Page 9 - AsianOil Week 09 2021

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Jemena welcomes report on gas’ “critical” role

PERFORMANCE AUSTRALIAN gas infrastructure operator would continue to play in delivering reliable and
Jemena has welcomed a new report that sustainable energy.
claims the cleaner-burning fuel is a “critical Tudor said: “This report demonstrates that
element” in the net-zero future of the coun- the most efficient way of achieving net-zero
try’ power mix. emissions in the electricity sector is to ensure
Jemena said on March 4 that the Frontier gas-powered and renewable generation work
Economics report, Potential for Gas Powered in concert with one another, with gas provid-
Generation to Support Renewables, had found ing crucial firming power when renewable
that gas was best placed to secure the energy sys- generation is unavailable, particularly over
tem during renewable droughts. prolonged periods when other firming solu-
The report points to South Australia’s experi- tions such as battery and pumped hydro will
ence of such a drought and the role that gas-fired have depleted.”
power generation can play in a system with a He added: “Modelling in the report demon-
large amount of renewable generation. strates that the gas/renewable generation part-
The state has developed into the country’s nership is also the cheapest way of achieving
renewables powerhouse over the last two dec- net-zero emissions, with total resource costs
ades, growing the industry from a zero base to reducing by as much as 36% when gas-powered
accounting for 60% of electricity supply in 2020. generation is used to support renewables.”
However, the path has not been smooth, with While Jemena is understandably delighted by
infrastructure challenges highlighted when the report’s findings, environmental activists are
storms in 2016 knocked out wind farms and led less likely to add their voices to the chorus.
to widespread blackouts. The green lobby’s concerns around gas extend
The Frontier Economics report noted that far beyond the basic concept of emissions gen-
gas’ role in providing firming power was under- erated from gas consumption, focusing instead
valued in long-term investment modelling, and on fugitive methane emissions during the
that gas-fired power generation designed specif- extraction processes. Unless progress is made
ically in support of renewable projects was likely on dispelling concerns around fugitive methane
to be very low. emissions in the upstream then studies on end-
Jemena managing director Frank Tudor said use scenarios will struggle to gain traction with
the report demonstrated the “crucial role” gas the fuel’s critics.™

Santos hires rig for two wells off WA

PROJECTS & AUSTRALIAN independent Santos has hired largest oil discoveries in more than a decade,
COMPANIES a jack-up drilling rig to drill two wells at the with 344mn boe in proven and contingent
greater Phoenix project offshore Western Aus- resources. That estimate includes 162mn barrels
tralia, according to junior partner Carnarvon of liquids and 748bn cubic feet (21.18bn cubic
Petroleum. metres) of gas.
Carnarvon said on March 3 that the Noble Carnarvon said: “Both prospects have the
Tom Prosser rig had been contracted to drill the potential to materially increase the aggregate
Pavo-1 and Apus-1 exploration wells. development resource for the Dorado field if
Santos operates the Phoenix project, which successful.”
lies across the WA-435-P, WA-436-P, WA-437-P It added that the fields could be tied back to
and WA-438-P permits. The company owns 80% existing infrastructure at Dorado, which would
of WA-435-P and WA-437-P as well as 70% of provide “significantly enhanced economic out-
WA-436-P and WA-438-P, while Carnarvon comes” while speeding up first production.
owns the remaining interests. Having contracted the rig, which was pre-
Carnarvon said the drilling programme was viously used on the successful Dorado-2 and
expected to commence in late 2021 with Pavo- Dorado-3 appraisal wells in 2019, Santos is now
1, while Apus-1 would follow immediately. The anticipated to begin securing the other equip-
Pavo prospect lies in the 6,822.5-square km ment, services and approvals required to begin
WA-438-P and the well will target 101mn bar- drilling.
rels of oil equivalent, while the Apus prospect Carnarvon managing director and CEO
straddles the 4,877.9-square km WA-437-P and Adrian Cook said: “Given the potential resource
the well will target 307mn barrels boe. size and development aggregation benefits, these
WA-437-P also contains the Dorado oil- two drilling targets provide very attractive and
field, which is estimated to be one of country’s meaningful opportunities for Carnarvon.”™

Week 09 04•March•2021 www. NEWSBASE .com P9