B07 Oil and Gas Extraction

High LNG price sends chill up buyers’ spines

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 13 & 16 : 6-Jan-21

Credit Suisse energy analyst Saul Kavonic says it is possible that there will be a return to double-digit domestic gas prices in 2021. His comments are on the back of North Asian LNG spot prices rising to a six-year high, due to a combination of a supply squeeze and freezing winter temperatures, while the Australian Competition & Consumer Commission is predicting a LNG netback price in February of $15.52 a gigajoule, 78 per cent higher than January.

CORPORATES
CREDIT SUISSE (AUSTRALIA) LIMITED, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, WOODSIDE PETROLEUM LIMITED – ASX WPL, ORIGIN ENERGY LIMITED – ASX ORG, SANTOS LIMITED – ASX STO

Beijing a buyer in Shell gas facilities

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Original article by Perry Williams
The Australian – Page: 2 : 24-Dec-20

The deal for Global Infrastructure Partners to buy a stake in the Queensland Curtis LNG project’s infrastructure could potentially be vetoed on national interest grounds. It has been revealed that China Investment Corporation is a minority investor in the GIP fund that struck the $US2.5bn ($3.3bn) deal to buy part of Shell’s stake in the LNG infrastructure. The deal must be cleared by the Foreign Investment Review Board, although Treasurer Josh Frydenberg can override the FIRB under changes to foreign investment rules that were made earlier in 2020.

CORPORATES
GLOBAL INFRASTRUCTURE PARTNERS,QUEENSLAND CURTIS LNG PTY LTD,CHINA INVESTMENT CORPORATION,ROYAL DUTCH SHELL PLC,AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD,AUSTRALIA. DEPT OF THE TREASURY

Woodside strategy queried as CEO flags exit

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 21 : 9-Dec-20

Woodside Petroleum will consider both internal and external candidates to succeed CEO Peter Coleman, who has advised that he will step down in the second half of 2021. Potential external candidates are said to include Santos CEO Kevin Gallagher and ex-Shell Australia chair Zoe Yujnovich, while Meg O’Neill is widely regarded as the leading internal contender. Some observers have raised concern that Woodside is slated to make a final investment decision on its Scarborough LNG project at around the same time that Coleman will leave the oil and gas group.

CORPORATES
WOODSIDE PETROLEUM LIMITED – ASX WPL, SANTOS LIMITED – ASX STO

Santos sticks to gas, earmarking $1bn for Narrabri development

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Original article by Perry Williams
The Australian – Page: 16 : 2-Dec-20

Santos CEO Kevin Gallagher says the oil and gas producer will not diversify into renewable energy or electricity generation. He contends that global demand for fuels will remain strong for a long time, while gas will play a major role in reducing carbon emissions over coming decades. Meanwhile, Santos expects to make a final investment decision on its Narrabri gas project in the first half of 2023, with the first phase of its development slated to cost $US650m. Santos has also advised that its Barossa LNG project will cost significantly less to develop than initially forecast.

CORPORATES
SANTOS LIMITED – ASX STO

Tough market sours outlook for resources

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Original article by Perry Williams
The Australian – Page: 13 & 16 : 23-Nov-20

A new report from the federal government notes that Australia’s resource and energy sector made final investment decisions on $39bn worth of projects in the year to 31 October, which is 30 per cent higher than previously. The total value of the sector’s investment pipeline has risen to $334bn in 2020. However, the Department of Industry, Science, Energy & Resources’ latest Major Projects report warns that investment is unlikely to return to the levels seen during the last boom in the minerals and energy sector.

CORPORATES
AUSTRALIA. DEPT OF INDUSTRY, SCIENCE, ENERGY AND RESOURCES

China fallout hits Woodside gas sale plan

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 14 & 18 : 12-Nov-20

Woodside Petroleum CEO Peter Coleman says potential Chinese investors have abandoned talks to acquire a stake in Scarborough gas project due to the growing trade tensions between Australia and China. He adds that this contributed to Woodside’s decision to drop plans to reduce its stake in the Scarborough project and focus on selling a stake in the Pluto-2 project. Coleman has stressed that relations between Woodside and its existing Chinese customers and partners remain strong.

CORPORATES
WOODSIDE PETROLEUM LIMITED – ASX WPL

More pain for BP after decision to shut Kwinana refinery

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Original article by Perry Williams, Nick Evans
The Australian – Page: Online : 2-Nov-20

Energy Minister Angus Taylor will hold meetings with the operators of the three remaining oil refinery operators in the week beginning 2 November. This follows the announcement by BP on 30 October that it plans to close its Kwinana refinery in Western Australia, with Taylor’s meetings coming amid fears that Australia’s entire oil refining industry could be gone within 12 months. The three remaining refineries are located at Lytton in Brisbane, and at Geelong and Altona in Victoria, and are operated by Ampol, Viva Energy and ExxonMobil respectively. The closure of Kwinana will see 600 people lose their jobs, while BP is in the process of shedding around 200 additional jobs, most of which are office roles.

CORPORATES
AUSTRALIA. DEPT OF INDUSTRY, SCIENCE, ENERGY AND RESOURCES, BP PLC, AMPOL LIMITED – ALD, VIVA ENERGY GROUP LIMITED – ASX VEA, EXXONMOBIL AUSTRALIA PTY LTD

Forrest to drive gas import terminal

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Original article by Perry Williams
The Australian – Page: 15 : 30-Oct-20

Mining magnate Andrew Forrest is set to proceed with a proposed LNG import terminal at Port Kembla in New South Wales. Sources have indicated that Forrest’s private company Squadron Energy is close to finalising a long-term lease at Port Kembla. Squadron recently bought out its Japanese partners in the project, and it has previously indicated that construction work could start by the end of 2020. A number of other LNG import projects have been proposed to address gas supply concerns in Australia’s eastern states.

CORPORATES
SQUADRON ENERGY PTY LTD

Gas intervention could backfire: Santos

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Original article by Perry Williams
The Australian – Page: 17 : 16-Oct-20

Andrew Liveris, an adviser to the federal government, contends a gas price of $4 a kilojoule is an achievable target for the east coast market. However, gas producers believe such a target is not realistic, and Santos CEO Kevin Gallagher has told the annual Citi Annual Investment Conference that the $4 target is too ambitious. Gallagher says "meddling on price settings" by the federal government would put at risk new supply and investment, while he says that increasing gas supply will help to bring about lower prices.

CORPORATES
SANTOS LIMITED – ASX STO

BHP’s fresh punt on Bass Strait

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Original article by Perry Williams
The Australian – Page: 13 & 20 : 3-Jul-20

BHP is one of several companies that provided funding for a 11,500sq km seismic survey in Bass Strait. This has prompted speculation that BHP may be hoping to make a new gas discovery as a prelude to divesting its 50 per cent stake in the Bass Strait joint venture. ExxonMobil is pressing ahead with plans to sell its stake; some observers believe that BHP’s non-operating stake could be more appealing to prospective buyers, and that it could potentially secure a deal before ExxonMobil.

CORPORATES
BHP GROUP LIMITED – ASX BHP, EXXONMOBIL CORPORATION