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23,000 households in north-west NSW from
Wilga Park Power Station, there are 16 Santos
people living and working in Narrabri, we’re
buying goods and services locally, and we’re
in a position to ramp up our activity and get
back to drilling more appraisal wells as soon
as a decision is taken.”
Australian Prime Minister Scott Mor-
rison, speaking at the CEDA State of the
Nation summit on June 15, has highlighted
the scale of the economic problem the coun-
try is facing. Morrison said around 1.6mn
Australians were receiving unemployment
benefits and that more than AUD100bn
($68.65bn) of economic activity had already
been wiped out this year.
“The road ahead will be very hard,” Morrison
said, adding: “There is a mountain yet to climb.”
The prime minister warned that it could take
“at least” two years before the economy returns “Developing local gas supplies in
to pre-COVID-19 levels. NSW means commercial bakers in
Gallagher said Narrabri’s gas would Sydney will no longer pay AUD26,400
the cheapest available to NSW customers, [$18,100] more for gas every year than
with 100% of production earmarked for similar businesses in Brisbane,” the
the local market. executive added.
Chevron plans NWS stake sale
FINANCE & US super-major Chevron has announced plans Browse development under a tolling agreement,
INVESTMENT to sell its 16.6% stake in the North West Shelf there is no sign of a final deal on that front with
(NWS) liquefied natural gas (LNG) project in repeated reports of mounting friction between
Western Australia. the partners. Woodside deferred the project fol-
The company said on June 18 that it had lowing the oil price crash in March.
decided to offload its non-operated interest in Wood Mackenzie senior analyst David Low,
Australia’s oldest gas export project after it had however, has flagged Woodside as a leading
received “a number of unsolicited approaches candidate to buy Chevron’s stake. He said: “In
from a range of credible buyers”. terms of buyers, there are a few likely suitors, but
Chevron’s stake could fetch $3-4bn, accord- of the existing participants we see Woodside as
ing to one unnamed analyst quoted by Reuters. the most likely buyer. It is well-positioned finan-
Woodside Petroleum operates the project, in cially and has announced it is ready and look-
which BHP, BP, Royal Dutch Shell and a joint ing for merger and acquisition opportunities in
venture consisting of Japan’s Mitsubishi and Australia.”
Mitsui & Co are also partners. Chevron said it remained committed to its
Chevron has previously said it is on track Gorgon and Wheatstone LNG projects, with
to reach its reach its divestment target of Low noting that the super-major’s focus going
$5-10bn between 2018 and 2020, suggesting forward would be on “squeezing maximum
that the sale has been motivated more by the value” from the projects without “distractions”
difficulties in outlining the next phase of the from the NWS.
project’s lifecycle. The sale comes as Australia’s gas exporters are
With the NWS feedstock fields running dry, feeling the pinch from dwindling global demand
the project partners have struggled to reach an on the back of the coronavirus (COVID-19)
accord on new gas supplies. Unnamed analysts pandemic’s economic rout.
told Reuters that Chevron’s failed bid to supply Australian gas exporters shipped 93 cargoes
gas from its undeveloped Clio-Acme fields had in May – amounting to 6.4mn tonnes – which
given added impetus to the sale. was down seven cargoes from April, accord-
While the NWS partners signed an initial ing to energy consultancy EnergyQuest’s latest
deal in 2018 on processing gas from Woodside’s monthly gas sector report.
Week 24 18•June•2020 www. NEWSBASE .com P9
