LIQUEFIED NATURAL GAS INDUSTRY – AUSTRALIA

Santos sailing steady ship but gas delay on horizon

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Original article by Perry Williams
The Weekend Australian – Page: 28 : 4-Apr-20

Oil and gas group Santos remains confident that its $3.6bn Narrabri gas project in New South Wales will receive state government approval, but it has conceded that this may not occur before mid-2020 due to the pandemic. Meanwhile, Santos chairman Keith Spence has told the group’s annual meeting that it has no plans to undertake a capital raising at present, despite the recent slump in the crude oil price. Santos has already delayed several growth projects.

CORPORATES
SANTOS LIMITED – ASX STO

Oil M&A looms as Woodside clears decks; FAR in trouble

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 17 & 22 : 31-Mar-20

James Byrne of Citibank is among the analysts who expect Woodside Petroleum to seek acquisitions after putting its key growth projects on hold. He notes that the oil and gas group has $US4.9bn in cash and $US7.9bn in liquidity, and it may be prepared to temporarily lose its BBB+ credit rating if the right acquisition emerges. Meanwhile, Far Limited has advised that the sharp decline in the crude oil price in recent months means that it cannot finalise new debt facilities to finance its share of the Woodside-led Sangomar oil project in Senegal.

CORPORATES
WOODSIDE PETROLEUM LIMITED – ASX WPL, FAR LIMITED – ASX FAR, CITIBANK PTY LTD

Gas pressure rises as Asian demand cools

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Original article by Perry Williams
The Australian – Page: 17 & 20 : 17-Feb-20

Australian LNG producers are facing a tougher trading environment in 2020, according to the Australian Energy Regulator, with Asian buyers seeking better deals and reducing the volumes they purchase. Australia supplied 49 per cent of China’s LNG needs in 2019, but demand for LNG in China in 2020 may now only increase by four per cent, compared to a previous forecast of 13 per cent. However, falling Asian LNG spot prices could be good news for Australian gas consumers, according to the AER, as it gives them more bargaining power when striking short-term gas deals with gas exporters.

CORPORATES
AUSTRALIAN ENERGY REGULATOR

Outdated tax gives LNG away for free

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Original article by Patrick Commins
The Australian – Page: 4 : 10-Feb-20

Treasurer Josh Frydenberg has downplayed speculation that the federal government will make changes to the Petroleum Resources Rent Tax. However, Jason Ward from the Centre for International Corporate Tax Accountability & Research says changes to the PRRT are needed as it was originally designed for the oil industry, and Australia’s booming LNG industry means the tax is no longer "fit for purpose". The nation is now the world’s biggest exporter of LNG.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, CENTRE FOR INTERNATIONAL CORPORATE TAX ACCOUNTABILITY AND RESEARCH, AUSTRALIAN LABOR PARTY

Australia tops LNG exports, worth $49bn

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Original article by Nick Evans
The Australian – Page: 13 & 18 : 7-Jan-20

Data from EnergyQuest shows that Australia exported 77.5 million tonnes of LNG in 2019, overtaking Qatar as the world’s biggest exporter. Qatar had been forecast to export 75 million tonnes in 2019, although EnergyQuest notes that the Middle Eastern nation has yet to release its official export figures. The US exported 34.3 million tonnes of LNG in 2019. Meanwhile, EnergyQuest notes that Australia’s total LNG output capacity is 88 million tonnes at present.

CORPORATES
ENERGYQUEST PTY LTD, WOODSIDE PETROLEUM LIMITED – ASX WPL, WESTERN AUSTRALIA. ENVIRONMENTAL PROTECTION AUTHORITY, AUSTRALIA. NATIONAL OFFSHORE PETROLEUM SAFETY AND ENVIRONMENTAL MANAGEMENT AUTHORITY, BHP GROUP LIMITED – ASX BHP, ROYAL DUTCH SHELL PLC, EQUINOR ASA, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN GREENS

Santos slumps after rating downgrade

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 17 : 10-Dec-14

Investors have responded bearishly to a move by Standard & Poor’s to reduce the credit rating of Australian-listed Santos from "BBB+" to "BBB". Santos shares closed $A0.60 lower at $A7.70 on 9 December 2014, after reaching an intra-day low of $A7.46. The oil and gas producer has indicated that the ratings downgrade will have no impact on its finances, and notes that it has a healthy balance sheet

CORPORATES
SANTOS LIMITED – ASX STO, STANDARD AND POOR’S (AUSTRALIA) PTY LTD, JP MORGAN AUSTRALIA LIMITED, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB

Woodside mulls $40bn projects

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Original article by Perry Williams
The Australian – Page: 20 : 22-Nov-19

Woodside Petroleum expects to make final investment decisions on its Browse and Scarborough LNG gas projects within 18 months. CEO Peter Coleman says these decisions will be made in an increasingly competitive global environment for LNG producers. He adds that Australia is also competing with countries that have lower corporate tax regimes, less regulation and more competitive labour costs.

CORPORATES
WOODSIDE PETROLEUM LIMITED – ASX WPL, BP AUSTRALIA LIMITED, ROYAL DUTCH SHELL PLC, JAPAN AUSTRALIA LNG PTY LTD, BHP GROUP LIMITED – ASX BHP, CHEVRON CORPORATION

Woodside tests patience on Scarborough

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 15 & 20 : 20-Nov-19

The recently-announced 52 per cent increase in the resource estimate for the Scarborough gas field may prompt Woodside Petroleum to retain more of its stake in the project. Woodside had previously flagged plans to reduce its 75 per cent stake in Scarborough. However, CEO Peter Coleman says Woodside still intends to reduce its stake in the Pluto 2 LNG plant by up to 50 per cent, although it is not an immediate priority. A deal with BHP to process gas from the Scarborough field via the Pluto plant is expected to be finalised by March.

CORPORATES
WOODSIDE PETROLEUM LIMITED – ASX WPL, BHP GROUP LIMITED – ASX BHP, CHEVRON CORPORATION, AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE, ALLAN GRAY AUSTRALIA PTY LTD, FAR LIMITED – ASX FAR, CONOCOPHILLIPS

Santos seizes Australian oil and gas crown

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Original article by Paul Garvey
The Australian – Page: 19 : 15-Oct-19

Santos expects a $US1.39bn deal to acquire the northern Australia assets of ConocoPhillips to boost its earnings by about 16 per cent. The deal includes the US group’s controlling stake in the Darwin LNG plant, as well as its interests in the Bayu-Undan, Barossa and Poseidon gas fields. Santos will now surpass Woodside Petroleum as Australia’s biggest oil and gas producer. ConocoPhillips still has a 37.5 per cent stake in the Australia Pacific LNG project in Queensland.

CORPORATES
SANTOS LIMITED – ASX STO, CONOCOPHILLIPS, WOODSIDE PETROLEUM LIMITED – ASX WPL, QUADRANT ENERGY PTY LTD, RBC CAPITAL MARKETS, WOOD MACKENZIE, JP MORGAN AUSTRALIA LIMITED

LNG projects not so polluting: CSIRO

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Original article by Mark Ludlow
The Australian Financial Review – Page: 8 : 29-Jul-19

Greenhouse gas emissions created by coal seam gas LNG projects in Queensland are not as high as previously thought, according to a report to be released by the CSIRO on 29 July. The CSIRO also states that Australia’s carbon emissions could be significantly reduced if the gas produced by Queensland’s LNG projects was used to generate electricity in Australia, rather than exported. However, this is on the proviso that it replaces existing coal-fired power generation.

CORPORATES
CSIRO