LIQUEFIED NATURAL GAS INDUSTRY – AUSTRALIA

Exporter warning over gas shortfall

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Original article by Joe Kelly
The Australian – Page: 6 : 24-Jul-17

Resources Minister Matt Canavan will advise LNG exporters on 24 July 2017 that he may trigger the Australian Domestic Gas Security Mechanism in 2018. Doing so would mean the Federal Government is not confident that there is enough gas to meet domestic needs, and it would take appropriate steps to ensure this does not happen. Fatih Birol, the head of the International Energy Agency, wants Australian states that have imposed restrictions on conventional and unconventional gas exploration to reconsider their stance.

CORPORATES
AUSTRALIA. DEPT OF THE ENVIRONMENT AND ENERGY, INTERNATIONAL ENERGY AGENCY, AUSTRALIAN LABOR PARTY

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

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

Lobby urges tighter curbs on LNG exports

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Original article by Matt Chambers
The Australian – Page: 20 : 15-Jun-17

Manufacturing Australia has warned that the Federal Government’s proposed LNG export controls are unlikely to have much impact on gas prices on the east coast. Its submission to the Government has backed the Australian Domestic Gas Security Mechanism, but it argues that the resources minister should be given greater power to intervene in the gas market. Meanwhile, Fereidun Fesharaki of FGE has forecast a sharp fall in the price of crude oil, which will in turn impact on LNG producers given than the LNG price is linked to the oil price.

CORPORATES
MANUFACTURING AUSTRALIA LIMITED, FACTS GLOBAL ENERGY GROUP OF COMPANIES, AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE, BLUESCOPE STEEL LIMITED – ASX BSL, BORAL LIMITED – ASX BLD, INCITEC PIVOT LIMITED – ASX IPL, CSR LIMITED – ASX CSR, SANTOS LIMITED – ASX STO, GLADSTONE LNG PTY LTD

Prices to ignite gas export controls

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Original article by Matt Chambers
The Australian – Page: 19 & 32 : 9-Jun-17

Federal Resources Minister Matthew Canavan will brief the gas industry on the draft rules for the Australian Domestic Gas Security Mechanism on 9 June 2017. The draft rules show that the ADGSM will give Canavan and any future resources minister the power to restrict LNG exports if there is a domestic supply shortfall. Macquarie Group has criticised the limited detail in the draft rules, particularly with regard to how the gas price will be determined for the purposes of imposing export controls.

CORPORATES
AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE, MACQUARIE GROUP LIMITED – ASX MQG, SANTOS LIMITED – ASX STO, GLADSTONE LNG PTY LTD, ORIGIN ENERGY LIMITED – ASX ORG, AUSTRALIA PACIFIC LNG LIMITED, ROYAL DUTCH SHELL PLC, QUEENSLAND CURTIS LNG PTY LTD, AUSTRALIAN PETROLEUM PRODUCTION AND EXPLORATION ASSOCIATION LIMITED, AUSTRALIAN ENERGY MARKET OPERATOR LIMITED, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, TOTAL SA, PETRONAS GAS BHD, KOREA GAS CORPORATION

AGL bid to import LNG heats up

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Original article by Matt Chambers
The Australian – Page: 17 & 18 : 5-Jun-17

AGL Energy is expected to name the preferred site for its proposed LNG import terminal within a matter of weeks. Sites in South Australia, New South Wales and Victoria are all said to be under consideration for the terminal, which is expected to cost between $200 million and $A300 million, with Western Port Bay in Victoria considered a possible option. AGL CEO Andy Vesey is understood to want to commence construction of the terminal in 2019, and for it to be operational in 2020-21.

CORPORATES
AGL ENERGY LIMITED – ASX AGL, COUNCIL OF AUSTRALIAN GOVERNMENTS, CHENIERE ENERGY INCORPORATED, QIC LIMITED, ENERGYAUSTRALIA PTY LTD, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

Export rules will hit investment: Barnett

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Original article by Paul Garvey
The Australian – Page: 20 : 4-May-17

Former Western Australian premier Colin Barnett has questioned the merits of the Federal Government’s plans to impose LNG export controls. He warns that the policy will do little to address the energy crisis on the nation’s east coast. Barnett argues that it will instead harm Australia’s international reputation and increase sovereign risk, which will in turn impact on future investment in Australia.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, LIBERAL PARTY OF WESTERN AUSTRALIA, SANTOS LIMITED – ASX STO, GLADSTONE LNG PTY LTD, AUSTRALIAN LABOR PARTY, WESTERN AUSTRALIA. DEPT OF THE PREMIER AND CABINET

Chevron tax ruling to ‘hit investment’

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Original article by Matt Chambers
The Australian – Page: 22 : 3-May-17

Chevron’s chief financial officer, Patricia Yarrington, has told investors in the US that the oil and gas group may appeal a Federal Court of Australia ruling on the tax status of a $A2.5bn inter-company loan. She warned that the ruling will have implications for international transfer pricing guidelines, while it is likely to impact on future investment in Australia. However, Chevron’s Stephen Green has welcomed the findings of a review which recommended that any changes to the Petroleum Resource Rent Tax should not be retrospective.

CORPORATES
CHEVRON CORPORATION, CHEVRON AUSTRALIA PTY LTD, FEDERAL COURT OF AUSTRALIA, AUSTRALIAN TAXATION OFFICE

Santos warns ‘hot air’ inflating gas debate

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Original article by Leo Shanahan
The Australian – Page: 17 & 20 : 19-Apr-17

Executives from LNG producers will meet with Prime Minister Malcolm Turnbull on 19 April 2017. Santos CEO Kevin Gallagher has cautioned against government intervention to address the gas crisis on the east coast, arguing that it is not the role of governments to "pick winners and losers". He adds that lack of sufficient development of gas resources is the main cause of the crisis. Opposition Leader Bill Shorten believes that the government should step in to resolve the crisis, saying domestic gas users should be prioritised over export customers.

CORPORATES
SANTOS LIMITED – ASX STO, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN LABOR PARTY, GLADSTONE LNG PTY LTD, ORIGIN ENERGY LIMITED – ASX ORG, AUSTRALIA PACIFIC LNG LIMITED, ROYAL DUTCH SHELL PLC, QUEENSLAND CURTIS LNG PTY LTD