Page 10 - AsianOil Week 29 2020

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The central government has said it does not
want to see the country return to lockdown, the upgraded plant will eventually become
and is watching Victoria’s second quarantine a gas processing hub for the offshore Otway
effort with some trepidation. While a recovery Basin.
in gas demand may take some years to reach First gas is anticipated in the current quar-
previously projected levels it is still unclear ter, though Cooper has said uncertainties
how the pandemic will affect future domestic stemming from coronavirus (COVID-19)
East Coast supply projects. could delay that timetable.
Cooper, however, is betting on the current
projected supply and demand imbalance, What next
having signed off this week on the Minerva The Australian upstream has been hit hard by the
Gas Plant project alongside Japanese partner downturn, with Woodside Petroleum, Santos,
Mitsui. Origin Energy and Oil Search having all issued
impairment charge warnings.
Project potential The industry is trying to find its footing
Cooper said on July 20 that the two firms amid continued local and international eco-
would spend a total of AUD55mn ($39.2mn) nomic uncertainty. The sector faces a chal-
on upgrading of the plant, including the lenging near-term future in which it has to
AUD17.8mn ($12.7mn) the 50:50 partners spent make investment decisions in a volatile polit-
not only on acquiring it in December 2019 but ical and economic climate overshadowed by
also on carrying out subsequent front-end engi- unpredictable government responses to unex-
neering and design (FEED) work. pected viral outbreaks.
Cooper said the investment would allow With no clear idea of when the global
the plant to process gas produced from the health outlook will stabilise, and talk of a
existing Casino, Henry and Netherby fields in vaccine little more than a panacea for public
the VIC L24/L30 licence, which Cooper and anxiety at this point, making any long-term
Mitsui jointly own. The partners will invest investment decision is an incredibly tricky
AUD37mn ($26.4mn) in the plant’s upgrade. task. In this light, Cooper’s decision to commit
Minerva’s revamp should pave the way for to a new supply project targeting domestic gas
16 PJ (416.78 bcm) of currently undeveloped demand speaks to a continued confidence in
gas to be processed, with the company saying AEMO’s market forecast.™

P10 www. NEWSBASE .com Week 29 23•July•2020