Page 7 - AsiaElec Week 03

AsiaElec GAS-FIRED GENERATION AsiaElec
Vintage hits gas at Queensland well
AUSTRALIA
AUSTRALIAN independent Vintage Energy has announced the discovery of natural gas at its first well on ATP 2021 in Queensland.
The Vali-1 ST1 well discovered gas in the primary Patchawarra Formation target, Vintage said on January 16.
It added that the well was being cased and suspended for potential stimulation, flow test- ing and future production. Vintage said the joint venture was considering whether to stimulate the well to increase permeability and flow rates in the Patchawarra sandstones.
Vintage operates the licence with a 50% stake, while Metgasco and Bridgeport each own 25% interests. ATP 2021 covers 370 square km of the southern flank of the Nappamerri Trough.
The company said it had begun an evalua- tion programme of the well – including wireline logging, gathering of formation pressure data and sampling of formation fluid – once it had reached a total measured depth of 3,217 metres.
Vintage said: “Analysis of the data gath- ered indicated the discovery of over 35 metres of interpreted log net gas pay (porosity cut-off of 9%) over a gross 312- metre interval in the Patchawarra Formation target.”
The independent noted that in addition to
recovering gas via MDT sampling, gas had also been recovered from the Nappa Merri Forma- tion. The secondary discovery, the company said, added “weight to the potential indicated by goodgasshowsthroughthisinterval”.
Vintage managing director Neil Gibbins said: “This discovery at Vali-1 ST1 has laid the foun- dation for bigger things to come. We identified the ATP 2021 permit as highly prospective with an excellent ‘address’ close to infrastructure and other significant discoveries.”
He added: “The permit contains abundant follow-up potential in addition to future com- mercialisation of gas from Vali. With the oil shows identified in the shallower Jurassic and Triassic age reservoirs, we will now commence a review of structural closures in the area to iden- tify the potential for oil pools like those discov- ered on the Western Flank of the Cooper Basin.”
Vintage agreed to acquire a 50% interest in ATP 2021 from Metgasco last year in return for covering 65% of Vali-1’s cost, up to a gross cost of AUD5.3mn ($3.6mn), as well as pay- ing for 65% of past exploration costs amount- ing to AUD527,800 ($362,500) and funding up to AUD70,000 ($48,000) of 2D and 3D reprocessing.™
Petronas signs LNG contract with Shenergy
MALAYSIA
MALAYSIA’S state-run Petronas has signed a long-term liquefied natural gas (LNG) supply agreement with China’s Shenergy Group.
The agreement will see wholly owned sub- sidiary Petronas LNG Ltd (PLL) supply the Chi- nese state-owned company with around 1.5mn tonnes per year (tpy) of LNG for 12 years from 2022, the Malaysian company said January 20.
Petronas said the agreement would also involve a collaboration to build and charter new midsized LNG vessels.
Petronas has been supplying LNG to Shen- ergy, which is owned by the Shanghai municipal government, since 2006.
Petronas’s Malaysia LNG Tiga signed sale and purchase agreements (SPAs) with Shanghai LNG to supply up to 3.03mn tpy of LNG for 25 years in July 2006. The deal was Petronas’ first such sup- ply agreement with China. Shenergy owns 55% of Shanghai LNG, while China National Off- shore Oil Corp. (CNOOC) holds the remaining 45%.
The supply deal comes as Chinese demand for LNG continues to expand on the back of government efforts to increase consumption
of natural gas. Chinese imports of LNG in the first eleven months of 2019 climbed by 13.32% to 53.85mn tonnes of LNG.
China also began importing its first Russian piped gas last month, with the 3,000-km Power of Siberia pipeline opening on December 2.
State-owned China National Petroleum Corp.
(CNPC) said on January 17 that Russian gas supplies had reached 328mn cubic metres.
At the same time, domestic gas production has surged in recent years in response to the country’s ever-expanding demand. Production climbed by 9.8% year on year in 2019 to 173.6bn cubic metres, according to National Bureau of Statistics data.
However, while pipeline imports and domes- tic production are projected to continue rising in the coming years, the outlook for China’s LNG remains strong, as underlined by Beijing’s recent trade deal with the US. The Sino-US agreement has seen China agree to import $52bn worth of US energy products in 2020-2021, with LNG anticipated to account for a large portion of the final figure.™
Week 03 22•January•2020 w w w. N E W S B A S E . c o m P7