Page 8 - GLNG Week 27
P. 8
GLNG austRalasIa GLNG
Scarborough plans move ahead
PRojECts & ComPanIEs
WOODSIDE petroleum has submitted its o - shore project proposal (Opp) on its Scarborough gas eld, o shore Australia, which is to be devel- oped through a link to the pluto LNG plant. e Opp is open to public comments from July 5 to August 30.
The company submitted the Opp to the National O shore petroleum Safety and Envi- ronment Management Authority (NOpSEMA), in line with the O shore petroleum and Green- house Gas Storage (Environment) Regulations 2009.
Scarborough is situated 375km o the Burrup peninsula, in a cluster with the North Scarbor- ough, ebe and Jupiter gas elds. e area is covered by the WA-1-R, WA-62-R, WA-61-R and WA-63-R licences.
e plan is for a 430-km export pipeline to the onshore liquefaction plant, where a second train would also be built. Developing the eld would involve seven wells tied to a oating production unit (FpU), in around 900 metres of water.
A nal investment decision (FID) is targeted for 2020, with start-up in 2023. Drilling would begin in 2020, with the trunkline installed in 2020 and the FpU in 2023. e rst phase of
development would cover Scarborough and North Scarborough, with the second two elds having potential future tiebacks, perhaps in 2025. Decommissioning is projected to begin in 2055.
Woodside believes the Greater Scarborough area holds 260.5bn cubic metres of gas, of which 207bn cm lies in the Scarborough eld.
e company has not determined the pre- cise size of the second pluto LNG train, but has suggested it may be 4-5mn tonnes per year. e existing train has 4.9mn tpy of capacity and started up in 2012. Woodside bought out Exx- onMobil from the Scarborough area in 2018, also becoming the operator.
In April, Woodside struck a preliminary agreement on the supply of 1mn tpy to China’s ENN Group for 10 years, starting in 2025. is would be driven by the Scarborough and pluto LNG projects.
Woodside announced the opening of a truck-loading facility at pluto LNG in April. e Australian major is working on interim plans for pluto, involving the development of the pyxis and pluto North in ll wells, which should reach FID by late 2019.
APLNG signs domestic supply agreements
PERfoRmanCE
THE Australia paci c LNG (ApLNG) project has signed natural gas supply agreements with explosives manufacturer Orica and packaging manufacturer Orora.
Under the deals, Orica will receive 10.2 petajoules (265.69mn cubic metres) of gas over four years starting from 2021, while Orora will receive 6 pJ (156.29 mcm) over three years start- ing from 2023.
e agreements come in the wake of federal and state government policy decisions that are putting mounting pressure on Queensland’s gas export sector.
South Australia’s Centre Alliance party has traded its support for the Australian govern- ment’s proposed tax reforms for a seat at the table during the gas export reform process.
“The full package of reforms will be announced by government in the coming weeks, but will include changes to the Aus- tralian Domestic Gas Security Mechanism [ADGSM] to deal with current pricing, market transparency measures, measures to deal with the monopoly nature of East Coast gas pipelines and longer-term measures to ensure future gas projects deliver surplus supply to the Australian
market,” Centre Alliance said on July 4.
“ e ADGSM has worked to ensure there is enough supply, but has not dealt with price,” it added. “ ere has been a market failure and
government must intervene.”
The Queensland government, meanwhile,
increased its natural gas royalties by 2.5 percent- age points on July 1 to 12.5%. e state said the sector had enjoyed “incredibly competitive roy- alty rates” and it was now time to give back.
The energy sector has naturally pushed backed at both these moves. Queensland Resources Council (QRC) EO Ian Macfarlane said ApLNG’s supply agreements with Orica and Orora demonstrated the bene ts of a stable regulatory environment.
“ e Queensland gas industry is leading the nation with a proactive approach to eas- ing the East Coast gas squeeze. Queensland’s neighbours must take a leaf out of our book, instead of relying on our state to meet the gap caused by their failure to develop their own gas industries. Gas exploration has stalled in New South Wales and Victoria, despite the fact all jurisdictions have their own reserves in the ground.”
P8
w w w . N E W S B A S E . c o m Week 27 11•July•2019
