Page 10 - GLNG Week 09

GLNG AUSTRALASIA GLNG
ConocoPhillips awards final equipment contracts for Barossa project
PROJECTS & COMPANIES
Santos said in October 2019 that the Barossa field was the lead candidate to backfill the 3.7mn tpy Darwin LNG terminal.
US super-major ConocoPhillips has awarded contracts for the supply and installation of sub- sea infrastructure at the Barossa natural gas and condensate project offshore Australia’s Northern Territory.
The infrastructure is the last major facility commitment required before the project’s part- ners reach a final investment decision (FID), jun- ior partner Santos said on March 3.
ConocoPhillips operates the project with a 37.5% interest, South Korea’s SK E&S owns 37.5% and Santos owns the remaining 25%. However, Santos agreed to buy ConocoPhillips’ operated interests in the Darwin LNG project as well as the Bayu-Undan, Barossa and Poseidon offshore gas projects in October 2019.
Santos said at the time that it had agreed to pay $1.39bn for the assets as well as a $75mn con- tingent payment subject to an FID on Barossa. The transaction is waiting to be finalised.
The Australian developer said this week that Aker Solutions would supply Barossa’s subsea umbilicals, while National Oilwell Varco Den- mark would provide the flexible risers. Subsea 7 was awarded the contract to transport and install all of the umbilicals, risers and flowlines as well
as supply the in-field flowlines.
Santos managing director and CEO Kevin
Gallagher said the contracts were the final stages of the project’s front-end engineering design (FEED) phase.
He said: “These are the final major facilities contracts for Barossa as we get closer to pushing the button on the project’s development in the second quarter.”
The Barossa project, which is located in petroleum permit NT/RL5 around 300 km off- shore Darwin, consists of a floating production storage and offloading (FPSO) unit, six subsea production wells, supporting in-field subsea infrastructure and a gas export pipeline tied into the existing Bayu-Undan to Darwin pipeline that supplies gas to Darwin LNG.
Santos said in October 2019 that the Barossa field was the lead candidate to backfill the 3.7mn tonne per year (tpy) Darwin LNG terminal once Bayu-Undan runs dry.
ConocoPhillips owns a 56.9% stake in Dar- win LNG and Bayu-Undan as well as a 40% stake in the Poseidon exploration project. The super-major has projected that Bayu-Undan will enter end of life status in 2022.™
EUROPE
Russia produced a record 690bcm of gas in 2019 as LNG production soars
PERFORMANCE
LAST year, Russian natural gas production (excluding ancillary gas) grew by 3% to a set a new record of 690bn cubic meters, reports Bank of Finland Institute for Economies in Transition (BOFIT).
The growth was mainly driven by LNG pro- duction, which increased by almost 50% as the Yamal Peninsula LNG production started to reach full capacity.
LNG production last year was approximately 40 bcm (29.5mn tonnes), accounting for 6% of total gas production. Other natural gas produc- tion increased by about 1%.
“According to most forecasts, Russian natural gas production is expected to grow by 1-2% per year over the next few years. Production growth is mainly constrained by the demand outlook,” BOFIT said.
Natural gas production is very strongly con- centrated in the Yamal-Nenets region of West- ern Siberia, where there are long-established major deposits. However, production growth is focused on the Yamal Peninsula and East- ern Siberia. Novatek’s new LNG project, Arctic LNG 2, is underway in the Yamal Peninsula and
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w w w . N E W S B A S E . c o m Week 09 05•March•2020