Coal's Uncertain Future and Glencore's Output Cap
It's been weird in the coal world in recent days, with the world's largest shipper saying it's capping output, biggest seaborne buyer China putting restrictions on some imports, and an Australian court saying mines must factor in climate change.Throw in an executive at a major Indian coal-fired power generator saying his company won't build any new plants as coal can't compete with renewables, and it's little surprise that environmental activists may be tempted to pop champagne corks.The common theme at work is that coal is finding it harder to secure a long-term future in the world's energy mix.
Santos Broadens Offshore Exploration in N.Australia
The oil and gas producer in the Asia-Pacific region Santos has struck a joint venture (JV) agreement with fellow-listed Beach Energy to partner over four exploration permits in the Bonaparte basin, offshore northern Australia.The two companies will each hold a 50% JV interest in the four permits, with Santos acting as operator.Santos’ position in the Bonaparte basin already includes an 11.5% interest in the Bayu-Undan gas-condensate field and the Darwin LNG plant, as well as a 25% interest in the Barossa field…
GasLog: LNG Demand Grew 9% in 2018
Liquefied natural gas (LNG) is expected to have increased by 9%, from 288 million tonnes per annum (mtpa) in 2017 to 313 mtpa in 2018, said GasLog.The Monaco-based owner, operator and manager of LNG carriers said in a stock exchange announcement that China’s LNG imports increased by approximately 16 mtpa, or 41%, to 54 mtpa in 2018, driven mainly by continued coal-to-gas switching in the industrial, commercial and residential sectors.South Korea, Pakistan, Thailand and Mexico also experienced strong growth in LNG imports during 2018.
Chevron in LNG Supply Deal with GS Caltex
American multinational energy corporation Chevron signed a new sales and purchase agreement with South Korean oil refiner GS Caltex Corporation for the delivery of liquefied natural gas (LNG) to South Korea.As a joint venture between Chevron and GS Energy, GS Caltex has signed a long-term agreement and will begin receiving LNG in October 2019, said a press release from the U.S. oil and gas major.Chevron’s President of Global Gas, Hugh Connett stated the agreement is another indication of the…
Woodside Raises Dividend
Australia's Woodside Petroleum Ltd surprised investors with a fat dividend on Thursday after reporting a 36-percent percent rise in annual profit, underpinned by stronger oil prices.The higher-than-expected payout came after shareholders stumped up $2.5 billion to buy new shares a year ago at a time when Australia's biggest independent oil and gas producer expected oil prices to average $65 a barrel.By the end of the year it was flush with cash as oil prices had averaged $71 and the Wheatstone liquefied natural gas (LNG) project…
Oceanic Breeze Brings LNG to Japan
Japanese energy company INPEX Corporation announced that the LNG Tanker Oceanic Breeze called for the first time at INPEX’s Naoetsu LNG Terminal located in Joetsu City, Niigata Prefecture, Japan.The tanker has delivered a cargo of liquefied natural gas (LNG) from the INPEX-operated Ichthys LNG project in Australia.Oceanic Breeze is owned by Oceanic Breeze LNG Transport S. A. (OBLT), a joint venture between INPEX Shipping Co., Ltd. (INPEX Shipping) (30%) and Kawasaki Kisen Kaisha Ltd. (K-Line) (70%)…
INPEX Selects NAPA for LNG Carrier Fleet
Japan's largest oil and gas exploration and production company INPEX Corporation has installed ClassNK-NAPA GREEN for monitoring operations on three of its liquefied natural gas (LNG) carriers.NAPA said that Inpex awarded a deal to the company for the provision of a solution for monitoring and follow-up of ship operations on two LNG carriers built to service the Ichthys project and one LNG carrier for Shell’s Prelude FLNG project.With the core motivation of accurately verifying the technical performance of these highly complex carriers…
Offshore Mooring to Reach $1.1B by 2021
The global offshore mooring system market stood at US$0.93 bn in 2014 and is predicted to reach US$1.1 bn by 2021.It is predicted to expand at a CAGR of 3.60% from 2015 to 2021, revealed a new Transparency Market Research report.According to the report, the market for offshore mooring systems is propelled by the rising subsea production and exploration and the consistent introduction of technologically advanced products. In addition, factors such as the growing demand for energy and the rise in the prices of gas and oil have also stimulated the growth of the offshore mooring systems market.In addition…
Record Production Lifts Total's Profits
French energy major Total said its net adjusted profit rose 10 percent in the final quarter of 2018, lifting its full year earnings by more than a quarter after record oil and gas production.Total said on Thursday that output reached an all-time high of 2.8 million barrels of oil equivalent per day in 2018 thanks to the start-ups of various operations and increased production in Australia, Angola, Nigeria and Russia.It reported a 28 percent rise in full-year profit to $13.6 billion, following…
Shell Awards FEED Work for Crux
Wood and KBR,Inc. have secured a new multimillion dollar contract to deliver integrated front-end engineering design (FEED) for Shell Australia’s Crux project to build a not normally manned (NNM) platform and gas export pipeline located approximately 600km north of Broome, offshore Western Australia (WA).The Crux facilities will be a source of backfill gas supply to the Shell-operated Prelude floating liquefied natural gas (FLNG) facility. The remotely operated, minimum facilities NNM platform…
McDermott Winds FEED for Scarborough FPU
McDermott International, Inc. on Tuesday announced it has signed a contract with Woodside Energy Ltd. to undertake a front-end engineering and design (FEED) activities for a floating production unit (FPU) for the Scarborough field natural gas development in Western Australia.McDermott’s center of excellence in The Hague, Netherlands, will lead the study and early engineering. Upon completion, the contract includes the option to progress to an engineering, procurement, construction and installation…
Oil Falls on U.S. Factory Data
Oil prices fell on Tuesday, a day after data showing a decline in U.S. factory orders dragged both benchmarks down from 2019 highs.Despite the slide, investors expect U.S. sanctions on Venezuela and production cuts led by OPEC to head off a glut this year, buoying prices.U.S. crude futures were down 50 cents, or 0.9 percent, at $54.06 a barrel by 1400 GMT. They touched their highest in more than two months at $55.75 the previous day.Brent crude futures were down 46 cents, or 0.7 percent, at $62.05 a barrel…
FLNG Market Oversupplied
Floating liquefied natural gas (FLNG) projects may have peaked already amid intensifying competition in the LNG space, a review of the global FLNG sector released by global natural resources consultancy Wood Mackenzie has suggested.In a world requiring tight capital discipline, FLNG offers lower capital investment and manageable costs, particularly in frontier regions. But Wood Mackenzie indicated that future project opportunities are in short supply as FLNG competes for capital and buyers in a busy LNG market.
Santos Sees Production Surge on Quadrant Acquisition
Santos Ltd, Australia's No. 2 independent gas producer, on Thursday said it expects 2019 production to rise by up to 32 percent boosted by the acquisition of Quadrant assets.The company expects to churn out 71 million to 78 million barrels of oil equivalent (mmboe) in 2019, Santos said in a statement.UBS estimates 2019 production to be 73.7 mmboe.The company posted annual production of 58.9 mmboe, beating its production guidance of 56 mmboe to 58 mmboe and in line with a Macquarie estimate.The…
Santos Boosts Van Gogh Production
Australian producer Santos announced Tuesday that it has achieved first oil from the Van Gogh infill project, marking the completion of a two-well program to increase production from the field.The Santos-operated Van Gogh field is one of three subsea oil field developments located in the Exmouth Basin, offshore Western Australia, which tie into the floating production, storage and offloading vessel (FPSO), the Ningaloo Vision.The infill project began in September and involved drilling and completing…
Oil Climbs as OPEC Output Drop Eases Concerns About Glut
Oil prices rose on Friday after an OPEC report showed its production fell sharply last month, easing some concerns about prolonged oversupply.Brent crude was up 48 cents, or 0.78 percent, at $61.66 a barrel at 1450 GMT. Brent has risen around 2 percent this week, its third straight week of gains.U.S. West Texas Intermediate (WTI) crude futures were up 33 cents, or 0.63 percent, at $52.40 per barrel.The Organization of the Petroleum Exporting Countries along with other producers including Russia agreed last year to output cuts starting from Jan.
Woodside Boosts Spending for Next Leg of Growth
Australia's Woodside Petroleum Ltd on Thursday flagged higher-than-expected investment spending for 2019 as it steps up early work on the two big natural gas developments that will drive its growth in the next decade.Australia's largest independent gas and oil producer plans to spend between $1.6 billion and $1.7 billion in 2019 on projects, significantly higher than an estimate from UBS of $1.2 billion.At the same time it is roughly halving exploration spending from $273 million last year."The…
Subsea Integration Alliance Wins Esso Contract
Exxon Mobil subsidiary Esso Australia Pty Ltd. awarded integrated subsea engineering, procurement, construction, installation and commissioning (EPCIC) contracts to Subsea Integration Alliance, which comprises OneSubsea, a Schlumberger company, and Subsea 7.The work scope includes engineering, procurement, construction and installation of two production wells in a water depth of approximately 45m that will be tied-back to the Longford onshore gas plants. Project management and engineering will be provided by OneSubsea and Subsea 7 from local offices in Perth and Melbourne, Australia.
Woodside Awards Scarborough FEED Contracts
Australian independent oil and gas company Woodside said Wednesday it has awarded four contracts for front-end engineering design (FEED) activities for the proposed US$11 billion Scarborough Project offshore Western Australia.Each contract was awarded and will be funded initially by Woodside on a 100% basis, without financial support from 25% joint venture partner BHP.McDermott Australia Pty Ltd has been awarded a contract to undertake engineering studies for the floating production unit, which includes the option to progress to an engineering…
Gorgon LNG Plant in Australia Shuts Train 3
Chevron Corp's Gorgon liquefied natural gas (LNG) project has temporarily halted train 3 to address a mechanical issue, a company spokesman told Reuters on Wednesday.The cause of the halt is being investigated, he said."There is no interruption to trains 1 and 2 and we continue to produce LNG and load cargoes," he said.The outage is expected to boost Asian LNG prices that are currently at an eight-month low and their weakest for this time of year in at least two years due to a mild winter in East Asia…
