ENERGY INDUSTRIES – AUSTRALIA

Warning on rush to build LNG terminals

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Original article by Paul Garvey
The Australian – Page: 20 : 17-Jul-18

Four LNG import terminals are currently mooted for Australia; two in Victoria, and one each in New South Wales and South Australia. However, Nicholas Browne from Wood Mackenzie says Australia does not need that many terminals, based on its current market forecasts. Of the four terminals currently flagged, Browne says AGL’s proposed terminal at Crib Point in Victoria is most likely to be developed first.

CORPORATES
WOOD MACKENZIE, AGL ENERGY LIMITED – ASX AGL, EXXONMOBIL AUSTRALIA PTY LTD, MITSUBISHI CORPORATION

Twiggy, Santos battle over gas developments

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Original article by Perry Williams
The Australian – Page: 17 & 27 : 10-Jul-18

Macquarie has suggested that Santos could find it hard to secure New South Wales government approval for its Narrabri coal-seam gas project if Australian Industrial Energy builds an LNG import terminal. AIE CEO James Baulderstone claims that the facility would be able to supply gas to NSW much faster and at much lower cost. However, Santos CEO Kevin Gallagher argues that gas from Narrabri would be much cheaper. The AIE consortium’s members include iron ore magnate Andrew Forrest.

CORPORATES
SANTOS LIMITED – ASX STO, AUSTRALIAN INDUSTRIAL ENERGY, MACQUARIE GROUP LIMITED – ASX MQG, NEW SOUTH WALES. DEPT OF PLANNING AND ENVIRONMENT

Santos in $400m bid to lift gas supply

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 17 : 1-Jun-18

Santos has confirmed that it will proceed with the Arcadia gas project in Queensland’s Bowen Basin, which will boost coal-seam gas supplies to the Gladstone LNG plant by 75 terajoules a day. Santos drilled 13 gas wells in a pilot project at Arcadia, and the full project will comprise 137 wells and associated infrastructure. About 300 jobs are expected to be created during the construction phase, while Santos MD Kevin Gallagher says Arcadia should help put downward pressure on east coast gas prices.

CORPORATES
SANTOS LIMITED – ASX STO, GLADSTONE LNG PTY LTD, PETRONAS GAS BHD, TOTAL SA, KOREA GAS CORPORATION, QUEENSLAND. DEPT OF NATURAL RESOURCES AND MINES

Woodside vows to defend SNE oil site

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Original article by Matt Chambers
The Australian – Page: 20 : 31-May-18

The legal dispute over a stake in the SNE oilfield in Senegal was a key issue on the agenda at FAR Limited’s 2018 AGM. Chairman Nic Limb told shareholders that the company will have the right to buy a 35 per cent stake in the oilfield at the same price that Woodside Petroleum paid for it if an arbitration court rules in FAR’s favour. He has also not ruled out seeking a partner to buy the stake if Woodside’s deal with ConocoPhillips is overturned. A Woodside spokeswoman has described the arbitration as "frivolous" and without merit.

CORPORATES
FAR LIMITED – ASX FAR, WOODSIDE PETROLEUM LIMITED – ASX WPL, CONOCOPHILLIPS, INTERNATIONAL COURT OF ARBITRATION

Santos and ENN in an awkward spot after Harbour bid rejected

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Original article by Simon Evans, Michael Smith
The Australian Financial Review – Page: 17 : 25-May-18

Oil and gas producer Santos announced on 22 May that it had rejected a $A14.4 billion takeover bid from private equity firm Harbour Energy. Chinese gas firm ENN, which is a major shareholder in Santos, did not take part in the board’s decision to reject Harbour’s bid, as it had backed the Harbour offer. Santos CEO Kevin Gallagher says he does not expect there to be any tension on its board as a result of the decision to reject the offer, while Macquarie Capital has described the decision as a "bold move".

CORPORATES
SANTOS LIMITED – ASX STO, HARBOUR ENERGY LIMITED, ENN ECOLOGICAL HOLDINGS COMPANY LIMITED, MACQUARIE CAPITAL PTY LTD, HONY CAPITAL, ENERGYQUEST PTY LTD

LNG shortage to hit soon, says Woodside

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Original article by Matt Chambers
The Australian – Page: 17 & 28 : 24-May-18

Woodside Petroleum now expects a global shortage of LNG to occur in 2021, with CEO Peter Coleman warning that supply and demand could be in deficit even earlier. Woodside had previously flagged an LNG shortage in 2023, but it has revised this forecast due to factors such as rising demand in Asian countries other than China. Coleman also says contract prices for LNG buyers on Australia’s east coast are likely to rise.

CORPORATES
WOODSIDE PETROLEUM LIMITED – ASX WPL, BHP BILLITON LIMITED – ASX BHP, CHEVRON CORPORATION

Santos share price now at right level

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Original article by Simon Evans
The Australian Financial Review – Page: 17 & 28 : 24-May-18

Troy Angus of Paradice Investment Management says Santos’s rejection of a takeover offer from Harbour Energy was justified, saying it did not reflect the growth potential of some assets. Santos CEO Kevin Gallagher has also defended the decision to spurn the $A14.4bn bid, after Harbour Energy questioned the oil and gas group’s medium-term growth opportunities. Santos shares closed 8.4 per cent lower at $A5.90 on 23 May, but Gallagher says the stock is now at an appropriate after rising in recent months.

CORPORATES
SANTOS LIMITED – ASX STO, HARBOUR ENERGY LIMITED, PARADICE INVESTMENT MANAGEMENT PTY LTD, CONOCOPHILLIPS, ENN ECOLOGICAL HOLDINGS COMPANY LIMITED, HONY CAPITAL, AUSTRALIAN LABOR PARTY

ACCC has no power to break up AGL

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Original article by Ben Potter
The Australian Financial Review – Page: 10 : 24-May-18

AGL Energy’s market power has come under scrutiny in the wake of its refusal to back down on plans to shut down the Liddell coal-fired power station in 2022. However, former Australian Competition & Consumer Commission chairman Allan Fels says neither the competition regulator or the federal government have the power to force a company to sell assets or take action to reduce its market share. Fels says there may be a case for adding divestiture powers to section 46 of the Competition and Consumer Act, although the Harper review in 2015 rejected this in favour of an "effects test".

CORPORATES
AGL ENERGY LIMITED – ASX AGL, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, ORIGIN ENERGY ASSET MANAGEMENT LIMITED, ENGIE SA, ENERGYAUSTRALIA PTY LTD, AUSTRALIA. DEPT OF THE ENVIRONMENT AND ENERGY, DELOITTE ACCESS ECONOMICS PTY LTD

Industry baulks at Pauline’s gas pact

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Original article by Matt Chambers
The Australian – Page: 4 : 23-May-18

The Australian Petroleum Production & Exploration Association has warned that oil and exploration costs would rise under proposals put forward by One Nation leader Pauline Hanson. The Federal Government had agreed to a number of concessions in return for One Nation’s support for its company tax package, including changes to the Petroleum Resource Rent Tax and a gas reservation scheme in Western Australia. One Nation subsequently withdrew its support for the tax package, although LNG producers still anticipate some changes to the PRRT.

CORPORATES
AUSTRALIAN PETROLEUM PRODUCTION AND EXPLORATION ASSOCIATION LIMITED, ONE NATION PARTY, CHEVRON AUSTRALIA PTY LTD, AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE

Santos rejects $14.5bn Harbour bid

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Original article by Matt Chambers, Scott Murdoch
The Australian – Page: 17 & 22 : 23-May-18

Santos has terminated discussions with Harbour Energy after its board deemed that the suitor’s "best and final" offer of $US5.21 ($A6.95) per share did not reflect the oil and gas group’s full value. The deal would have required approval by 75 per cent of Santos shareholders, as well as the Foreign Investment Review Board. It is believed that Santos CEO Kevin Gallagher and most of its board supported the deal, but chairman Keith Spence is said to have opposed it from the outset. Santos shares closed $A0.08 higher at $A6.44 on 22 May.

CORPORATES
SANTOS LIMITED – ASX STO, HARBOUR ENERGY LIMITED, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD