Page 8 - GLNG Week 29
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GLNG austRalasia GLNG
APLNG lines up Queensland block
PRojECts & ComPaniEs
THE Queensland government has formally awarded the ATP2046 block to the Australia Paci c LNG (APLNG) and Armour Energy joint venture, the latter company revealed on July 18.
e 18-square km coal-bed methane (CBM) play, which is located 22km south-west of Chin- chilla and adjoins APLNG’s Talinga project, has been earmarked as an exclusive source of gas for domestic industrial consumers.
While APLNG operates the joint venture with a 90% stake, both parties will be able to mar- ket their share of gas production independently.
Armour said it expected the block’s gas pro- duction would have an “existing path to market”, given ATP2046’s close proximity to APLNG’s Talinga Gas Plant.
e junior partner, which anticipates rst gas from the block by mid-2021, said it was in the process of identifying potential customers that satisfy the bidding process’s restrictive market- ing conditions.
In a July 19 statement, the Queensland government praised the joint venture’s gas supply deals with explosives manufacturer Orica and packaging maker Orora that were
announced in early July.
Queensland Mines Minister Anthony Lyn-
ham said: “ e [Queensland] government set aside land for potential gas producers to supply manufacturers and this initiative is paying o for manufacturing workers. Queensland continues to do the heavy li ing when it comes to gas sup- ply for eastern Australia, and energy policy for the nation.”
e local government’s statement noted that Queensland had delivered around 25% of the gas that owed to the East Coast gas market.
APLNG revealed on July 4 that it had agreed to supply 10.2 petajoules (265.69mn cubic metres) of gas to Orica over four years starting from 2021, while Orora will receive 6 PJ (156.29 mcm) over three years starting from 2023.
Last week’s government statement quoted APLNG CEO Warwick King as saying: “APLNG is proud to be supporting manufacturing jobs in Australia through the supply of gas to Australian manufacturers, with the earliest of a number of multi-year contracts beginning in 2020. We will be able to develop this block e ciently given its proximity to existing infrastructure.”
Woodside’s Q2 production, revenue slides
PERfoRmanCE
AUSTRALIAN developer Woodside Petrole- um’s production and revenue both slid in the April-June period owing to prolonged main- tenance at the Pluto LNG project. Production decreased from 21.7mn barrels of oil equivalent (boe) to 17.3mn boe in the rst quarter, while sales fell from $1.22bn to $738mn.
“[ e maintenance works at Pluto] lasted a little bit longer than we thought but we’re back up and running at full capacity ... and our guidance for the year has been maintained,” the Sydney Morning Herald quoted CFO Sherry Duhe as saying. Woodside warned investors in June that Pluto’s issues meant full-year production would likely be towards the lower end of the company’s 88-94mn boe guidance range.
On a more upbeat note, Woodside CEO Peter Coleman said the start of o shore com- missioning at the $1.9bn Greater Enfield oil development during the quarter meant the project was on schedule and budget. He added: “We restarted production from the Vincent wells in July and are working towards startup of the Greater En eld wells within the coming weeks.”
e project encompasses the Laverda Can- yon, Norton over Laverda (WA-59-L) and Cimatti (WA-28-L) oil accumulations. Pro- duction is being sent to the Vincent oilfield’s Ngujima-Yin oating, production, storage and
o oading (FPSO) vessel via a 31-km pipeline. Woodside operates Greater En eld with a 60% stake, while Japanese trading giant Mitsui
& Co. owns 40%.
Coleman also said that the Browse joint venture
had approved the basis of design for the Browse- to-North West Shelf (NWS) project in May and had taken “further steps” to secure key regulatory and environmental approvals for the develop- ment. A er scrapping two plans to develop the Browse eld, rst via an onshore plant and then by a oating lique ed natural gas (FLNG) vessel, the company now intends to connect the eld to the existing NWS facility via a pipeline.
However, the central government is begin- ning to lose patience over how long the Browse development is taking, Federal Resources Minis- ter Matt Canavan told 6PR radio on July 19.
“ is has been a 15-year process,” the minis- ter said, adding: “We’re coming very close to the end of a retention lease they have over this area and I’ve been putting a lot of pressure on all the joint venture partners to make this happen now. It is a bit of a ‘three strikes and you’re out’ situa- tion.” Woodside said on July 22 that the joint ven- ture was “aligned on being ready” to commence front-end engineering design (FEED) work by the end of this year and was aiming to make a nal investment decision (FID) in late 2020.
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w w w . N E W S B A S E . c o m Week 29 25•July•2019
