Industry

The Australian natural gas industry is responding to the personnel and operational challenges posed by the COVID-19 pandemic to ensure vital energy supplies are maintained.

The Australian Petroleum Production & Exploration Association (APPEA) and Australian Pipelines and Gas Association (APGA) are working with members, governments and energy users to ensure the delivery of essential gas supply to local customers.

APPEA Chief Executive Andrew McConville and AGPA Chief Executive Officer Steve Davies confirmed members were taking all steps necessary to ensure the production and delivery of gas supplies continued.

“Our industry provides vital energy resources to millions of...

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88 Energy has announced that drilling of the production hole at the Charlie-1 appraisal well on the Alaska North Slope at Project Icewine will commence imminently.

88E and farm-in partner Premier Oil are targeting 1.6 billion barrels of gross mean prospective oil resource potential, with 480MMBO net to 88E.

As part of the farm-in deal, 88 Energy will operate Charlie-1 via its 100% owned subsidiary Accumulate Energy Alaska, Inc and the cost of the well will be funded by Premier Oil Plc up to US$23 million.

The Charlie-1 well has been designed as a step out appraisal...

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Following the news that Saudi Arabia is responding to Russia’s refusal to a new oil production cut agreement by cutting oil prices and boosting supply, Will Scargill, Managing Oil & Gas Analyst at GlobalData, said of the likely outcome.

“The Saudis’ apparent price war is a risky strategy that may take months to play out. In reality, the brunt of the previous OPEC production cuts were borne by OPEC members and Saudi Arabia more specifically, with Russia not implementing significant cuts.

It appears unlikely that it will allow itself to be forced into them now in response...

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The collapse in crude oil prices is wiping out much of the US petrochemical competitive advantage while global demand is being slammed by the continuing spread of the coronavirus. Financial markets are seizing up, throwing a wet blanket on new chemical investment and M&A activity, and ratcheting up the risk of a global recession, reports Joseph Chang, Global Editor, ICIS Chemical Business.

“All things being equal, this [crude oil plunge] would tend to diminish competitiveness of US-based petrochemicals but it also depends on by-product values from cracking naphtha,” said Kevin Swift, chief economist of the American Chemistry Council (ACC).

Crude oil prices are also being watched closely as this has major implications for downstream prices and margins.

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Equnior’s decision to withdraw its plans to drill for oil in the Great Australian Bight has been attributed to increasing carbon-related constraints in Europe.

That is the view of EnergyQuest CEO Dr Graeme Bethune, an energy analysis and strategist, who described the decision as “disappointing for Australia and South Australia”.

“In our view, the decision is likely to have been driven by stronger carbon reduction targets of the European oil companies,” Dr Bethune said.

“Earlier this month, Equinor announced it would include Scope 3 in its emission reduction target (50% cut in net carbon intensity by 2050).

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From a starting point of approximately 1.2 billion cubic feet per day (bcfd) of export capacity in 2016, the US will become the third most important liquid natural gas (LNG) exporting country with a total capacity of 8.9bcfd by the end of 2020, according to data and analytics company GlobalData.

Adrian Lara, Senior Analyst Upstream Americas at GlobalData, comments: “By the year 2025, the additional capacity from new trains in existing plants, as well as from newly constructed plants, will reach an estimated 14.3bcfd.  

“However, several approved LNG plants could start production as early as 2023...

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APPEA has welcomed the announcement by the Victorian Opposition to support lifting the state’s moratorium on conventional onshore natural gas development.

APPEA Chief Executive Andrew McConville said Victorian homes and business would continue to bear the cost burden if the politically-motivated ban on gas development remained in place.

“Natural gas will continue to be a significant source of energy for Victoria for decades ahead, and a sensible position on onshore resource development is needed for all Victorians,” Mr McConville said.

“Victoria has an ongoing requirement for more natural gas.

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Australian Gas Networks Limited (AGN) has announced that it had been awarded funding of $1.28 million from the Federal Government’s Australian Renewable Energy Agency (ARENA) to support the Australian Hydrogen Centre (AHC) to explore the feasibility of blending hydrogen into natural gas networks.

The AHC has also received funding support from SA’s Department for Energy and Mining and Victoria’s Department of Environment, Land, Water and Planning. Other AHC Founding Members include gas and energy infrastructure business AusNet Services, and leading renewable energy companies, ENGIE and Neoen.

The AHC will develop feasibility studies to inject up to 10%...

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The Australian Government has moved quickly to ensure the safety and integrity of the Northern Endeavour, signing a new agreement with Upstream Production Solutions (UPS), to operate and maintain the vessel.

UPS is a respected and reliable operator in the offshore sector. It will operate the vessel in lighthouse mode, the minimum required for safe operations, with no production and a small crew until a longer-term solution is determined.

Minister for Resources, Water and Northern Australia Keith Pitt said the Northern Endeavour was in reliable hands.

“UPS has safely re-boarded the Northern Endeavour and reports that the...

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