ENERGY INDUSTRIES – AUSTRALIA

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

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

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

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

Santos CEO comes out firing on Narrabri

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 4 : 27-Feb-19

New South Wales Opposition Leader Michael Daley says Labor will block Santos’s proposed Narrabri coal seam gas project if it wins the state election on 23 March. He has warned that the $3bn project presents an "unacceptable risk" to water resources, farming and indigenous communities. Santos CEO Kevin Gallagher has stressed that protecting the environment and water resources is a priority for the oil and gas group. He adds that failure to develop the state’s gas resources will result in higher gas and electricity prices, as well as the loss of manufacturing jobs and investment in the state.

CORPORATES
SANTOS LIMITED – ASX STO, AUSTRALIAN LABOR PARTY, NEW SOUTH WALES. DEPT OF PLANNING AND ENVIRONMENT, CREDIT SUISSE (AUSTRALIA) LIMITED

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