Page 14 - AsianOil Week 46 2021

AsianOil NEWS IN BRIEF AsianOil

OCEANIA AGIG is pleased to announce the “With the current boom in Australia’s home
completion of the Pluto NW Shelf renovation and construction industry, Australian
Mereenie gas joint Interconnector. Pre-flow commissioning manufacturers are relying on gas to support their
checks and final inspections were finished on
production of in-demand materials such as glass,
marketing to be allowed the 5 November. bricks, roofing and cement.”
The PNI consists of a 30-inch pipeline
Earlier this year, Esso commissioned the
under ACCC draft connecting the inlet facilities next to the Gippsland Basin’s West Barracouta project,
Pluto LNG plant, via the metering facilities
which is set to be the largest new source of
determination at Dampier to the outlet facilities within the domestic gas for the Australian market this
Karratha Gas Plant.
decade.
The ACCC has issued a draft determination Rehabilitation along the pipeline’s right of “Our ongoing investment in projects like West
to allow joint marketing arrangements for way has progressed well, with the filling in and Barracouta mean that Gippsland gas continues
natural gas produced from the Northern positioning of rocks in keeping with the prevailing to flow to the Australian market and supports
Territory’s Mereenie gas field. The Mereenie landscape. local manufacturers, such as Oceania Glass, and
oil and gas field is located in the Amadeus The route was carefully chosen and designed the thousands of Australians who rely on their
Basin, approximately 250 km west of Alice in consultation with traditional owners to avoid products.
Springs. heritage sites and to meet our environmental EXXONMOBIL, November 16, 2021
Central Petroleum, Macquarie Mereenie, New obligations, minimising the impact along the right
Zealand Oil and Gas and Cue Energy are currently of way. Woodside agrees to sell
the joint venture partners in the field. AGIG will fill the PNI with nitrogen to preserve
ACCC authorisation would permit current the pipeline in preparation for Woodside’s start of 49% stake in Pluto Train 2
and future joint venture participants to jointly gas flows from the Pluto LNG Plant.
market gas from the Mereenie field for five Commissioning and Operations are expected to GIP
years and, within this period, to enter into in early 2022.
gas supply agreements with customers on The PNI is for Woodside to transport gas from Woodside has entered into a sale and purchase
common terms and conditions that could the Pluto LNG Plant to the North West Shelf’s agreement with Global Infrastructure Partners
operate up to December 2031. Karratha Gas Plant for both LNG export and (GIP) for the sale of a 49% non-operating
“Joint marketing is likely to lead to reduced domestic supply. The Interconnector is just over participating interest in the Pluto Train 2 Joint
transaction costs and encourage investment to 3km long and will initially transport about 250 TJ/ Venture (Transaction).
increase gas production at Mereenie, which will day potentially rising to over 900 TJ/day during its Pluto Train 2 is a key component of the
facilitate bringing gas to market sooner,” ACCC operations. proposed Scarborough development and
Chair Rod Sims said. AGIG, November 19, 2021 includes a new LNG train and domestic gas
“While separate marketing is facilities to be constructed at the existing
generally better from a competition More Gippsland gas Pluto LNG onshore facility. The estimated
perspective, in this instance the small capital expenditure for the development of
volume of gas involved and the nature flowing to Victorian glass Pluto Train 2 from the effective date is US$5.6
of the NT-Mount Isa gas market, where billion (100% project).
most demand is met by a limited manufacturer In addition to its 49% share of capital
number of large contracts, means expenditure, the joint venture arrangements
separate marketing does not bring Esso Australia Resources has boosted its gas require GIP to fund an additional amount
significant competition benefits,” Mr sales agreement with Oceania Glass, which of construction capital expenditure of
Sims said. will see the company supply additional approximately US$835 million. Woodside’s joint
“Customers in the NT-Mount Isa region volumes of Gippsland gas to support venture capital contributions will be reduced
have the option of alternative sources Australian glass production. accordingly. The final quantum of GIP’s capital
of supply such as the Power and Water Oceania Glass, Australia’s only contribution is dependent on interest rate swap
Corporation, from the NT’s Blacktip Field, manufacturer of architectural flat glass, and foreign exchange rates on the date of the
and suppliers from the Cooper Basin and makes and distributes glass for use final investment decisions for Scarborough and
potentially the Galilee Basin.” in Australian homes and buildings. Pluto Train 2.
“These alternatives limit the risk of the Employees at its Dandenong South If the total capital expenditure incurred is
Mereenie joint venture offering its gas at operations rely on the supply of Gippsland less than US$5.6 billion, GIP will pay Woodside
significantly higher prices, or on less flexible gas to power the furnace at the heart of its an additional amount equal to 49% of the
terms,” Mr Sims said. manufacturing process. under-spend. In the event of a cost overrun,
ACCC, November 19, 2021 Earlier this year, Esso extended its gas sales Woodside will fund up to US$835 million in
agreement with Oceania Glass to continue respect of a 49% share of any overrun. Delays to
Pluto to NW Shelf supplying Gippsland gas until at least the mid- the expected start-up of production will result
in payments by Woodside to GIP in certain
2020s. This latest agreement means Esso will
Interconnector (PNI) increase the Gippsland gas supplied to Oceania circumstances.
The development of Pluto Train 2 is expected
Glass during that period.
Construction complete Pugh, said Esso continued to invest in delivering to be supported by a long-term processing and
ExxonMobil Australia Chairman, Mr Dylan
services agreement (PSA) to be entered into
AGIG achieves completion of the gas from the Gippsland Basin to Australian homes between the Pluto Train 2 and Scarborough joint
construction phase for PNI and is ready for and businesses, supporting local jobs and the ventures.
operations. Australian economy. WOODSIDE PETROLEUM, November 15, 2021

P14 www. NEWSBASE .com Week 46 19•November•2021