Page 14 - GLNG Week 30

GLNG
nEWs in BRiEf
GLNG
connected by 900km of subsea pipeline to the North West Shelf ’s Karratha Gas Plant. We also propose to build a pipeline linking the Pluto and KGP plants, creating an integrated 7-train LNG production centre on the Burrup Peninsula. Economic consultants ACIL Allen estimate that the economic activity associated with the Burrup Hub can support the creation of an average of 4,000 full-time equivalent jobs per annum nationally over a 40-year timeframe, with almost half those jobs located in northern Western Australia. Total direct tax and royalties payments over that timeframe are estimated by ACIL Allen to add up to
$82 billion. And the ow-on e ects include boosting Australia’s Gross Domestic Product by $414 billion between now and 2063.
We’re already seeing tangible value creation from that integration of technology and operations. Perhaps the most signi cant impact is the increase in capacity of the
Pluto LNG train. e original nameplate capacity of the plant is 4.3 MTPA. In 2018, we demonstrated sustainable capacity of
4.9 MTPA. is was a remarkable outcome, which was achieved through a whole range of optimisation projects, including ensuring we had the right so ware model to understand the constraints in the facility, so we systematically could work through them. Our goal is to build what we call Intelligent Assets. We are installing a datadriven digital nerve system at our operating facilities that will capture, analyse and make use of all available data to enable better decision-making and operations.
WooDsiDE PEtRolEUm, july 29, 2019
Woodside awards Scarborough seabed work
In its capacity as Operator of the Scarborough Joint Venture, Woodside has awarded a contract to Boskalis Australia Pty Ltd to undertake seabed intervention and shore crossing works for the proposed Scarborough export gas pipeline. e contract is for preparatory activities related to o shore deepwater excavation, pipeline crossings, nearshore and shore crossing works for the export trunkline which connects Scarborough to onshore processing infrastructure.
e execution of the in- eld work is subject to a positive nal investment decision being taken on the project by the Scarborough Joint Venture. e contractor will mobilise specialist excavation and rock placement equipment for the complex scope, presenting a substantial local employment component. e scope also includes the supply of rock material. Bidders for contract awards are required to provide an indicative list of work
scopes that would be advertised to ensure local companies are provided full, fair and reasonable opportunity to participate in contracting opportunities.
Woodside is supporting its contractors
to develop Australian Industry Participation Plans (AIPPs) to continue to improve local content outcomes. Woodside anticipates
that local supply chain opportunities will increase during the construction phase of its projects, a er the relevant ventures reach nal investment decisions on the Scarborough
and Pluto Train 2 projects. Woodside CEO Peter Coleman said the award of the seabed intervention contract is another step towards unlocking the value of the Scarborough gas resource.
WooDsiDE PEtRolEUm, july 30, 2019
EURoPE
Commission approves
public support for Croatian
LNG terminal at Krk island
e European Commission has found Croatian plans to support the construction and operation of an LNG terminal at Krk island to be in line with EU State aid rules. e project will contribute to the security
and diversi cation of energy supplies without unduly distorting competition. Commissioner Margrethe Vestager, in charge of competition policy, said: “ e new LNG terminal in Croatia will increase the security of energy supply and enhance competition, for the bene t of citizens in the region. We have approved the support measures to be granted by Croatia because they are limited to what is necessary to make the project happen and in line with our State aid rules.”
e measures approved today will support
the construction and operation of a oating LNG terminal, consisting of a oating storage and regasi cation unit (FSRU) and the connections to the national gas transmission network. e LNG terminal is designed to transport up to 2.6 billion cubic meters per year (bcm/y) of natural gas into Croatia national transmission network as from 2021.
e total investment costs to build the terminal amount to €233.6 million. is
will be nanced through: a direct equity contribution of €32.2 million from the
LNG terminal company shareholders; a contribution of €101.4 million from the Connecting Europe Facility, which is centrally managed by the European Commission, through the Innovation and Networks Executive Agency (INEA); a direct nancial contribution of €100 million from the Croatian State budget.
In addition, Croatia will grant a tari compensation called ‘security of supply fee’, which is nanced by levies charged by the gas transmission system operator to gas users along with gas transmission tari s, in case revenues from the terminal fees are not su cient to cover operating expenses.
Croatia noti ed the Commission of the €100 million direct nancial contribution,
as well as of the security of supply fee. Both support measures involve State aid under EU rules.
e Commission found that: the aid measures are necessary, as the project would not be carried out without them. In this respect, the Commission’s nancial analysis has shown that the revenues originating exclusively from the tari s charged to the users of the LNG terminal would not be enough to recoup the investment costs and ensure a su cient remuneration of the LNG promoter;
e aid measures are proportionate and therefore limited to the minimum necessary, as they will only cover the “funding gap”,
P14
w w w . N E W S B A S E . c o m
Week 30 01•August•2019