B07 Oil and Gas Extraction

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

Soaring LNG shipments yield $43.3b in exports

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 15 : 14-Jan-19

Australian exports of liquefied natural gas rose by 23 per cent to 69.5 million tonnes in 2018, according to Energy Quest, with revenue from LNG exports increasing by an estimated 68 per cent to around $43.3 billion. The rise in 2018 exports was aided by new projects starting up in north-western Australia, with further increases in exports expected in 2019. The Woodside Petroleum-managed North West Shelf venture retained its position as Australia’s top LNG exporter in 2018, shipping around 17.28 million tonnes.

CORPORATES
ENERGYQUEST PTY LTD, WOODSIDE PETROLEUM LIMITED – ASX WPL, CHEVRON AUSTRALIA PTY LTD, SHELL COMPANY OF AUSTRALIA LIMITED

Boom time for gas as Australia becomes the major player

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Original article by Perry Williams
The Australian – Page: 18 : 10-Jan-19

Australia surpassed Qatar as the world’s biggest LNG exporter in late 2018. However, Australia faces growing competition from rival nations in the LNG market, with global production capacity set to increase by nearly 35 million tonnes in 2019. An additional 60 million tonnes worth of annual capacity is also set to be approved over the next 12 months. The global economic outlook may also affect both demand for LNG and the price of LNG.

CORPORATES
CHEVRON CORPORATION, INPEX CORPORATION, ROYAL DUTCH SHELL PLC, WOOD MACKENZIE, SAUDI ARABIAN OIL COMPANY

BHP may lift US oil investment

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Original article by Perry Williams
The Australian – Page: 15 : 10-Jan-19

BHP is tipped to make a final investment decision on an expansion of the Atlantis oil field in the Gulf of Mexico within months. BHP has a 44 per cent stake in the oil field, and speculation that it will proceed with the expansion has been heightened after joint venture partner BP approved the third stage of the project. BP is now the biggest producer of oil in the Gulf of Mexico, with output of 300,000 barrels per day.

CORPORATES
BHP GROUP LIMITED – ASX BHP, BP PLC, PEMEX PETROLEOS MEXICANOS

Record LNG exports, but prices falling

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Original article by Paul Garvey
The Australian – Page: 13 : 9-Jan-19

The Gladstone LNG, Australia Pacific LNG and Queensland Curtis LNG projects’ export volumes rose to a record 5.4 million tonnes during the December quarter. Queensland Resources Council CEO Ian Macfarlane says the oil and gas industry contributed $8.2bn to the economy in 2017-18. Meanwhile, Saul Kavonic of Credit Suisse says declining gas production in Bass Strait has been the key contributor to rising gas prices on the east coast, and that prices would have risen much more if the three Queensland LNG projects did not sell gas into the domestic market.

CORPORATES
GLADSTONE LNG PTY LTD, AUSTRALIA PACIFIC LNG LIMITED, QUEENSLAND CURTIS LNG PTY LTD, QUEENSLAND RESOURCES COUNCIL LIMITED, CREDIT SUISSE (AUSTRALIA) LIMITED, SANTOS LIMITED – ASX STO, ORIGIN ENERGY LIMITED – ASX ORG, CONOCOPHILLIPS, ROYAL DUTCH SHELL PLC, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, AGL ENERGY LIMITED – ASX AGL, ENERGYAUSTRALIA PTY LTD, WOOD MACKENZIE

Energy stocks crunched as oil price slides

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Original article by Paul Garvey
The Australian – Page: 13 : 20-Dec-18

The price of Brent crude oil has shed about 34 per cent since October, with shares in Australia’s three biggest oil producers falling by more than 20 per cent over the same period. London Capital Group’s Jasper Lawler says the downturn in oil prices will result in "significant" deflationary pressure. However, airlines, mining companies and motorists are set to benefit from the sustained fall in the oil price, while US Bank Wealth Management’s Rob Haworth says OPEC’s recent cut in oil production may not be sufficient to offset weakening global demand and rising US shale output.

CORPORATES
LONDON CAPITAL GROUP, US BANK WEALTH MANAGEMENT, ORGANISATION OF PETROLEUM EXPORTING COUNTRIES, WOODSIDE PETROLEUM LIMITED – ASX WPL, SANTOS LIMITED – ASX STO, OIL SEARCH LIMITED – ASX OSH, WORLEYPARSONS LIMITED – ASX WOR, QANTAS AIRWAYS LIMITED – ASX QAN, INTERNATIONAL ENERGY AGENCY

Call for 10pc royalty on offshore gas amid boom

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Original article by Ben Butler
The Australian – Page: 22 : 14-Dec-18

The federal government gained $946m in revenue from the petroleum resource rent tax in 2017, according to data from the Australian Taxation Office. However, the McKell Institute estimates that revenue from the PRRT could increase by $2.8bn a year if a 10 per cent royalty were to be imposed on offshore gas projects. The left-wing think tank argues that the PRRT was designed primarily to encourage the development of marginal oil projects and has little relevance to Australia’s booming gas industry.

CORPORATES
AUSTRALIAN TAXATION OFFICE, McKELL INSTITUTE, CHEVRON CORPORATION, EXXONMOBIL CORPORATION, BHP GROUP LIMITED – ASX BHP, ESSO AUSTRALIA PTY LTD, THE TAX INSTITUTE

Australia becomes an LNG force

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Original article by Perry Williams
The Australian – Page: 21 & 24 : 7-Dec-18

Data from Bloomberg shows that Australia’s LNG exports totalled 6.55 million tonnes in November 2018, surpassing Qatar (6.27 million tonnes) for the first time. Australia’s LNG shipments for the calendar year are expected to exceed 78 million tonnes, compared with 77 million tonnes for Qatar. Projects such as Ichthys will further boost Australia’s LNG exports, although both Qatar and the US intend to increase production. Meanwhile, official figures show that Australia’s revenue from LNG exports totalled $38.8bn in the year to October, while coal and iron ore revenue was $64.6bn and $61.6bn respectively.

CORPORATES
BLOOMBERG LP, AUSTRALIAN BUREAU OF STATISTICS, AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE, INPEX CORPORATION, ROYAL DUTCH SHELL PLC, WOODSIDE PETROLEUM LIMITED – ASX WPL, SANTOS LIMITED – ASX STO, ORIGIN ENERGY LIMITED – ASX ORG, S&P PLATTS