Page 11 - GLNG Week 13
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GLNG AUSTRALASIA GLNG
AEMO warns of gas supply shortfalls
PERFORMANCE
Changes on the international LNG market could
have unexpected consequences for the local gas scene on Australia’s East Coast.
AUSTRALIA’S East Coast gas market is on track to experience natural gas shortages within the next five or so years, a new report by the Aus- tralian Energy Market Operator (AEMO) has warned.
Supply from existing and committed gas developments is expected to meet forecast East Coast demand until at least 2023, AEMO said in its Gas Statement of Opportunities (GSOO) on March 27.
It said: “Gas production from only existing and committed gas developments is forecast to provide adequate supply to meet gas demand until between 2023 and 2025 depending on sce- nario, provided cargoes of export LNG above contracted levels are diverted to meet domestic demand if needed.”
The operator, however, warned that a slide in production from southern gas fields would require the development of either new produc- tion capacity or liquefied natural gas (LNG) import terminals to avoid supply shortfalls in southern states from 2024.
The report said: “Southern supply from exist- ingandcommittedgasdevelopmentswillreduce
by more than 35% (163 petajoules) [4.25bn cubic metres] over the next five years, despite an increase in committed gas developments in the past year.”
It noted that the development of anticipated gas field projects, which are not yet commit- ted, would improve resource adequacy until at least 2026. However, final investment decisions (FIDs) for these projects face an uncertain future following the collapse of international oil and gas prices.
While local producers such as Beach Energy and Cooper Energy are upbeat about domestic-focused gas supply projects, changes on the international LNG market could have unexpected consequences for the local gas scene.
The GSOO said: “Global oil and gas demand trends may see LNG demand varying from expectations and indirectly impacting prices and availability of domestic supply and LNG imports. Impacts of the COVID-19 coronavirus (not modelled) may lead to decreased levels of global LNG demand and domestic gas consump- tionintheshortterm.”
EUROPE
Höegh applies for Cypriot LNG import licence
PROJECTS & COMPANIES
HÖEGH LNG Holdings announced on April 1 that its Höegh LNG subsidiary had applied for an LNG infrastructure ownership, operations and development licence in Cyprus.
Norway-headquartered, Bermuda-based Höegh is a provider of floating storage and regas- ification units (FSRUs) and has 10 currently in operation. The company is proposing to supply one such FSRU to Cyprus. This comes as the country proceeds with plans to import LNG as a fast-track solution to lowering greenhouse gas (GHG) emissions from the country’s power generation sector by shifting from refined oil products to cleaner-burning gas. Höegh said in a statement that this would allow Cyprus to reduce emissions, cut European Union emission taxes, make savings on fuel costs and bring down electricity prices for local consumers.
Höegh said it was working with VTT Vasi- liko (VTTV) and H4E GasFuel on its plan for Cyprus.VTTVownsanexistingjettyatthePort of Vasilikos, in close proximity to the country’s power plants. Höegh said this jetty could be adapted for the FSRU terminal.
“This planned project is part of Höegh LNG’s strategy to secure new FSRU contracts for our assets,” Höegh’s president and CEO, Sveinung Støhle, said in the company’s statement. “Even at this early stage I am very pleased with the
progress we have made with our local partners VTTV and H4E Gas Fuel to offer a fast-track LNG import solution for the Cypriot energy market.”
Subject to the licence being granted, Höegh anticipates starting LNG import operations in Cyprus during the first half of 2021. The com- pany said that the FSRU could stay on location as a “bridging solution” or for an extended period serving customers in Cyprus as well as bulk breaking and delivering LNG to other parts of the Mediterranean.
Week 13 02•April•2020 w w w . N E W S B A S E . c o m P11
