ENERGY INDUSTRIES – AUSTRALIA

Origin posts bumper sales of petroleum

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

Origin Energy has advised that its petroleum production rose by 40 per cent to 232 petajoules in 2016-17, while revenue from its petroleum operations increased by 105 per cent to $A2.2bn. The result was boosted by sales of $A1.46bn from its 37.5 per cent stake in the Australia Pacific LNG project, while sales of conventional oil and gas grew by 26 per cent to $A746.9m. Origin has also reported production of 89.2 petajoules for the June quarter, which is 30 per cent higher than previously.

CORPORATES
ORIGIN ENERGY LIMITED – ASX ORG, AUSTRALIA PACIFIC LNG LIMITED, LATTICE ENERGY, BEACH ENERGY LIMITED – ASX BPT, QUESTUS ENERGY, JP MORGAN AUSTRALIA LIMITED, RBC CAPITAL MARKETS

Chevron on the cusp of starting up Wheatstone

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 15 : 31-Jul-17

Chevron has advised that the first production train at the Wheatstone LNG project in Western Australia is in the final stages of commissioning, and production is expected to begin in August 2017. Chevron’s Jay Johnson adds that the second production train is slated to become operational about 6-8 months later. He also says some efficiency improvements are likely when the second train begins production, as was Chevron’s experience at the Gorgon LNG project.

CORPORATES
CHEVRON CORPORATION, WOODSIDE PETROLEUM LIMITED – ASX WPL, APACHE CORPORATION

Canavan turns up heat on LNG exporters

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 15 & 20 : 25-Jul-17

The Federal Government will decide by November 2017 whether to impose LNG export controls in 2018 via its Australian Domestic Gas Security Mechanism. Resources Minister Matt Canavan has sought advice from regulatory agencies regarding the outlook for gas supply and demand. He has expressed disappointment with gas producers’ proposals to date for resolving the gas crisis on the east coast. Santos CEO Kevin Gallagher has urged greater co-operation between the gas industry and governments to encourage investment in new projects.

CORPORATES
AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE, SANTOS LIMITED – ASX STO, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, AUSTRALIAN ENERGY REGULATOR, THE AUSTRALIAN INDUSTRY GROUP, EXXONMOBIL CORPORATION, BHP BILLITON LIMITED – ASX BHP, ENERGYQUEST PTY LTD

Woodside chief flags $6bn LNG overhaul

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Original article by Matt Chambers
The Australian – Page: 21 : 21-Jul-17

Woodside Petroleum’s production in the June 2017 was 3.3 per cent lower than the March quarter, at 20.7 million barrels of oil equivalent. Sales revenue was 3.1 per cent lower at $US867m. The downturn has been attributed to scheduled maintenance work at the Pluto LNG project and an unplanned outage at the Karratha LNG plant. Meanwhile, Woodside has proposed investing an additional $US5bn ($A6bn) in the Karratha plant to keep it operational for another two decades and use it to process third-party gas.

CORPORATES
WOODSIDE PETROLEUM LIMITED – ASX WPL, ROYAL DUTCH SHELL PLC, BHP BILLITON LIMITED – ASX BHP, BP PLC, CHEVRON CORPORATION, MITSUI AND COMPANY LIMITED, MITSUBISHI CORPORATION

Origin awaits Beetaloo gas bonanza go-ahead

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 15 : 20-Jul-17

Origin Energy’s chief geologist David Close says the company could potentially resume a shale gas drilling program in the Beetaloo Basin in 2019 if the Northern Territory relaxes its ban on hydraulic fracturing. It has been estimated that the Beetaloo Basin region accounts for about 70 per cent of the NT’s shale gas reserves. Saul Kavonic of Wood Mackenzie says production of commercial volumes of shale gas in the Beetaloo Basin is unlikely before 2025 even if the ban on fracking is scrapped.

CORPORATES
ORIGIN ENERGY LIMITED – ASX ORG, WOOD MACKENZIE, SASOL LIMITED, FALCON OIL AND GAS LIMITED

AGL makes a ‘stack of profit’ from coal

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Original article by Mark Ludlow
The Australian Financial Review – Page: 11 : 23-Jun-17

Whitehaven Coal CEO Paul Flynn says Professor Alan Finkel’s predictions concerning the reduced cost of generating electricity from renewable energy sources are ambitious. Flynn, also used a speech at a Brisbane Mining Club function to lambast firms such as AGL Energy for promoting their commitment to renewable energy in their advertising, while noting that they will still be earning profits from electricity generated from coal-fired power stations for some years to come.

CORPORATES
WHITEHAVEN COAL LIMITED – ASX WHC, BRISBANE MINING CLUB PTY LTD, AGL ENERGY LIMITED – ASX AGL, MINERALS COUNCIL OF AUSTRALIA, NATIONAL PRESS CLUB (AUSTRALIA), AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

Gorgon to make case for carbon capture

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 20 : 22-Jun-17

Global Carbon Capture & Storage Institute CEO Brad Page says Chevron’s Gorgon LNG project will prove the business case for carbon capture and storage technology. The CCS component of the Gorgon project will reduce Gorgon’s greenhouse gas emissions by around 40 per cent by using a saline aquifer to store carbon dioxide. Page notes that the estimated $A2bn cost of the CCS project is insignificant compared with the overall cost of Gorgon, which has blown out from $US37bn to $US54bn.

CORPORATES
GLOBAL CARBON CAPTURE AND STORAGE INSTITUTE LIMITED, CHEVRON CORPORATION, GORGON LNG, INTERNATIONAL ENERGY AGENCY, ROYAL DUTCH SHELL PLC

Supplies are plentiful but shortage of ‘cheap gas’: UBS

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 29 : 22-Jun-17

Nik Burns of UBS says the Federal Government’s Australian Domestic Gas Security Mechanism is unlikely to be triggered in 2018. He does not expect a gas shortage on the east coast, as the Australia Pacific LNG and Queensland Curtis LNG projects have sufficient surplus gas to supply the domestic market. However, Burns adds that these projects will not increase domestic supply unless local gas users are prepared to pay a similar price to the spot price.

CORPORATES
UBS HOLDINGS PTY LTD, AUSTRALIA PACIFIC LNG LIMITED, QUEENSLAND CURTIS LNG PTY LTD, ORIGIN ENERGY LIMITED – ASX ORG, ROYAL DUTCH SHELL PLC, GLADSTONE LNG PTY LTD, SANTOS LIMITED – ASX STO, AUSTRALIAN ENERGY MARKET OPERATOR LIMITED

Santos export fears overdone, says Citigroup

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 17 : 21-Jun-17

Shares in Santos closed two per cent lower at $A2.98 on 20 June 2017, after the Federal Government committed to implementing the Australian Domestic Gas Security Mechanism. However, Citigroup believes that LNG export controls may have less near-term impact on Santos and its Gladstone LNG venture than has been forecast. Citigroup also suggests that the ADGSM may also prompt Santos and its partners in the project to develop new gas fields instead of sourcing gas from third parties.

CORPORATES
SANTOS LIMITED – ASX STO, GLADSTONE LNG PTY LTD, CITIGROUP PTY LTD, AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE, AUSTRALIAN ENERGY MARKET OPERATOR LIMITED, MACQUARIE RESEARCH EQUITIES, CREDIT SUISSE (AUSTRALIA) LIMITED

20pc power price shock hits home; Energy Australia urges Finkel blueprint

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Original article by Ben Potter
The Australian Financial Review – Page: 1 : 16-Jun-17

Energy Australia has announced large price increases for its gas and electricity customers in New South Wales and South Australia. The increases – of up to 20 per cent – take effect as from 1 July 2017, and come as the Turnbull government deliberates on whether to adopt the Finkel’s energy review recommendations. Kim Clarke, Energy Australia’s chief customer officer, says the Finkel review represents a good "blueprint" for Australia’s future energy needs.

CORPORATES
ENERGYAUSTRALIA PTY LTD, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF THE ENVIRONMENT AND ENERGY, AGL ENERGY LIMITED – ASX AGL, ACTEWAGL, CARBON CONSERVATION PTY LTD, ST VINCENT DE PAUL SOCIETY