Page 15 - AsianOil Week 20 2021

AsianOil OCEANIA AsianOil

Woodside to exit Kitimat LNG

FINANCE & AUSTRALIA’S Woodside Energy announced
INVESTMENT this week that it would exit its 50% non-operated
interest in the proposed Kitimat LNG project on
Canada’s West Coast.
The company will either sell or wind up and
restore the assets, leases and agreements cover-
ing both the LNG terminal’s site in Bish Cove,
British Columbia, and the 480-km Pacific Trail
pipeline route.
This comes roughly two months after oper-
ator Chevron said it was ceasing all funding
for feasibility work on Kitimat LNG. Chevron
had also been trying to sell its 50% stake in the
project, but no buyer has emerged. Indeed,
Woodside had previously tried to sell down its
Kitimat stake, with no success, but had said in
March that it had not yet given up on moving the The company expects its 2021 net profit after
project forward. tax to take a hit of roughly $40-60mn as a result
“Following Chevron’s decision to exit KLNG of costs associated with its exit from Kitimat.
and subsequent decision in March 2021 to cease However, O’Neill said Woodside would retain
funding further feasibility work, Woodside an upstream position in BC’s Liard Basin, which
undertook a comprehensive review of our would provide it with a low-cost option to inves-
options for the project and our wider develop- tigate potential future natural gas, ammonia and
ment portfolio,” said Woodside’s acting CEO, hydrogen opportunities in the province.
Meg O’Neill, in a May 18 statement. “The Kit- Woodside’s decision represents a blow to
imat LNG proposal was designed to develop a Canada’s LNG ambitions, even as construction
new source of LNG to supply Asian markets in continues on nearby LNG Canada. Meanwhile,
the latter part of this decade. However, we have two smaller projects are also inching forward.
decided to prioritise the allocation of capital Earlier this month, Woodfibre LNG said it had it
to opportunities that will deliver nearer-term signed a second agreement to sell LNG from its
shareholder value.” proposed 2.1mn tonne per year (tpy) plant to BP.
Woodside said the opportunities O’Neill And Pieridae Energy is targeting a final invest-
was referring to were located in Australia ment decision (FID) on its 10mn tpy Goldboro
and Senegal. LNG facility in Nova Scotia by the end of June.™

Jemena picks Wasco to expand

Roma North gas processing facility

PROJECTS & AUSTRALIAN energy infrastructure operator the pipeline for AUD50mn ($38.8mn).
COMPANIES Jemena has awarded a AUD15mn ($11.6mn) Jemena’s executive general manager of gas
contract to Wasco Australia to expand the capac- markets, Antoon Boey, said the expansion would
ity of the Roma North natural gas processing boost the facility’s gas processing capacity to 24
facility in Queensland by 50%. TJ (625,000 cubic metres) per day.
Jemena said on May 16 that it had picked Boey said: “As a result of this project, we
Wasco because of its “proven track record” of anticipate the capacity of the Roma North gas
completing complex projects at gas processing processing facility will increase by about 50%,
facilities across the region. with Jemena set to transport gas from the facility
Australian independent Senex Energy oper- on behalf of Senex to their customer, GLNG.”
ates the Roma North gas field, which is located The project is anticipated to take three to
in the Surat Basin, and commissioned Wasco to four months to complete, with Jemena noting
build the original 16 TJ (417,000 cubic metres) that it would spend more than AUD500,000
per day processing facility and export pipeline in ($387,000) on goods and services from supplies
2019. Jemena later acquired both the facility and in the Maranoa Region.

Week 20 20•May•2021 www. NEWSBASE .com P15