Monday, May 25, 2020

Origin Energy News

Virus Lockdowns Pummel Global Gas Demand, Force LNG Output Cuts

Illustration; An LNG Carrier - Image by vladsv/AdobeStock

Lockdowns to slow the coronavirus pandemic are pummelling gas demand in the world's biggest buyers of liquefied natural gas (LNG), pushing Asia's spot prices to record lows and forcing some suppliers to start cutting output. Economies worldwide have ground to a halt as virus containment measures have taken their toll, slashing gas demand for power generation, heating, cooking, vehicles and chemical manufacture. The world's biggest LNG markets - Japan, China, South Korea, and India - are all seeing a drop in demand. Asia's spot LNG prices dropped to $1.85 per million British thermal units (mmBtu) last week, the lowest ever, as cargoes have flooded the market.

Origin Energy to Defer Shale Drilling in Australia

Illustration only; Image by FerrizFrames - AdobeStock

Origin Energy will defer shale exploration drilling in Australia's Northern Territory until the second half of this year in a bid to protect workers from a coronavirus, the company said on Thursday.Origin, operator of a joint venture with Dublin-based Falcon Oil & Gas Ltd, resumed drilling in the Beetaloo Basin last year after a three-year break when drilling was banned, and had hoped to get first test results around July this year.It has estimated the Beetaloo Basin contains 6.6 trillion cubic feet of potentially recoverable gas and is testing how much of that might be commercially recoverable."Given the unprecedented circumstances brought about by COVID-19…

ENN Starts First Phase of Zhoushan LNG Import Terminal

© philipus / Adobe Stock

Chinese gas distributor ENN Energy Holdings has begun operations at the first phase of its Zhoushan liquefied natural gas (LNG) import terminal, Vice President Ma Shenyuan said, speaking at a commencement ceremony for the terminal on Friday.As ENN aims to ramp up winter supplies in eastern China, the tanker 'Asia Integrity' docked at the Zhoushan terminal on the same day, bringing 145,000 cubic meters of LNG from Australia supplies to mark the launch of China's first privately-owned LNG facility.ENN has signed long-term deals including sales and purchase agreements with Chevron Corp and Australia's Origin Energy and also has an agreement to buy LNG from Total.

Australian States Delay Approving New Energy Policy

© John / Adobe Stock

Australia's states on Friday held off approving a plan to end more than a decade of climate and energy wars and spur investment in new power supply, disappointing industry seeking certainty on energy policy.Prime Minister Malcolm Turnbull is pushing a National Energy Guarantee (NEG) in a bid to bring down electricity prices, which have more than doubled over the past decade, and ensure supplies following a string of blackouts in 2016 and 2017.Energy Minister Josh Frydenberg said after a meeting with state governments that it had been "an important step forward" for the plan, which has been under negotiation for nearly a year.However, he criticized last minute demands

To Frack or Not to Frack? Australia's NatGas Dilemma

File Image (CREDIT: AdobeStock / © Shamtor)

The decision by the government of Australia's Northern Territory government to allow the resumption of fracking for natural gas will do little to immediately solve the country's energy woes, but will likely sharpen political battle lines. The territory's government said on April 17 that it has lifted a near two-year moratorium on hydraulic fracturing, known as fracking, accepting the recommendations of its own commission of inquiry into the practice. Northern Territory is a vast, sparsely-populated 1.4 million square kilometre (540,000 square mile) part of central and northern Australia, and home to two potentially rich basins of natural gas.

Xodus Strengthens APAC Team

Simon Allison (Photo: Xodus Group)

Xodus Group’s Perth office has won more than A$3.5 million (£2million) in new contracts over the last six months. Xodus’ Asia-Pacific (APAC) region has had significant success in the growth of its decommissioning business, both in Australia and South-East Asia, where the company has established relationships with several key players. The company has also enhanced its digital production optimization and monitoring tools. With the success, Xodus has increased its workforce locally and appointed Simon Allison as operations director for the APAC region.

Australian Supply Crunch Squeezes LNG Exporters

File Image: A typical LNG Carrier at Sea (CREDIT: MISC)

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.

ConocoPhillips looks to Aussie Transcontinental LNG Pipeline

File Image: A typical natural gas pipeline arrangement (CREDIT AdobeStock / (c) pisotckii)

ConocoPhillips will consider diverting natural gas from fields in northern Australia along a proposed transcontinental pipeline that would link directly to markets in the southeast, a senior executive told Reuters on Thursday. The U.S. oil major is also leaning towards developing the Barossa gas field offshore northern Australia, with a final decision due in early 2019, Kayleen Ewin, the company's vice president for sustainability, communications and external affairs, said in an interview. Ewin said the proposed transcontinental pipe would open Australia's domestic market for northern producers.

Fracking inquiry in Australia to start next week

Australia's Northern Territory government said a planned inquiry into the impact and possible risks of fracking will begin next week, and the practice will remain banned until it has been completed. The resource-rich Territory's newly elected centre-left Labor government banned fracking in September pending an investigation into whether the unconventional oil and gas drilling technique harms farm land or Aboriginal sites. Companies including Origin Energy and Armour Energy, hold exploration acreage in the region, which has also attracted international firms including South Africa's Sasol and Japan's Inpex.

World First to Combine Big Solar and Storage

Conergy’s media release and an artist’s impression of the plant

A world-leading project in far north Queensland is set to combine big battery storage and big solar to supply solar power after sundown and during peak usage times. The Australian Renewable Energy Agency (ARENA) is providing $17.4 million funding support for Conergy to build and operate a 10.8 MW (AC) solar photovoltaic (PV) plant with 1.4 MW / 5.3 MWh of lithium-ion battery storage near the town of Lakeland. ARENA CEO Ivor Frischknecht said the landmark project was well placed to work alongside ARENA’s major push to deploy more large-scale solar PV plants across Australia.

LNG Trade Routes in Flux as New Supply Brings Price Convergence

Australia's ascent to liquefied natural gas (LNG) producing giant is choking off trade routes from Atlantic to Pacific markets established after Japan's Fukushima nuclear disaster, giving rise to new routes. Mass cargo diversions from west to east earned traders fat margins as Asian markets commanded steep price premiums, partly driven by Japan's scramble to replace lost nuclear output. Waning Asian demand, major new supply from nearby Australia and converging global LNG prices are all putting a stop to long-haul diversions. At $0.40 per million British thermal units (mmBtu)…

LNG Could Follow Crude Oil's Lead: Russell

In contrast to the carnage in crude oil markets, liquefied natural gas (LNG) prices in Asia have enjoyed relative stability for the past three months, but it's unlikely the calm will persist much longer. Spot Asian LNG prices <LNG-AS> ended last week at $5.60 per million British thermal units (mmBtu), about 28 percent below the recent peak of $7.80 reached on Nov. 22. In contrast, Brent crude oil has dropped 46 percent from its recent peak in early October to trade currently around $28.55 a barrel. The relative outperformance of spot LNG holds over the longer term as well…

ARENA Boosts 22 Mega Solar Projects

Courtesy ARENA

The Australian Renewable Energy Agency (ARENA) today announced the short-list of projects invited to progress to the next stage of its $100 million large-scale solar photovoltaic (PV) competitive round. ARENA CEO, Ivor Frischknecht, said the expression of interest (EOI) phase had attracted strong interest, including several new entrants to the market, and the overall quality of proposals was high. “ARENA received 77 eligible EOIs and has selected 22 high merit projects to proceed to the full application stage with submissions due by 15 June 2016,” Mr Frischknecht said. “The projects are located in all mainland states and have a total capacity of 766 megawatts (MW).

Beach Begins Gas Supply to Origin Energy

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Long term gas sales agreement with Origin Energy Retail Limited (“Origin”) has been initiated for delivery of up to 139 PJ of sales gas over an initial eight year term Beach Energy Limited is transitioning to separate lifting and marketing of its equity share of sales gas from the SACB and SWQ JVs. Through its wholly owned subsidiary, Delhi Petroleum Pty Ltd, Beach entered a long term sales gas agreement with Origin for a minimum eight year period commencing 1 July 2015. Beach is pleased to advise that deliveries of sales gas under the Long Term GSA commenced today.

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…

Senecio-3 Flow Test Update

Depth map on the Senecio and Waitsia fields

AWE Limited as the Operator of the L1/L2 joint venture, provides the following update on the flow testing program at the Senecio-3 well, in the onshore Perth Basin, Western Australia. The testing program is designed to determine well deliverability from two reservoir zones in the Waitsia gas discovery and to collect gas samples for compositional analysis. The first stage of the testing program commenced on 18 February and focused on the lesser quality, deeper secondary target, the High Cliff Sandstone. A 5 metre interval (3,254m – 3,259m) was perforated without stimulation and the well was flowed twice over a 77 hour period.

Origin Energy Profits Down, Flags Cost Cuts

Origin Energy ltd, Australia's biggest gas and power retailer, reported a 9 percent drop in first-half underlying profit on Thursday, hurt by a drop in its oil production, and said it would focus on cutting costs amid the oil price slump. Underlying profit fell to A$346 million for the six months to December from A$381 million a year earlier. That was below two analysts' forecasts around A$369 million. However Origin held its dividend steady at 25 cents, as expected. Origin Energy sees this year and next as transition years as it gets set to start exporting liquefied natural gas from its A$24.7 billion Australia Pacific LNG project in Queensland…

Australian LNG Deals Impacted by Price Drop

Scarborough floating LNG project seen at risk; planned LNG projects hurt by near-50 pct fall in Asia LNG prices. Planned Australian liquefied natural gas (LNG) export projects, including the costly Scarborough floating vessel, are at risk as sinking energy prices make investments unviable, analysts said. A nearly 50 percent slump in Asian LNG prices <LNG-AS> this year has pressured any project without a Final Investment Decision (FID). Just last week, Woodside Petroleum Ltd delayed the FID for its $40 billion Browse floating project with Royal Dutch Shell and BP. The next cab off that rank could be ExxonMobil and BHP Billiton's $10 billion Scarborough project.

Australia Energy Blueprint Sees Large-scale Deregulation

Australia on Tuesday said it wants to dramatically deregulate its energy industry, boost domestic gas supply and cut renewable energy subsidies as it prepares to ramp up exports of liquefied natural gas. In a draft policy blueprint, the conservative coalition government unveiled a range of policy proposals - most involving scaling back government interference - that it said would keep the country's energy industry competitive amid dwindling demand and investment. "The Australian energy market has undergone significant transformation in recent years as a result of declining demand and changing patterns of consumption…

Chilean Court Rejects Appeal Against Crow River Project

Chile's Supreme Court on Thursday rejected an application for an environmental organization against Crow River hydroelectric project, which plans to build in the south of the country with an initial investment of $ 733 million . In a unanimous ruling, the Third Chamber of the Supreme Court upheld an earlier judgment of the Court of Appeals of the Coyhaique region, in September last year dismissed an appeal against the Environmental Evaluation Service that area of ​​the country. The statement argued that the application for protection of…