Page 10 - GLNG Week 48 2020

GLNG COMMENTARY GLNG

would put a sizeable dent in the 500mn cubic In the Northern Territory, meanwhile, one
feet (14.16 mcm) per day supply shortfall that developer in Australia’s Beetaloo shale play has
AEMO has warned could emerge in the East begun talking about the prospect of producing
Coast market by the middle of the decade. 100 mmcf (2.83 mcm) per day of shale gas from
Concerns over shortages helped AIE’s pro- just 5-10 wells.
posed terminal secure a Critical State Signifi- Tamboran Resources CEO Joel Riddle told
cant Status (CSSI) designation in 2018. the Petroleum Economist at the start of this
The Australian Department of Industry, Sci- month that his company was on the verge of
ence, Energy and Resources, meanwhile, said a acquiring Sweetpea Petroleum, giving it full
new report last week that the projected supply control of exploration permit (EP) 136. The
tightness on the East Coast market would likely company wants to drill its first operated well
support the development of several planned on the block, in the “core Beetaloo”, in the third
LNG import terminals, with four of five projects quarter of 2021.
having reached the feasibility stage. Tamboran is confident about its new block’s
“These projects are aiming to start commer- potential after seeing flow test results from the
cial operations by 2022 or 2023, in order to meet first vertical well drilled on the adjacent EP161,
an anticipated gas shortage on the East Coast which is operated by Santos with a 75%, while
market – although it is unlikely that all five pro- the junior owns the remaining 25%.
jects will go ahead,” the report added. Tamboran said in October that the Tanumbir-
Import projects have been seen as a silver ini-1 well had achieved an average flow rate of
bullet to the country’s diminished supplies, with 2.3 mmcf (65,000 cubic metres) per day during
upstream moratoria, LNG export capacity addi- the first 90 hours of testing following a more
tions and dwindling investment in domestic than 160-day shut-in. Riddle added that flow
focused upstream projects having been blamed results from Tanumbirini-1 indicated that a
at one time or another for the deteriorating single well in the core Beetaloo could produce Concerns over
situation. in excess of 10 mmcf (283,000 cubic metres)
NSW already relies on its East Coast neigh- per day and a total of more than 10 bcf (283.2 shortages helped
bours to supply more than 95% of its gas needs mcm) over its whole lifespan. This would allow AIE’s proposed
and as production dries up in Victoria, energy just 10 wells from the core Beetaloo to cover
planners in Sydney are facing some difficult 20% of AEMO’s projected 500 mmcf projected terminal secure
decisions. Backing import projects even as shortfall.
the country became the world’s largest LNG With new domestic production expected to a Critical State
exporter is one such decision, but another has come on stream within the next few months and
been Sydney’s decision to throw its weight four other LNG import projects in the works, Significant Status
behind the controversial Narrabri coal-bed the Port Kembla terminal may struggle to secure (CSSI) designation
methane (CBM) project. the volume of sales traditionally required to
reach a final investment decision (FID) on an in 2018.
What next? import project.
The Australian government approved Santos’ If so, that could explain Squadron’s October
AUD3.6bn Narrabri project on November 24, 30 announcement that it had bought Marube-
noting that it had been satisfied with the NSW ni’s 30.1% and JERA’s 19.9% stake in the pro-
Independent Planning Commission’s (IPC) own ject. By taking full control of the development,
assessment and approval of the project in Sep- Squadron can gamble on there being enough
tember. Santos has said the project could deliver future demand to justify a varied portfolio
70 PJ (1.82 bcm) per year of additional gas to the of new East Coast supply projects, including
domestic market by 2023. import terminals.™

P10 www. NEWSBASE .com Week 48 04•December•2020