B07 Oil and Gas Extraction

Forrest’s AIE leads LNG import race

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Original article by Matthew Stevens
The Australian Financial Review – Page: 30 : 30-Apr-19

Australian Industrial Energy has secured regulatory approval to use Port Kembla in New South Wales as the location for its proposed LNG import terminal. At this stage, AIE, which is 50 per cent owned by Andrew Forrest’s Squadron Energy, does not have a CEO. Choosing a CEO is likely to be one of its two main goals before making a final decision on whether to proceed with its LNG terminal, along with securing some firm customers.

CORPORATES
AUSTRALIAN INDUSTRIAL ENERGY PTY LTD, SQUADRON ENERGY, MARUBENI CORPORATION, JERA, AGL ENERGY LIMITED – ASX AGL

Woodside CFO upbeat on prospects for Kitimat LNG

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 17 : 23-Apr-19

Woodside Petroleum and Chevron plan to increase the proposed capacity of their Kitimat LNG project in British Columbia from 10 million tonnes a year to 18 million tonnes, and add a third production train. Woodside CEO Sherry Duhe says it is too soon to know whether Chevron’s acquisition of Anadarko Petroleum will impact on the Kitimat project. She has also downplayed concerns about a fall in LNG spot prices in Asia, citing factors such as increased global supply and a warmer-than-expected winter in the northern hemisphere.

CORPORATES
WOODSIDE PETROLEUM LIMITED – ASX WPL, CHEVRON CORPORATION, ANADARKO PETROLEUM CORPORATION, ENN GROUP, CANADA. NATIONAL ENERGY BOARD, CITIGROUP PTY LTD

Santos warns of PRRT tax hit

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Original article by Paul Garvey
The Australian – Page: 20 : 18-Apr-19

Santos has posted sales revenue of $1.01bn for the March quarter, which is 28 per cent higher than previously, while free cash flow rose to a record $327m. Santos has also advised that it produced 18.4 million barrels of oil equivalent during the quarter, which is up 33 per cent year-on-year. Meanwhile, Santos has indicated that its earnings could be adversely affected by changes to the petroleum resource rent tax that take effect on 1 July.

CORPORATES
SANTOS LIMITED – ASX STO, ROYAL DUTCH SHELL PLC, CONOCOPHILLIPS, QUADRANT ENERGY PTY LTD, RBC CAPITAL MARKETS

Santos makes major gas discovery off WA

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 17 : 17-Apr-19

Santos has had promising results from a drilling program at its Corvus-2 well in the WA-45-R permit, which it acquired via the takeover of Quadrant Energy. Wood Mackenzie has suggested that the Corvus-2 discovery may hold 2.5 trillion cubic feet of gas and 25 million barrels of condensates. Meanwhile, Oil Search has reported revenue of $US398.1m for the March quarter, which is 21 per cent lower than the three months to December. Production fell by three per cent, to 7.25 million barrels of oil equivalent.

CORPORATES
SANTOS LIMITED – ASX STO, OIL SEARCH LIMITED – ASX OSH, WOOD MACKENZIE

Woodside chief steps up call for carbon pricing

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Original article by Glenda Korporaal
The Australian – Page: 22 : 4-Apr-19

Woodside Petroleum CEO Peter Coleman has told the LNG 2019 conference in Shanghai that the industry can take a leading role in reducing global greenhouse gas emissions. Amongst other things, he says LNG can replace fuels that generate higher emissions, including in the road transport and shipping industries. Coleman also argued the case for a global price on carbon, but cautioned that policies aimed at reducing carbon emissions will fail if they are regarded as having a negative impact on jobs and prosperity.

CORPORATES
WOODSIDE PETROLEUM LIMITED – ASX WPL, BHP GROUP LIMITED – ASX BHP, SHELL COMPANY OF AUSTRALIA LIMITED, CHEVRON CORPORATION, HUDONG-ZHONGHUA SHIPBUILDING (GROUP) COMPANY LIMITED

LNG Asia price slump irks east coast manufacturers

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 20 : 28-Mar-19

The Asian spot price of LNG has fallen to a three-year low of around $US4.50 per million British thermal units, which equates to about $6.30 per gigajoule. In contrast, the spot price in Sydney is trading at around $11.25/GJ. Some gas buyers have urged the federal government to intervene by imposing restrictions on Queensland’s LNG exporters, but Resources Minister Matthew Canavan says the best way to put downward pressure on domestic prices is to find new sources of supply.

CORPORATES
AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE, SANTOS LIMITED – ASX STO, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, WESTON ENERGY, INCITEC PIVOT LIMITED – ASX IPL, CLAYPAVE PTY LTD, REMAPAK PTY LTD, WORRELLS SOLVENCY AND FORENSIC ACCOUNTANTS

Miner Forrest makes long march to Norway to protest offshore oil drilling

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Original article by Perry Williams
The Australian – Page: 21 & 24 : 22-Mar-19

Australia’s National Offshore Petroleum Safety & Environmental Management Authority has received more than 30,000 submissions regarding a proposed oil drilling program in the Great Australian Bight. Fortescue Metals Group founder Andrew Forrest is amongst those who oppose the drilling plans of Norway-based Equinor, due to the potential environmental impact on the Bight. Forrest’s Minderoo Foundation recently launched the Flourishing Oceans initiative.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, MINDEROO FOUNDATION, EQUINOR, AUSTRALIA. NATIONAL OFFSHORE PETROLEUM SAFETY AND ENVIRONMENTAL MANAGEMENT AUTHORITY, THE WILDERNESS SOCIETY, VALE SA, CHEVRON CORPORATION, BP PLC, FLOURISHING OCEANS, AUSTRALIAN PETROLEUM PRODUCTION AND EXPLORATION ASSOCIATION LIMITED, ACIL ALLEN CONSULTING PTY LTD, WOOD MACKENZIE

Gas supply glut deflates prices for exporters

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Original article by Perry Williams
The Australian – Page: 24 : 15-Mar-19

Bernstein analyst Neil Beveridge an increase in global LNG supply in 2019 will put downward pressure on spot prices, which will in turn impact on Australia’s LNG exporters. It is estimated that up to 58 million tonnes of additional LNG production may be approved during 2019, while a final investment decision regarding another 64 million tonnes of supply is slated for 2020.

CORPORATES
BERNSTEIN INVESTMENT RESEARCH AND MANAGEMENT, WOODSIDE PETROLEUM LIMITED – ASX WPL, OIL SEARCH LIMITED – ASX OSH, TOTAL SA, EXXONMOBIL CORPORATION

WA ditches carbon offset rules

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Original article by Paul Garvey
The Australian – Page: 4 : 15-Mar-19

Western Australia’s Environmental Protection Authority has agreed to shelve new guidelines on emissions-intensive projects following intervention by the state government. Premier Mark McGowan stepped in following meetings with representatives of energy producers. The EPA will undertake further consultation regarding its proposed rules on carbon offsetting for new industrial projects. Oil and gas producers had expressed concern that the proposed guidelines would jeopardise a number of new projects in the state.

CORPORATES
WESTERN AUSTRALIA. ENVIRONMENTAL PROTECTION AUTHORITY, WESTERN AUSTRALIA. DEPT OF THE PREMIER AND CABINET, WOODSIDE PETROLEUM LIMITED – ASX WPL, SANTOS LIMITED – ASX STO, CHEVRON CORPORATION, ROYAL DUTCH SHELL PLC, AUSTRALIAN LABOR PARTY

Carbon offsets threaten projects

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Original article by Paul Garvey
The Australian – Page: 17 & 20 : 14-Mar-19

The Western Australian Environmental Protection Authority’s new guidelines on the carbon neutrality of resources projects continue to attract scrutiny. Macquarie Group has warned that the guidelines are likely to result in Woodside Petroleum’s Browse LNG project being delayed, and its modelling suggests that the cost of Browse could blow out by more than $US5bn. Woodside COO Meg O’Neill has told a conference in Perth that the EPA guidelines could jeopardise both the Browse and Scarborough projects, as well as the long-term future of the North West Shelf venture.

CORPORATES
WOODSIDE PETROLEUM LIMITED – ASX WPL, WESTERN AUSTRALIA. ENVIRONMENTAL PROTECTION AUTHORITY, MACQUARIE GROUP LIMITED – ASX MQG, REPUTEX ENERGY, WESTERN AUSTRALIA. DEPT OF MINES, INDUSTRY REGULATION AND SAFETY, WESTERN AUSTRALIA. DEPT OF THE PREMIER AND CABINET, ADANI MINING PTY LTD, BUSINESS COUNCIL OF AUSTRALIA, THE CHAMBER OF MINERALS AND ENERGY OF WESTERN AUSTRALIA INCORPORATED, BP PLC, ROYAL DUTCH SHELL PLC