ENERGY INDUSTRIES

Exporters brace for LNG new wave

roymorgansocial Leave a comment

Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 12 : 8-Jan-25

Global supply of LNG is expected to ramp up in 2025, which is likely to weigh on local producers and the federal government’s revenue. The increase in production had been slated to occur in 2024, but delays to a number of LNG projects resulted in this being pushed back to 2025. Meanwhile, EnergyQuest notes that global output of LNG is expected to rise by about 50 million tonnes per annum from 2026, while Saul Kavonic from MST Marquee says there is likely to be a global oversupply of LNG beyond 2026.

CORPORATES
ENERGYQUEST PTY LTD, MST MARQUEE

LNG party to end this year as glut looms

roymorgansocial Leave a comment

Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 11 & 12 : 9-Jan-24

Bernstein Research has forecast that a looming increase in global LNG supply could potentially see prices fall by up to 47 per cent by 2027. The firm notes that global supply is set to increase by about 140 million tonnes by the end of 2024, and this is set to be sustained for the next three years. Neil Beveridge of Bernstein says the global LNG market is reaching a ‘turning point’, and it will revert from being net short to net long in the next several years. Australia exported a record $92.2bn worth of LNG in 2022-23, but expectations of lower export volumes and prices would have a significant impact on future government revenue.

CORPORATES
BERNSTEIN INVESTMENT RESEARCH AND MANAGEMENT

Oil crash threatens to sink industry

roymorgansocial Leave a comment

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

Shares in Australian oil and gas producers were sold down on 22 April, as the global oil glut and falling demand continued to weigh on the crude oil price. The price of Brent crude oil reached a low of US15.98 a barrel, and Citigroup expects it to fall below $US10. The firm expects Brent to average $US17 a barrel during the June quarter. Coal-seam gas industry executive Richard Cottee says a significant production cut may be needed to boost the crude oil price.

CORPORATES
CITIGROUP PTY LTD

Seeds of next LNG glut already being sown

roymorgansocial Leave a comment

Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 17 : 9-Jan-20

Growth in Asian demand for LNG slowed to 2.1 per cent in 2019, amid a global oversupply. However, Bernstein Research forecasts that the glut will end in the second half of 2020 as Asian demand rebounds and a five-year expansion of global output comes to an end. Bernstein also cautions that another oversupply could emerge in the mid-2020s, with a number of new LNG projects slated for coming years. The firm anticipates that projects to be approved over the next 18 months will boost global production by about 70 million tonnes a year.

CORPORATES
BERNSTEIN INVESTMENT RESEARCH AND MANAGEMENT, WOODSIDE PETROLEUM LIMITED – ASX WPL, SANTOS LIMITED – ASX STO, OIL SEARCH LIMITED – ASX OSH, EXXONMOBIL CORPORATION, ENTE NAZIONALE IDROCARBURI SPA, INPEX CORPORATION, TOTAL SA

BP’s grim warning on carbon emissions

roymorgansocial Leave a comment

Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 15 : 7-Oct-19

BP’s chief economist Spencer Dale says everyone has a responsibility when it comes to steering the world towards a goal of zero net carbon emissions. He says energy companies like BP have a role to play in achieving cleaner energy, but that they cannot get too far ahead of governments and society. Dale adds that investing in new oil and gas fields is still important in terms of meeting energy demand in developing nations, while he says there is a growing mismatch between current emissions output and the wishes of society.

CORPORATES
BP PLC

AGL opts to hold on to coal plants

roymorgansocial Leave a comment

Original article by Perry Williams
The Australian – Page: 21 : 20-Sep-19

AGL Energy chairman Graeme Hunt has noted the Paris climate accord is one between countries, and not that one that binds companies. He was commenting on a resolution put by activist group Market Forces to its AGM on 19 September that called on AGL to close its coal-fired power stations by 2030, in line with the Paris Agreement to restrict global warming to 1.5C above pre-industrial levels; 30 per cent of AGL shareholders voted in favour of the resolution. AGL stated that the transition away from coal-fired generation needs to be done in an orderly fashion

CORPORATES
AGL ENERGY LIMITED – ASX AGL, MARKET FORCES

Woodside chief steps up call for carbon pricing

roymorgansocial Leave a comment

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

Gas supply glut deflates prices for exporters

roymorgansocial Leave a comment

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

Boom time for gas as Australia becomes the major player

roymorgansocial Leave a comment

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

Australia likely to be fringe player in next LNG boom

roymorgansocial Leave a comment

Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 23 : 4-Oct-18

Royal Dutch Shell CEO Ben van Beurden expects global demand for LNG to double by 2035. Shell has positioned itself to be a key player in the next LNG boom after making a final investment decision on its $C40bn ($43bn) LNG Canada project. Wood Mackenzie estimates that LNG projects with an annual production capacity of 50-60 million tonnes will receive final approval in 2019. However, Australia is not expected to play a major role in the new LNG boom, as only the Prelude and Ichthys projects are currently being developed.

CORPORATES
ROYAL DUTCH SHELL PLC, WOOD MACKENZIE, INPEX CORPORATION, WOODSIDE PETROLEUM LIMITED – ASX WPL, SANTOS LIMITED – ASX STO, OIL SEARCH LIMITED – ASX OSH