LIQUEFIED NATURAL GAS INDUSTRY – AUSTRALIA

LNG exports post $1.9bn record

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Original article by Matt Chambers
The Australian – Page: 19 & 22 : 30-Jan-17

Data from the Australian Bureau of Statistics shows that the nation’s revenue from LNG exports rose from $US1.39bn in July 2016 to $A1.9bn in November. Meanwhile, the three LNG plants in Queensland shipped 1.75 million tonnes via the Port of Gladstone in December, compared with 1.5 million tonnes in October. Chevron CEO John Watson has indicated that the second production train at the Gorgon LNG project has reached 90 per cent of capacity, while the third train is likely to commence production in the June 2017 quarter.

CORPORATES
CHEVRON CORPORATION, GORGON LNG, AUSTRALIAN BUREAU OF STATISTICS, ORIGIN ENERGY LIMITED – ASX ORG, AUSTRALIA PACIFIC LNG LIMITED, CONOCOPHILLIPS, PORT OF GLADSTONE, AUSTRALIAN ENERGY MARKET OPERATOR LIMITED, AUSTRALIA. DEPT OF THE TREASURY, BP PLC, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT

Gas crunch bites with price hikes

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 1 : 6-Jan-17

Manufacturers have raised concerns about imminent shortages in gas supply and their impact on prices. Mark Chellew, chairman of Manufacturing Australia, says a period of between mid-2017 and late 2018 will be particularly difficult. According to EnergyQuest, a supply shortfall will reach 172 petajoules in 2020 and 205 petajoules in 2025.

CORPORATES
MANUFACTURING AUSTRALIA LIMITED, ENERGYQUEST PTY LTD, AUSTRALIAN ENERGY MARKET OPERATOR LIMITED, VICTORIA WOOL PROCESSORS, ENERGYAUSTRALIA PTY LTD, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION

End-year cyclone threat for miners, LNG producers

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Original article by Peter Ker
The Australian Financial Review – Page: 4 : 19-Dec-16

The Bureau of Meteorology has warned that there is the potential for a tropical cyclone to hit Western Australia’s north-west coast prior to Christmas. The bureau has advised iron ore and LNG producers to be alert for a possible cyclone, but stresses that it is too soon to predict whether this will occur. Cyclone Stan disrupted the Pilbara’s iron ore exports in January.

CORPORATES
AUSTRALIA. BUREAU OF METEOROLOGY, RIO TINTO LIMITED – ASX RIO, BHP BILLITON LIMITED – ASX BHP, FORTESCUE METALS GROUP LIMITED – ASX FMG, ROBE RIVER IRON ASSOCIATES, MITSUI AND COMPANY (AUSTRALIA) LIMITED, NIPPON STEEL AND SUMITOMO METAL CORPORATION

Santos surprises with $1.5b capital raising

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 17 : 15-Dec-16

Australian-listed oil and gas producer Santos will issue new shares at $A4.06 apiece in a $A1.5bn equity raising. It will comprise a $A1.04bn institutional placement and a $A500m share purchase plan for existing shareholders. Santos had previously raised some $A3bn in late 2015. Santos recently revealed plans to shift non-core assets to a separate division in order to focus on its key projects. The group’s shares closed at $A4.41 on 14 December 2016.

CORPORATES
SANTOS LIMITED – ASX STO, DEUTSCHE BANK AG, MORGAN STANLEY AUSTRALIA LIMITED, ALPHINITY INVESTMENT MANAGEMENT PTY LTD, JB NORTH AND COMPANY PTY LTD

Santos takes ‘sweat or exit’ action

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 15 & 18 : 9-Dec-16

Australian-listed oil and gas producer Santos aims to slash its net debt by $US1.5bn ($A2bn) by 2019 as part of a restructuring program. This will including moving non-core assets to a holding company, allowing the group to focus on five key growth assets. These include the Gladstone LNG project, its Cooper Basin gas assets and the Papua New Guinea LNG venture. Santos will also make its gas processing facilities available to rival gas producers. The non-core assets could potentially be sold in the future.

CORPORATES
SANTOS LIMITED – ASX STO, ORIGIN ENERGY LIMITED – ASX ORG, ENN HOLDINGS, AWE LIMITED – ASX AWE, AUSBIL INVESTMENT MANAGEMENT LIMITED, CLOUGH LIMITED, RBC CAPITAL MARKETS

Producers spot better returns

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Original article by Matt Chambers
The Australian – Page: 21 : 6-Dec-16

Data from EnergyQuest shows that the spot price of gas in Adelaide rose to nearly $A10 per gigajoule in the September 2016 quarter, while the spot price in Sydney and Brisbane also rose. In contrast, the LNG netback price at the Wallumbilla processing hub in Queensland fell to around $A6 per gigajoule. EnergyQuest expects LNG producers to capitalise on the rise in gas prices by redirecting more of their output to the domestic market.

CORPORATES
ENERGYQUEST PTY LTD, QUEENSLAND CURTIS LNG PTY LTD, ROYAL DUTCH SHELL PLC

Mega-project days over: Exxon

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 15 : 1-Dec-16

ExxonMobil Australia chairman Richard Owen says the energy giant will consider options for undertaking a staged development of the Scarborough gas field. He has told a business lunch in Sydney that ExxonMobil is likely to examine ways to start delivering cash flows from new oil and gas projects at an earlier stage of their development, rather than the so-called "mega-project" approach of recent years. The Gorgon LNG has commenced shipments more than six years after construction commenced.

CORPORATES
EXXONMOBIL CORPORATION, WOODSIDE PETROLEUM LIMITED – ASX WPL, CHEVRON CORPORATION, GORGON PTY LTD

Mega-project days over: Exxon

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 15 : 1-Dec-16

ExxonMobil Australia chairman Richard Owen says the energy giant will consider options for undertaking a staged development of the Scarborough gas field. He has told a business lunch in Sydney that ExxonMobil is likely to examine ways to start delivering cash flows from new oil and gas projects at an earlier stage of their development, rather than the so-called "mega-project" approach of recent years. The Gorgon LNG has commenced shipments more than six years after construction commenced.

CORPORATES
EXXONMOBIL CORPORATION, WOODSIDE PETROLEUM LIMITED – ASX WPL, CHEVRON CORPORATION, GORGON PTY LTD

LNG giants face bill for underpaid royalties

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Original article by Paul Garvey
The Australian – Page: 19 & 22 : 29-Nov-16

The royalty regime for the North West Shelf LNG project is under scrutiny following a review by the Australian National Audit Office. Amongst other things, the ANAO concluded that there are deficiencies in the way royalty payments are calculated, while the project’s partners may not be entitled to all of the deductions which they have claimed. A spokeswoman for Woodside Petroleum says the company has strict compliance procedures regarding royalty payments, and any underpayment is unlikely to exceed $A11.6m.

CORPORATES
WOODSIDE PETROLEUM LIMITED – ASX WPL, NORTH WEST SHELF LNG PTY LTD, AUSTRALIAN NATIONAL AUDIT OFFICE, AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE, WESTERN AUSTRALIA. DEPT OF MINES AND PETROLEUM, BHP BILLITON LIMITED – ASX BHP, BP PLC, CHEVRON CORPORATION, ROYAL DUTCH SHELL PLC, JAPAN AUSTRALIA LNG PTY LTD, MITSUBISHI CORPORATION, MITSUI AND COMPANY LIMITED

AGL mulls gas import to beat supply crunch

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Original article by Matt Chambers
The Australian – Page: 19 & 22 : 15-Nov-16

The high domestic price of gas in Australia’s southeastern states and supply constraints may prompt AGL Energy to source natural gas from regions such as Asia, Europe or the Middle East. AGL will undertake a feasibility study on the proposal to build an LNG import terminal and processing facility, which would capitalise on a global oversupply of LNG. Shell Australia chairman Andrew Smith put forward a similar suggestion earlier in 2016.

CORPORATES
AGL ENERGY LIMITED – ASX AGL, SHELL COMPANY OF AUSTRALIA LIMITED