ENERGY INDUSTRIES – AUSTRALIA

Santos to divert gas

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 17 & 28 : 8-Sep-17

Santos has pre-empted the Federal Government’s decision on triggering the Australian Domestic Gas Security Mechanism by agreeing to redirect 30 petajoules of gas from the Gladstone LNG export project to the domestic market in 2018 and 2019. The LNG buyer that has agreed to accept reduced exports is believed to be either Petronas or Korea Gas Company, which are partners in the GLNG project. Santos also recently struck a deal to supply gas to the Pelican Point power station in South Australia. Wood Mackenzie estimates that the latest deal will ensure that the gas shortfall on the east coast will be minimal in 2018.

CORPORATES
SANTOS LIMITED – ASX STO, GLADSTONE LNG PTY LTD, PETRONAS GAS BHD, KOREA GAS CORPORATION, WOOD MACKENZIE, TOTAL SA, SHELL COMPANY OF AUSTRALIA LIMITED, QUEENSLAND CURTIS LNG PTY LTD, ENGIE SA, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

Shell chief expects gas export clampdown

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Original article by Andrew White
The Australian – Page: 17 & 20 : 7-Sep-17

Shell Australia chair Zoe Yujnovich says the Federal Government is likely to implement its Australian Domestic Gas Supply Mechanism in 2018. She forecasts that the Australian Energy Market Operator will announce a structural shortfall of gas in the next few weeks, although she adds that the ADGSM is unlikely to have much impact on Shell’s LNG exports. Yujnovich adds that there are indications of downward pressure on gas prices.

CORPORATES
SHELL COMPANY OF AUSTRALIA LIMITED, SANTOS LIMITED – ASX STO, AUSTRALIA. DEPT OF THE ENVIRONMENT AND ENERGY

Santos to cap Gladstone gas exports

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Original article by Matt Chambers
The Australian – Page: 22 : 25-Aug-17

Oil and gas producer Santos has posted a 2017 interim net loss of $US506m ($A642m), following a $US1.1bn loss for the previous corresponding period. However, it has booked an underlying profit of $US156m, compared with a $A5m loss previously. Revenue rose from $US1.21bn to $US1.5bn. MD ‘Kevin Gallagher says Santos is poised to announce additional domestic gas supply contracts, while it intends to limit the Gladstone LNG project’s annual export volumes to six million tonnes until the mid-2020s.

CORPORATES
SANTOS LIMITED – ASX STO

Seven remains upbeat on China despite exit

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Original article by Tess Ingram
The Australian Financial Review – Page: 13 & 26 : 23-Aug-17

Listed conglomerate Seven Group Holdings has posted a 2016-17 net profit of $A44.5m, which is 77.4 per cent lower than previously. The result was marred by impairment charges associated with Seven West Media. Seven Group’s EBIT of $A333.3m was 10 per cent higher than previously, and the group forecasts EBIT growth of 5-10 per cent in 2017-18. Meanwhile, Seven has struck a $A540m deal to sell the Chinese division of its WesTrac heavy equipment business to Lei Shing Hong Machinery.

CORPORATES
SEVEN GROUP HOLDINGS LIMITED – ASX SVW, WESTRAC HOLDINGS PTY LTD, WESTRAC CHINA COMPANY LIMITED, LEI SHING HONG MACHINERY, CATERPILLAR, COATES HIRE LIMITED, SEVEN WEST MEDIA LIMITED – ASX SWM, BEACH ENERGY LIMITED – ASX BPT, LATTICE ENERGY LIMITED, ORIGIN ENERGY LIMITED – ASX ORG, GOLDMAN SACHS AUSTRALIA PTY LTD

Woodside has offshore platform lithium-ion battery breakthrough

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 13 : 22-Aug-17

Oil and gas producer Woodside Petroleum will reduce its energy costs and carbon emissions by installing a lithium-ion battery storage system on one of the North West Shelf’s offshore platforms. CEO Peter Coleman says Woodside considered renewable energy options before opting to replace one of the gas turbine generators on the Goodwyn offshore platform with battery storage. The battery system is expected to reduce the platform’s carbon emissions by around five per cent, and Woodside may roll out the technology at other NWS platforms if it proves to be successful.

CORPORATES
WOODSIDE PETROLEUM LIMITED – ASX WPL, ABB GROUP

Shake-up looming for North West Shelf

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Original article by Paul Garvey
The Australian – Page: 19 : 17-Aug-17

Woodside Petroleum has posted a 2017 interim net profit of $US507m, which is 49 per cent higher than previously. Shareholders will receive a half-year dividend of $US0.49 per share, an increase of 44 per cent. Meanwhile, CEO Peter Coleman has indicated that Woodside would be interested in increasing its stake in the North West Shelf project if some of its partners opt to sell down their interest in it as the LNG plant begins shifting its focus to toll-treating gas from third parties.

CORPORATES
WOODSIDE PETROLEUM LIMITED – ASX WPL, MACQUARIE GROUP LIMITED – ASX MQG

Santos deflated by $880m in impairments

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Original article by Matt Chambers
The Australian – Page: 19 : 16-Aug-17

Santos has advised that its 2017 half-year accounts will include after-tax impairment charges totalling $US690m ($A880m). This includes a $US870m write-down in the value of its 30 per cent stake in the Gladstone LNG project, which was prompted by a downgrade in the group’s oil price assumptions for the next five years. The write-downs will be offset by a $US330m after-tax write-back associated with its Cooper Basin assets. Deutsche Bank expects Santos to post an underlying interim net profit of $US121.6m.

CORPORATES
SANTOS LIMITED – ASX STO, GLADSTONE LNG PTY LTD, DEUTSCHE BANK AG, ORIGIN ENERGY LIMITED – ASX ORG, AUSTRALIA PACIFIC LNG LIMITED, AWE LIMITED – ASX AWE, RBC CAPITAL MARKETS, MACQUARIE GROUP LIMITED – ASX MQG, ENGIE SA

Santos to supply gas for Pelican Point generator

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 15 : 15-Aug-17

Wood Mackenzie says the Gladstone LNG project’s latest gas supply deal will make it less likely that the Australian Domestic Gas Security Mechanism will be enforced in 2018. The Santos-led project will supply 15 petajoules of gas to Engie’s Pelican Point power station in South Australia over two years. Santos is poised to announce details of additional domestic gas supply contracts. The two rival LNG export projects in Queensland have also secured domestic gas supply deals in recent months.

CORPORATES
SANTOS LIMITED – ASX STO, GLADSTONE LNG PTY LTD, WOOD MACKENZIE, AUSTRALIA PACIFIC LNG LIMITED, QUEENSLAND CURTIS LNG PTY LTD, ORIGIN ENERGY LIMITED – ASX ORG, ROYAL DUTCH SHELL PLC, QUEENSLAND GAS COMPANY LIMITED, ENGIE SA, AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE, KOREA GAS CORPORATION, PETROLIAM NASIONAL BERHAD, TOTAL SA

Exxon’s Dory could ease east coast gas shortage

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Original article by Matt Chambers
The Australian – Page: 20 : 8-Aug-17

Saul Kavonic of Wood Mackenzie says the Dory gas discovery in Bass Strait could potentially relieve pressure on east coast gas supplies in the long-term. However, he adds that this assumes that the contingent resource estimate of 2.2 trillion cubic feet is proven by further exploration work. Kavonic also notes that no major production at Dory would be likely until at least 2023. ExxonMobil acquired the Dory gas field from Liberty Petroleum earlier in 2017.

CORPORATES
EXXONMOBIL CORPORATION, LIBERTY PETROLEUM, WOOD MACKENZIE, BHP BILLITON LIMITED – ASX BHP, APACHE CORPORATION

ExxonMobil lands a whopper in Bass Strait with huge gas reserves

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Original article by Matt Chambers
The Australian – Page: 17 & 20 : 7-Aug-17

A deal for ExxonMobil to acquire the Dory gas field in Bass Strait could provide greater certainty of future energy supply to Australia’s east coast. US-based Liberty Petroleum recently sold the undeveloped gas field to ExxonMobil for an undisclosed price, which is believed to include a royalty agreement. Drilling work undertake by Liberty to date suggests that Dory could potentially yield up to 2.2 trillion cubic feet of gas. It is believed that ExxonMobil’s Bass Strait joint venture partner BHP Billiton has an option to acquire an interest in Dory.

CORPORATES
EXXONMOBIL CORPORATION, BHP BILLITON LIMITED – ASX BHP, LIBERTY PETROLEUM, APACHE ENERGY LIMITED, WOODSIDE PETROLEUM LIMITED – ASX WPL, 3D OIL LIMITED – ASX TDOCA