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Australian government backs oil, gas sector

POLICY AUSTRALIAN Prime Minister Scott Morri- (COVID-19) pandemic. Under the scenario
son has pledged that the oil and gas sector will laid out by Canberra in September 2020, Aus-
“always” be a pillar of the economy, even as tralia will see both greater production and
domestic investment in clean energy alterna- consumption of gas. Domestic manufacturing
tives grows. should grow exponentially on the back of lower
Morrison, during a video address to Aus- gas prices.
tralian Petroleum Production and Exploration The fact that this plan has failed to win sup-
Prime Minister Scott Association’s (APPEA) annual conference in port from gas producers, the environmental
Morrison backs oil and Perth on June 15, said: “The oil and gas sector lobby and the Australian Energy Market Oper-
gas players. is a major contributor to Australia’s prosperity – ator (AEMO) has done nothing to dampen the
always has, will always be.” government’s enthusiasm.
He said the Coalition government would “I know there is a new energy economy
continue to support both the upstream as well coming and we need to be ready for it, we
as exporters of liquefied natural gas (LNG) as need to be part of it, and we will be successful
country transitions to a “new energy economy”. in it,” Morrison said. “We need to make sure
He added: “I want you to know we are backing that Australia succeeds. But that will not come
you in to stay on top as one of the world’s leading at the cost of our heavy industry and manu-
exporters of LNG, and with a plan here in Australia facturing industries, it will not come through
that sees gas as key, the key to securing reliable, higher taxes, it will come through technology,
affordable energy in a transitioning energy market, and innovation and the entrepreneurship of
moving to a new energy economy.” our industry leaders, through supporting Aus-
Morrison’s government has been promot- tralia’s resources sector to explore the future
ing a “gas-led recovery” from the coronavirus – that’s how we make our way.”™

Japanese investors back

Australian hydrogen, CCS projects

PROJECTS & JAPANESE oil and gas companies have commit- company wants to expand its Japanese hydrogen
COMPANIES ted to both a new clean energy development as station network from 53 facilities in fiscal 2020-
well as a carbon capture and storage (CCS) pro- 2021 to 83 by fiscal 2023-24 and its US hydrogen
ject in Australia. station network from four to 23.
The move comes amid a push by the East The company sold 67mn cubic metres of liq-
Asian country’s government, as well as its largest uefied hydrogen in fiscal 2020-2021, but wants to
companies, to achieve carbon neutrality by 2050. expand this by 34.3% to 90 mcm in 2023-2024.
Industrial giant Iwatani intends to open an Australia’s Transborders Energy, meanwhile,
office in Queensland’s capital city of Brisbane has just signed separate joint study agreements
next month, after having secured land for its pro- with Japan’s JX Nippon Oil & Gas Exploration
posed commercial green hydrogen production (JX NOEX) and Toho Gas on the co-develop-
project in the state with Stanwell power utility. ment of an offshore carbon capture and storage
Iwatani is opening the office in order to be able (CCS) project, which is dubbed deepC Store.
to work more closely the Queensland state govern- The development aims to be the final destina-
ment’s Stanwell and other Australian companies, tion for carbon dioxide (CO2) produced by both
industry news outlet Argus reported on June 16. industry in Australia as well as throughout the
The Queensland government announced on wider Asia-Pacific region. The captured CO2 will
June 7 that Iwatani and Stanwell would build a be shipped to a floating storage and injection (FSI)
3,000-MW electrolyser in the Aldoga industrial hub facility offshore Australia, where it will then be
development zone in Central Queensland. The injected into a subsurface storage complex.
partners signed an agreement to secure 2.36 Transborders said on June 15 that the agree-
square km of land for the facility, which will able ments paved the way for the Japanese compa-
to export “millions of tonnes” of green hydrogen nies to participate in deepC Store’s pre-front end
by the early 2030s. engineering and design (pre-FEED) work as well
Iwatani unveiled plans earlier this month as pre-negotiations relating to CO2 supply, engi-
to invest JPY60bn ($542.3mn) over the next neering, procurement and construction (EPC)
three fiscal years to promote hydrogen use. The contracts, operations and financing.™

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