Australia's east Coast could experience gas shortages during winter, warns regulator
The Australian Competition Regulator warned on Thursday that the East Coast could be left with a shortage of gas during its winter period spanning from July to September if LNG producers export all their gas not contracted. In its quarterly update, the Australian Competition and Consumer Commission said that the east coast may face a shortage of 9 petajoules while the southern states might face a 40 PJ deficit. Winter in Australia is a time of peak demand for gas due to the colder temperatures. Unexpected weather events and power plant failures can also increase the risk of shortages.
Australia sues Exxon for falsely representing its local petrol brand
The Australian Competition Watchdog announced on Tuesday that it had taken Exxon Mobil’s local brand affiliate, which sells fuel at six of their branded petrol stations throughout Queensland, to court. Exxon Mobil, an American oil and gas company, owns and operates the Mobil brand. The Australian Competition and Consumer Commission alleges that Mobil misrepresented that "Mobil Synergy", its "Mobil Synergy", contained certain additives when it didn't. ACCC said that the firm also incorrectly claimed the fuel sold in these petrol stations was of a higher quality or composition than fuel sold at other locations, and had certain additional benefits.
HMC Capital, based in Australia, will buy Neoen’s Victoria portfolio at a price of $612 million
HMC Capital, an Australian asset manager, announced on Thursday that it would buy the renewable energy generation portfolio and storage in Victoria from France-based Neoen for A$950,000,000 ($611.61million). HMC stated that the portfolio will be a great addition to their energy transition platform. It includes four operational assets, each with a capacity of 652 megawatts (MW), and six development assets, with a combined capacity of over 2,800 MW. The deal will increase HMC's Assets Under Management (AUM) from A$17 billion to A$19.3 billion. It is expected that the deal will be positive for earnings after FY26.
Australian LNG producers could need to commit to more gas for the local market due to a possible shortage
Due to a decrease in supply forecasts for next year the Australian competition watchdog stated on Friday that liquefied gas producers (LNG) may have to commit more gas to the domestic rather than export market. According to the Australian Competition and Consumer Commission's quarterly report, the LNG supply surplus on Australia's east coast is expected to drop to 12 to 27 petajoules in the first quarter 2025. This is down from 26 to 35 petajoules forecasted in June. The lower forecast is due to an increase in exports contracted in the third quarter of 2009. Australia was the largest LNG exporter in the world until the U.S. overtook it last year.
Price is the Elephant in Australia's LNG, Domestic Gas Conundrum
Australia's threat to curb exports of liquefied natural gas (LNG) in order to ensure domestic supplies is another unwelcome pressure on a tight global market for the super-chilled fuel.But it's not an immediate threat, and it may also not materialize at all, depending on how the various players in Australia react to the government's planned action.What needs to be addressed effectively is the elephant in the room, namely the price at which natural gas is made available to domestic consumers relative to the price the gas companies can receive for their LNG on the global market.Australia vies with the United States and Qatar as the largest exporter
ExxonMobil, BHP End Australia Gas Sales JV
ExxonMobil, BHP avert court action by regulator. ExxonMobil Corp and BHP Billiton Ltd have agreed to end a nearly 50-year-old gas marketing joint venture in Australia, bowing to pressure from the nation's competition watchdog amid concerns about gas supply and soaring prices. The Australian Competition and Consumer Commission (ACCC) and the companies said on Monday they would start marketing their gas from the Gippsland Basin separately, starting in 2019. "The ACCC was concerned that the joint marketing arrangements were…
Australian Supply Crunch Squeezes LNG Exporters
Spot LNG exports in government's cross-hairs; ConocoPhillips, Origin, Shell now in the firing line. The Australian government on Monday warned that the country's east faced a worse-than-expected natural gas shortfall in 2018, but the competition watchdog said the gap could easily be filled by diverting uncontracted exports to the local market. It is now up to the government to decide by Nov. 1 whether to pull the trigger on its Australian Domestic Gas Security Mechanism, which allows it to curb liquefied natural gas (LNG) exports from the nation's east coast if it determines there will be a shortfall in any year.
BP, Woolworths Join Forces in Australia
* BP will be establishing a strategic partnership with Woolworths, one of Australia’s largest supermarket retailers. The agreement includes BP acquiring, rebranding and operating Woolworths’ existing 527 fuel and convenience sites, as well as an additional 16 sites currently under construction, across Australia for a total consideration of US$1.3 billion. * A new fuel and convenience offer, Metro at BP, will be the first of its kind for Australia’s growing convenience sector, bringing together BP’s quality fuels, Woolworths’ Everyday Rewards, fuel discount dockets and a new range of high-quality, ready-to-eat and take home fresh food products.
AEMC Gas Market Report Highlights Need for Action
Increasing the supply and affordability of natural gas is critical to developing a genuinely national strategy to transition Australia to a cleaner energy future. APPEA chief executive Dr Malcolm Roberts said the Australian Energy Market Commission’s report on the wholesale gas market released today provided many useful recommendations to increase the trade and transportation of gas on the east coast. “APPEA welcomes the release of the AEMC’s report and supports moves to improve transparency, efficiency and liquidity in the market,” Dr Roberts said. “But changes to the wholesale gas market can only achieve so much.
Australia looks to end ExxonMobil, BHP Joint Gas Sales
Australia's competition watchdog wants to break up a marketing joint venture between ExxonMobil Corp and BHP Billiton to help boost competition in the eastern Australian gas market, it said on Friday. Following a year-long investigation into gas supply concerns, the Australian Competition and Consumer Commission (ACCC) concluded suppliers have "taken advantage" of potentially lower gas supply to eastern Australia end-users to raise prices and place onerous conditions on buyers. The study also found that pipeline operators in the region exercised market power to implement monopoly pricing.
ACCC Approves Shell, BG Merger
The Australian Competition and Consumer Commission will not oppose the proposed acquisition by Royal Dutch Shell (Shell) of BG Group (BG). “The ACCC’s view is that the proposed acquisition would be unlikely to substantially lessen competition in the wholesale natural gas market, in either Queensland or eastern Australia more broadly,” ACCC Chairman Rod Sims said. The ACCC considered whether the proposed acquisition would reduce the supply of gas, or reduce competition to supply gas, to domestic customers by aligning Shell’s interest in Arrow Energy with BG’s LNG facilities in Queensland.
BUZZ: Shell/BG Spread Narrows after Aussie Approval
Investor confidence in Shell's proposed $70 billion acquisition of BG Group rose on Thursday after the merger won a key approval from Australian regulators. The premium of Shell's combined cash and share offer to BG shares narrowed to below 9 percent on Thursday, according to Reuters data. The merger still requires the green light from Chinese regulator MOFCOM. "The Australian approval is good news for the deal, but I would have expected [the spread] to narrow even more. Spread has been a popular pair trade for merger/arb funds, though the gap between the two share prices has remained relatively static.
Shell-BG deal May Shake up Rival's Australian LNG Plans
Tightening gas supplies in eastern Australia and a battle for gas to supply three liquefied natural gas plants will figure largely in watchdogs' review of Royal Dutch Shell's $70 billion takeover of BG Group. The deal may help break a deadlock over coal seam gas owned by Shell's Arrow Energy in Australia, which has been stuck in the ground after it scrapped plans to build an LNG plant in Queensland and entered talks to supply other LNG plants there. Shell hopes Australia's competition and foreign takeovers watchdogs will take that into account when weighing the potential benefits to the economy and consumers in the eastern states…
