ENERGY INDUSTRIES – AUSTRALIA

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

Forrest to drive gas import terminal

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Original article by Perry Williams
The Australian – Page: 15 : 30-Oct-20

Mining magnate Andrew Forrest is set to proceed with a proposed LNG import terminal at Port Kembla in New South Wales. Sources have indicated that Forrest’s private company Squadron Energy is close to finalising a long-term lease at Port Kembla. Squadron recently bought out its Japanese partners in the project, and it has previously indicated that construction work could start by the end of 2020. A number of other LNG import projects have been proposed to address gas supply concerns in Australia’s eastern states.

CORPORATES
SQUADRON ENERGY PTY LTD

Canberra boost for Pilbara renewables

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Original article by Elouise Fowler
The Australian Financial Review – Page: 20 : 23-Oct-20

The proposed Asian Renewable Energy Hub in the Pilbara is set to be granted major project status by the federal government. The 6,500-square kilometre hub will use wind and solar power to produce zero-emission green hydrogen for the domestic and export markets. So-called clean hydrogen was identified as one of five priorities in the government’s low-emissions technology roadmap. A final investment decision on the $US36bn ($51bn) project is slated to be made by 2025.

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Big banks accused of climate hypocrisy

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Original article by James Fernyhough
The Australian Financial Review – Page: 20 : 8-Jul-20

Market Forces estimates that Australia’s four major banks have provided a combined $35.5bn worth of loans for fossil fuel projects since 2016. The activist group, which is affiliated with Friends of the Earth, contends that this is inconsistent with their commitment to the Paris climate agreement. National Australia Bank’s chief risk officer Shaun Dooley recently stated that the bank aims to assist business customers to transition away from fossil fuels, due to the economic impact of a complete and rapid withdrawal from the sector.

CORPORATES
MARKET FORCES, FRIENDS OF THE EARTH, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB

BHP’s fresh punt on Bass Strait

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Original article by Perry Williams
The Australian – Page: 13 & 20 : 3-Jul-20

BHP is one of several companies that provided funding for a 11,500sq km seismic survey in Bass Strait. This has prompted speculation that BHP may be hoping to make a new gas discovery as a prelude to divesting its 50 per cent stake in the Bass Strait joint venture. ExxonMobil is pressing ahead with plans to sell its stake; some observers believe that BHP’s non-operating stake could be more appealing to prospective buyers, and that it could potentially secure a deal before ExxonMobil.

CORPORATES
BHP GROUP LIMITED – ASX BHP, EXXONMOBIL CORPORATION

Aussie gas spurs Shell’s $12bn hit

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Original article by Perry Williams
The Australian – Page: 13 & 19 : 1-Jul-20

Macquarie expects more companies in Australia’s energy sector to announce writedowns in the second half of 2020, in the wake of the sharp fall in the crude oil price. Global energy giant Shell has advised of impairment charges of up to $US22bn; this includes a writedown of between $US8bn and $US9bn on its gas business, primarily due to its gas projects in Australia. The price of Brent crude is trading at around $US40 a barrel, and Macquarie notes that Australian energy producers typically use a price of $US70 to $US75 a barrel for impairment testing purposes.

CORPORATES
ROYAL DUTCH SHELL PLC, SHELL COMPANY OF AUSTRALIA LIMITED, MACQUARIE GROUP LIMITED – ASX MQG

Resources exports to turn south

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Original article by Perry Williams
The Australian – Page: 13 & 16 : 29-Jun-20

The federal government expects Australia’s mining and energy export earnings to fall 10 per cent to $263bn in 2020-21, after rising to a record $293bn in the 2019-20 financial year. The Department of Industry, Science, Energy & Resources has advised that iron ore export earnings are likely to have met its forecast of $100bn in 2019-20, given the resilience of the steel input’s price during the coronavirus pandemic. The department expects gold export earnings to reach a record $32bn in 2020-21, although revenue from LNG and coal exports is forecast to fall.

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