ENERGY INDUSTRIES – AUSTRALIA

Mine export surge holds up economy

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Original article by Angela Macdonald-Smith, John Kehoe
The Australian Financial Review – Page: 1 & 4 : 29-Mar-21

The federal government expects the value of Australia’s resources and energy exports to top $296bn in 2020-21, after a record $291bn in the previous financial year. The surge in export earnings will be driven by iron ore; the Department of Industry, Science, Energy & Resources now expects iron ore earnings to total $136bn, compared with its forecast in December of $123bn for the financial year. However, exports of LNG, thermal coal and coking coal are forecast to be lower in 2020-21. The record resources and energy exports will boost the Budget bottom line, with the full-year deficit now expected to be $150bn.

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

Forrest’s LNG import vital to avoid shortfall

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 7 : 29-Mar-21

Andrew Forrest’s proposed LNG import terminal at Port Kembla in New South Wales is tipped to inject up to 500 terajoules of gas into the domestic market per day, beginning in January 2023. Nicola Falcon from the Australian Energy Market Operator says the project comes at a critical time, with current gas production in Victoria falling at a faster rate than was previously forecast. The Port Kembla project is expected to cost in the vicinity of $250 million and is one of six LNG import projects being flagged for NSW, Victoria and South Australia.

CORPORATES
AUSTRALIAN ENERGY MARKET OPERATOR LIMITED

Gorgon LNG permits slashed by decade

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Original article by Peter Ker
The Australian Financial Review – Page: 15 : 12-Jan-21

Chevron will be required to renew its permit to operate the Gorgon LNG export facility on Barrow Island more frequently after the Western Australian government decided to amend it. Chevron was granted an amended 20-year permit in July 2018, but Environment Minister Stephen Dawson has reduced this to just 10 years, arguing that this is sufficient. The Conservation Council of WA had lobbied for Chevron’s permit to be reduced to just three years. Shipments from the Gorgon project commenced in March 2016. Gorgon is expected to be operational for about four decades.

CORPORATES
CHEVRON CORPORATION, WESTERN AUSTRALIA. DEPT OF ENVIRONMENT AND CONSERVATION, CONSERVATION COUNCIL OF WESTERN AUSTRALIA INCORPORATED

Producers to reap windfall as LNG price soars

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Original article by Perry Williams
The Australian – Page: 17 : 11-Jan-21

Australia’s revenue from LNG exports is likely to rise strongly after a surge in demand for LNG in Asia boosted the price of the commodity. Industry sources have stated that a Japanese utility has paid $US37 per million British thermal units for an LNG shipment from the Gorgon project in Western Australia. The benchmark for LNG spot prices in North Asia also recently rose to $US20.70 per mbtu, compared with just $US2 per mbtu in June. Cold weather in Asia has been the key driver of the surge in demand for LNG.

CORPORATES

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

Refinery rescue deal to safeguard fuel stocks

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Original article by Ben Packham
The Australian – Page: 5 : 14-Dec-20

The federal government is set to announce a rescue package for the Lytton, Geelong and Altona oil refineries to ensure that they remain operational until mid-2021. The refineries will receive a payment of at least $0.01 per litre for their petrol, diesel and jet fuel production over the six months from 1 January. Energy Minister Angus Taylor says the government is finalising a long-term market mechanism for the production payment, which is slated to take effect from 1 July. The future of Australia’s three remaining refineries has come under scrutiny following BP’s recent decision to close its Kwinana plant.

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

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