Page 13 - AsianOil Week 37 2022

AsianOil NEWS IN BRIEF AsianOil

($40.4mn) and a royalty on future supported by a majority of employees in a Galilee signs pipeline MoU
production over the life of field across the formal vote and is expected to come into
interest being acquired. Origin has also effect in early October 2022," the London- with APA
executed a gas sale agreement for offtake of based oil and gas major said.
future gas production. Galilee Energy Ltd., Brisbane, has
Origin said it will undertake a strategic signed a non-binding memorandum
review of all remaining exploration permits, NZ Oil and Gas pens supply of understanding (MoU) with pipeline
excluding its interests in APLNG, with a infrastructure combine APA Group for
view to exiting those permits over time. deal with Shell Australia for potential construction of a pipeline to
APLNG, a joint venture comprising Origin, connect Galilee’s Glenaras gas project in
ConocoPhillips and China's Sinopec, is east coast market Galilee basin near Longreach in central
Australia’s largest producer of coalbed eastern Queensland to Australia’s east coast
methane and supplies gas to Queensland’s New Zealand Oil and Gas (NZOG) markets.
domestic gas market, while also processing Ltd (NZO.NZ) said on September 15 it Terms of the MoU provide a framework
CBM into LNG for exports. had signed a one-year deal with Shell's for the companies to negotiate agreements
“The decision to divest our interest Australian unit to deliver 0.64 petajoules under which APA could potentially design,
in the Beetaloo and exit other upstream (PJ) of gas from its Mereenie gas field develop, and operate the infrastructure to
exploration permits over time, will enable starting 2025 for supply into the Australian connect Glenaras and use APA’s existing
greater flexibility to allocate capital east coast domestic market. assets to transport gas to multiple markets.
towards our strategic priorities to grow The deal comes at a time Australia's east Further discussions would be held leading
cleaner energy and customer solutions, coast is forecast to face a shortfall of 56 PJ to design, route selection, and valuations.
and deliver reliable energy through the of gas - equivalent to about 10% of demand APA’s initial concept is to bring a 420-km
transition,” Origin CEO Frank Calabria - in 2023, which has prompted the country's line south from Glenaras to the Cooladdi
said. “We believe gas will continue to play competition watchdog to urge government compressor station of the existing South
an important role in the energy mix and it to curb exports. read more West Queensland Pipeline (SWQP).
remains a core part of our business." The market is under pressure as a SWQP connects Moomba gas hub in South
protracted Russia-Ukraine war, along with Australia to Wallumbilla hub in Queensland
sanctions on Russia, has disrupted supply and enables bi-directional flow of gas
Shell's Prelude FLNG chains and spurred volatility in natural gas between Queensland and southern markets
via the Moomba to Sydney trunkline and
prices.
resumes exports domestic market, with pricing under the the Moomba to Adelaide pipeline system.
"Gas will be supplied into the east coast
At Ballera in southwest Queensland, there is
Shell said on September 19 it had resumed GSA (gas supply agreement) reflecting a connection to the Carpentaria gas pipeline
producing and shipping LNG from its strong market conditions," NZOG said. which supplies gas to Mount Isa.
Prelude floating LNG (FLNG) facility, The Mereenie joint venture (JV) - which Linking Glenaras to the pipeline
nearly a month after the oil and gas major operates the field in Northern Territory, network adds optionality to discussions
and workers' unions reached a wage deal. Australia and is controlled by three with potential gas customers and expands
In late August, Shell and unions companies including NZOG - will deliver Galilee’s commercial opportunities, the
representing workers at the floating facility up to 3.65 PJ of gas to Shell Australia over company said.
off northwest Australia reached the deal, the one-year term, NZOG said.
ending a long-running strike that had shut NZOG directly and indirectly holds a
down the 3.6mn tonne-per-year facility in 25% stake in the JV, Central Petroleum
July and halted LNG supplies. owns another 25%, and the rest is owned by
The cargo shipment is the facility's first a unit of Macquarie Group.
in two months.
"The enterprise agreement has now been

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