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GLNG
NEWS IN BRIEF
GLNG
will also help transform Taiwan into a low carbon emission homeland,” CPC added.
The shipment contains enough gas to power almost 150,000 Taiwanese homes over a 12-month period. However, regasifying the LNG, delivering and then burning the gas to power homes is expected to result in 240,000 tonnes of carbon emissions.
CPC has said it is planning to offset
these emissions by “using nature-based, independently verified credits purchased from various international ecosystem restoration initiatives supported by the UN REDD Programme”.
According to Shell, the shipment to
Taiwan is the third carbon-neutral LNG cargo following shipments to Japan and South Korea in 2019.
“We are very happy to be partnering with CPC to further extend our carbon neutral LNG offer, Using nature-based offsets in conjunction with LNG will help CPC to address their own emissions today and support the needs of their end customers looking to de-carbonise their energy use,” Shell’s vice president of LNG marketing and trading, Slavko Preo?anin, said.
AUSTRALASIA
Santos agrees to sell a 25%
interest in Darwin LNG and
Bayu-Undan to SK E&S
Santos today announced it had agreed to sell a 25% interest in Darwin LNG and Bayu-Undan to SK E&S for US$390mn with effect from 1 October 2019 with customary adjustments on completion.[1] Santos also receives the benefit of approximately US$120mn of cash flow relating to the interests from 1 January 2019 to 1 October 2019.
The sale is conditional on completion by Santos of the acquisition of ConocoPhillips’ northern Australia and Timor-Leste portfolio as announced on 14 October 2019, third- party consents, regulatory approvals and a final investment decision on Barossa.
SK E&S already has a 37.5% interest in the Barossa project to backfill Darwin LNG. Santos’ sale of interests in Darwin LNG and Bayu-Undan to SK E&S advances partner alignment for the development of Barossa, which remains a key priority for both companies.
Santos Managing Director and Chief Executive Officer Kevin Gallagher said the agreement with SK E&S builds partner alignment and is another significant step
towards bringing Barossa gas into production through the Darwin LNG facilities.
“We are delighted to have agreed terms with SK E&S to acquire interests in Darwin LNG and Bayu-Undan and look forward to continuing and building on the long-term relationship between our two companies.”
“Santos continues to build alignment between the Darwin LNG and Barossa joint ventures through discussions with Darwin LNG participants and others to acquire equity in Barossa. We are in advanced discussions
to sell-down equity in Barossa to a target ownership of around 40% to achieve increased partner alignment.”
“Santos expects to take a final investment decision for the development of Barossa following completion of the ConocoPhillips acquisition and once all necessary technical, engineering and commercial contracts are in place, including the processing agreement with Darwin LNG, to allow the project to proceed subject to market conditions,” Mr Gallagher said.
As announced on 14 October 2019, Santos’ net funding requirement for the ConocoPhillips acquisition is expected to be approximately US$775-825mn, net of the proceeds realised from the sell-down to SK E&S and post the benefit of cash flows generated from the acquired business from the ConocoPhillips acquisition effective date of 1 January 2019 to completion with customary adjustments.
Santos’ pro-forma gearing on completion of both the ConocoPhillips acquisition
and SK E&S sell-down is expected to be approximately 33.5% (approximately 31% pre-AASB 16 lease liabilities) before any cash generated from the sell-down of equity in Barossa.
SANTOS, March 12, 2020
New centre for LNG and hydrogen research to support future energy exports
The University of Western Australia will lead the new Future Energy Exports Cooperative Research Centre set to position Australia as a global leader in the development and testing of new LNG and Hydrogen technologies. Federal Minister for Industry, Science
and Technology, the Hon Karen Andrews, announced today that a WA-led, national collaboration of 28 industry, government and research partners had been successful in its bid to establish the Future Energy Exports Cooperative Research Centre (FEnEx CRC). The Federal Government will contribute a total of AUD40mn in co-funding to the CRC, which builds upon a further AUD122mn in support from industry, state governments and research organisations.
The CRC’s mission is to ensure Australia’s vital LNG industry remains competitive, reduces its environmental footprint, and helps to grow hydrogen exports for new emerging markets. A foundation project of the FEnEx CRC will be establishing the LNG Futures Facility, a 10 tonne-per-day research and teaching plant to be based at Kwinana. The project was announced by WA Premier Mark McGowan at the LNG19 conference
in Shanghai almost a year ago. The State Government committed AUD10mn towards the plant as part of its LNG Jobs Taskforce commitments; UWA committed up to AUD15mn. Approximately AUD16mn of the Commonwealth funding announced today will be allocated to the LNG Futures Facility.
Partners supporting the CRC bid include the WA State Government, global energy giant
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Week 10 13•February•2020