B07 Oil and Gas Extraction

US-China trade deal puts pressure on LNG exporters

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Original article by Glenda Korporaal
The Australian – Page: 20 : 12-Mar-19

China has sourced about 80 per cent of its LNG imports from Australia, Qatar, Malaysia and Indonesia over the last eight years. However, there is speculation that negotiations for a trade deal with the US could see China agree to significantly increase its LNG imports from the US. Any such deal could have major implications for Australia’s LNG exports to China, while other exports could also be affected if China agrees to ramp up its trade with the US.

CORPORATES
CHINA PETROLEUM AND CHEMICAL CORPORATION, CHENIERE ENERGY INCORPORATED, WOODSIDE PETROLEUM LIMITED – ASX WPL, CHEVRON CORPORATION, PETROCHINA COMPANY LIMITED, CHINA NATIONAL PETROLEUM CORPORATION, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT

Carbon rule threatens WA projects

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Original article by Brad Thompson, Angela Macdonald-Smith
The Australian Financial Review – Page: 1 & 9 : 8-Mar-19

Western Australia’s Environmental Protection Authority has issued guidelines regarding new emissions-intensive projects. It states that any new or expanded project that emits over 100,000 tonnes of carbon dioxide a year should be carbon neutral. The new guidelines potentially jeopardise new LNG projects worth over $45 billion, although EPA chairman Tom Hatton notes that its decisions are not binding on the state government.

CORPORATES
WESTERN AUSTRALIA. ENVIRONMENTAL PROTECTION AUTHORITY, WOODSIDE PETROLEUM LIMITED – ASX WPL, AUSTRALIA. DEPT OF THE ENVIRONMENT AND ENERGY, THE CHAMBER OF MINERALS AND ENERGY OF WESTERN AUSTRALIA INCORPORATED, THE WILDERNESS SOCIETY

Gas shortage to hit within three years

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Original article by Perry Williams
The Australian – Page: 19 & 22 : 27-Feb-19

EnergyQuest has forecast that states on the east coast of Australia will experience a shortage of gas by 2022, and they will have insufficient gas to meet peak demand by 2026. The consultancy has also warned that while Queensland will be able to increase supply to the east coast in the near-term, the state’s own production will begin to decline from 2025. EnergyQuest CEO Graeme Bethune says the expected shortfall means importing LNG is likely to be the best option. The looming gas shortage is also forecast to result in gas prices remaining high over the long-term.

CORPORATES
ENERGYQUEST PTY LTD, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIAN ENERGY MARKET OPERATOR LIMITED, SANTOS LIMITED – ASX STO, CREDIT SUISSE (AUSTRALIA) LIMITED

Oil Search says gas output will double in PNG

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Original article by Perry Williams
The Australian – Page: 22 : 20-Feb-19

Oil Search has posted a 2018 net profit of $US341.2m, which is 13 per cent higher than previously, with revenue up six per cent to $US1.535bn. A sharp rise in the price of LNG and crude oil during the year helped offset a decline in full-year production due to an earthquake in Papua New Guinea early in the year. Oil Search still aims to double LNG production in PNG by 2024. Shareholders will receive a final dividend of $US0.085 per share, and a full-year payout of $US0.105 a share.

CORPORATES
OIL SEARCH LIMITED – ASX OSH, EXXONMOBIL CORPORATION, TOTAL SA, RBC CAPITAL MARKETS

Beach lifts profit guidance as more growth tipped

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 18 : 14-Feb-19

Beach Energy has posted a 2081-19 interim net profit of $282.9m and underlying earnings of $278.8m. Sales rose by 169 per cent to $1.057bn, and Beach has upgraded its full-year EBITDA forecast in response to its strong performance in the first half. CEO Matt Kay says the oil and gas group will consider acquisitions, but he stresses that any deals would need to add value for shareholders. Shares in Beach closed 5.3 per cent higher at $1.78 on 13 February.

CORPORATES
BEACH ENERGY LIMITED – ASX BPT, LATTICE ENERGY LIMITED, SEVEN GROUP HOLDINGS LIMITED – ASX SVW, BP PLC, CUE ENERGY RESOURCES NL – ASX CUE, JP MORGAN AUSTRALIA LIMITED, CITIGROUP PTY LTD

BHP’s $1.3bn to lift US oil projects

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Original article by Paul Garvey
The Australian – Page: 20 : 14-Feb-19

Production at the Atlantis oil field in the Gulf of Mexico will increase by about 38,000 barrels of oil equivalent a day following BHP’s decision to invest $US696m ($976.3m) in the third stage of the project. BHP will also spend $US256m on drilling an additional appraisal well at its Trion project off the coast of Mexico. The capital investment is part of BHP’s strategy to increase its conventional oil and gas output.

CORPORATES
BHP GROUP LIMITED – ASX BHP, BP PLC

Gas prices are resilient to LNG softness

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 19 : 12-Feb-19

Cooper Energy is seeking to market around 21 petajoules of gas in 2019-20, while its $355 million Sole gas project off the coast of Victoria is nearing completion. CEO David Cooper says talk of gas prices of between $13 and $15 per gigajoule has eased due to the weaker LNG export market, but buyers are still seeking to buy gas at prices between $9 and $11 per gigajoule. He says Cooper Energy does not tell users what they must pay.

CORPORATES
COOPER ENERGY LIMITED – ASX COE, O-I AUSTRALIA, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, SENEX ENERGY LIMITED – ASX SXY

LNG import plans pushed back to 2020

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 11 & 14 : 5-Feb-19

AGL Energy’s proposed import terminal at Crib Point in Victoria and Australian Industrial Energy’s planned LNG import terminal at Port Kembla in New South Wales are among five LNG import terminals flagged for Australia. However, Saul Kavonic of Credit Suisse says none of the five may be approved by the end of 2019. Labor’s energy spokesman Mark Butler says it has not ruled out LNG import terminals if it wins the upcoming election, while Australian Workers’ Union national secretary Daniel Walton has spoken out against importing LNG.

CORPORATES
AGL ENERGY LIMITED – ASX AGL, AUSTRALIAN INDUSTRIAL ENERGY PTY LTD, AUSTRALIAN LABOR PARTY, AUSTRALIAN WORKERS’ UNION-FEDERATION OF INDUSTRIAL, MANUFACTURING AND ENGINEERING EMPLOYEES, CREDIT SUISSE (AUSTRALIA) LIMITED

Origin buoyed by record Australia Pacific LNG sales

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 23 : 1-Feb-19

Origin Energy has advised that its share of revenue from the Australia Pacific LNG project rose by 45 per cent year-on-year in the December quarter, to $740.9m. Origin received net cash distributions of $393 million from the project during the first half of 2018-19, compared with its guidance of $375m-$395m. Meanwhile, Origin’s domestic electricity and gas sales volumes fell by eight per cent and 21 per cent respectively quarter-on-quarter.

CORPORATES
ORIGIN ENERGY LIMITED – ASX ORG, AUSTRALIA PACIFIC LNG LIMITED, JP MORGAN AUSTRALIA LIMITED, RBC CAPITAL MARKETS, AGL ENERGY LIMITED – ASX AGL, SHANDONG ORDER GAS COMPANY LIMITED

Woodside pushes ahead with Scarborough project

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 14 : 17-Jan-19

Woodside Petroleum has awarded contracts for front-end engineering design work on the Scarborough gas project to McDermott Australia, Subsea Integration Alliance, Saipem and Intecsea. Woodside and its partners are slated to make a final investment decision on the project in 2020. Woodside has a majority stake in Scarborough, while BHP holds a 25 per cent stake and has an option to increase this by 10 per cent.

CORPORATES
WOODSIDE PETROLEUM LIMITED – ASX WPL, BHP GROUP LIMITED – ASX BHP, McDERMOTT AUSTRALIA PTY LTD, SUBSEA INTEGRATION ALLIANCE, SAIPEM AUSTRALIA, INTECSEA PTY LTD, CREDIT SUISSE (AUSTRALIA) LIMITED, EXXONMOBIL CORPORATION