the project for NSW and providing new gas supply for the state.

“This is an important project for the NSW economy and will play an important role in its economic recovery”, Mr McConville said.

“NSW relies on interstate gas for 96 per cent of its needs and the Narrabri Gas Project could supply up to half of NSW’s gas needs.

“More than one...

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United States crude oil production is showing signs of coming back to life, according to data and analytics company, GlobalData.

This follows the release of data by the Energy Information Administration (EIA) tracking weekly petroleum activity supplemented with information on refined products supplied and weekly crude oil stocks.

“Production cuts in US shale over the last two months have started to have an impact on the US oil market. Refinery utilization is still lower than normal but it seems stable, seeing a small increase over last month.

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The forced oil production shutdowns and the extension of the generous OPEC+ voluntary cuts into July will not only balance the Covid-19-hit global crude and condensate demand, but are deep enough to create a monthly deficit starting from June 2020 and continuing uninterrupted until at least the end of next year, a Rystad Energy analysis says.

The energy research and business intelligent company said the oversupply, which sent WTI oil prices into the negative earlier this year, is a thing of the past “as long as OPEC+ compliance stays strong and the oil demand recovery trajectory isn’t radically altered.

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The decision by the NSW Labor Party to vote with the Greens and a slew of independents in support of a gas moratorium was a vote against NSW jobs and for higher gas and electricity prices for NSW customers, APPEA has said in reaction to the latest political development.

APPEA Chief Executive, Andrew McConville said that the Bill moved by MLC Justin Field would, if it ever were implemented, condemn NSW to higher gas prices and a slower economic recovery, particularly in regions like Narrabri that are already struggling after years of drought and the challenges posed by the COVID-19 pandemic.

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COVID-19, and the subsequent lockdown that quarantined the popular PESA lunches, has had a creative spin-off that has proven to be spectacularly well-subscribed with dozens of Australian and overseas members gravitating to the recently introduced PESA webinars.

The initiative, inspired by WA President Helen Debenham, has attracted regular weekly participants numbering 100-160 members and has proven to be so popular that the initiative has been flagged as a regular activity in the post-COVID era.

Helen said the idea behind the webinars came about as motivation to give paid up members meaningful interaction after the world went into lockdown and regular events were frozen.

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Upstream Production Solutions has announced the appointment of Matthew Campbell to the role of National HSSEQ Manager.

Prior to joining Upstream PS, Matthew worked for CNOOC in Houston managing HSE across deep water projects in the Americas. Prior to this, he has worked for Shell in various locations around the world including the Netherlands, United Kingdom, Norway, Africa and Middle East.

In Australia and New Zealand, he was the Safety Manager for Shell Australia supporting Prelude, Queensland Gas Company (QGC), non-operated ventures (Gorgon, Browse, Arrow and North West Shelf) and Shell NZ projects).

Matthew will oversee Upstream PS national Health, Safety, Security, Environment and Quality (HSSEQ) people, systems and processes, as well as our regulatory relationships.

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