Page 12 - AsianOil Week 48 2021

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developer noted that pricing reflected “current well as handle gas sales under a joint mar-
strong market conditions”. keting agreement.
The deal is Cue’s first new gas supply agree- Cue’s agreement with Power and Water Corp.
ment since it and parent company NZOG com- includes a portion of the increased production
pleted their acquisition of stakes in Central from the 2021 Mereenie development campaign,
Petroleum’s Mereenie, Palm Valley and Dingo where two new production wells were drilled
assets on October 1. and four existing wells were recompleted.
The two companies announced in May Cue said marketing was continuing for addi-
that they had agreed to pay AUD29mn tional gas sales for 2022 and beyond.
($20.59mn) for a 25% stake in the Mereenie NZOG said the three fields would boost its
oil and gas field, 50% of the Palm Valley gas proven and probable (2P) reserves by 14.5mn
field and 50% of the Dingo gas field – all barrels of oil equivalent (boe), with the com-
of which lie in the Amadeus Basin. Central pany noting that there was further exploration
Petroleum continues to operate the fields as upside potential.™

Gorgon Train 1 back online following repairs

PROJECTS & TRAIN 1 at the Chevron-led Gorgon LNG Trains 2 and 3 at the plant continued to oper-
COMPANIES terminal in Western Australia has returned to ate as normal during the latest outage at Train 1.
service after briefly having been taken offline However, on December 1, it emerged that Train
in mid-November following the discovery of a 3 was reportedly set to be shut down for work
minor gas leak. (See GLNG Week 46) again. The story was reported by Bloomberg and
The leak was detected on piping associated has thus far not appeared anywhere else.
with the dehydration unit on Train 1, which was It is worth noting that Chevron’s third-quar-
then shut down as a precautionary measure. ter update in October included maintenance
Repair work on the piping was completed last plans at Angola LNG but not any work at Gor-
week, allowing the train to return to service. gon, suggesting that any work at Train 3 would
Gorgon is one of the largest LNG projects have been unplanned.
in the region, with its three trains producing a The latest issues at Gorgon come amid strong
combined 15.6mn tonnes per year (tpy) at full LNG demand in Asia ahead of the winter. Aus-
capacity. The facility has struggled with various tralia appears set to be the largest supplier of LNG
operational issues over the past year. Each train to China this year, but based on data from the
in turn was taken offline since the summer of first 10 months of the year, its share of Chinese
2020 to repair weld quality issues discovered on LNG imports has fallen. Meanwhile, Chinese
propane heat exchangers, or kettles. The inspec- imports of US LNG are on the rise, and a series
tions and repairs were completed in the summer of new long-term supply deals struck this year
of this year, when Train 3 was returned to service between Chinese buyers and US LNG producers
after being taken offline earlier in the year. indicate that they are set to keep growing.™

P12 www. NEWSBASE .com Week 48 03•December•2021