Papua LNG FID set for late 2025: Australia’s Santos
A final investment decision (FID) on the 5.6mn t/yr Papua LNG project in Papua New Guinea is likely to be taken in late 2025, Australian independent Santos' chief executive Kevin Gallagher told an investor call marking the firm's half-year results to 30 June.
The joint-venture partners are working to reset the initial engineering phase of the project, Gallagher said, with design optimisations under way to reduce capital expenditure on Papua LNG.
Santos' "best estimate" is that the project partners would reach an FID towards the end of 2025, Gallagher said. The preferred development concept continues to include processing up to 2mn t/yr of Papua LNG's raw gas through the 6.9mn t/yr ExxonMobil-operated PNG LNG plant.
The $10bn project to build Papua New Guinea's second LNG export terminal was initially expected to reach an FID by early 2024 ahead of first production in early 2028, but this was postponed in April by the need for more commercially viable engineering, procurement and construction contracts, operator TotalEnergies said.
TotalEnergies holds a 37.55pc stake in Papua LNG, with ExxonMobil controlling 37.04pc, Santos 22.83pc and Japanese upstream company JX Nippon 2.58pc.
Related news posts
Malaysia’s Petronas achieves first gas at Kasawari
Malaysia’s Petronas achieves first gas at Kasawari
Singapore, 21 August (Argus) — Malaysian state-owned Petronas has started first gas production at the Kasawari field at an initial flow rate of 200mn ft³/d (5.6mn m³/d), the firm announced today. The field is located in Block SK316, approximately 200km off the coast of Sarawak. It contains an estimated 10 trillion ft³ of natural gas resources, with a gas sales rate of 545mn ft/d, according to Petronas. Petronas Carigali, a subsidiary of Petronas, holds a 90pc stake in the Kasawari field and is the operator. Exploration and Production Malaysia Venture (EPMV) holds the remaining 10pc stake. The Kasawari gas field development includes a central processing platform, a flare platform and a wellhead platform, which are all interconnected. Gas from the field is exported to a new riser platform at the E11 production hub through an 81km carbon steel pipeline for further gas delivery to customers in Bintulu, Petronas said. The Kasawari gas field is a crucial feed source for the Petronas LNG complex in Bintulu and in addressing the increasing domestic demand for gas, said Petronas. Carbon capture and storage Petronas is also still looking to develop its carbon capture and storage (CCS) capabilities, including at the Kasawari field, even as it looks to maximise fossil fuel production. The firm on 20 August announced it signed a joint study and development agreement with Abu Dhabi's state-controlled Adnoc and UK decarbonisation firm Storegga, to evaluate the CO2 emission storage capabilities of saline aquifers and construction of CCS facilities in the Penyu basin, offshore peninsular Malaysia. The agreement targets at least 5mn t/yr of CO2 capture and storage capacity by 2030. The scope of the agreement includes a CO2 shipping and logistics study, geophysical and geomechanical modelling, reservoir simulation and containment research while exploring the application of advanced technologies, including artificial intelligence, to enhance storage capacity, Petronas said. Malaysia has a target of net zero emissions by 2050. Petronas is a member of Malaysia's National Energy Transition Roadmap committee, which has identified CCS as one of six energy transition levers to enable the country to be sustainable, low-carbon and resilient. In line with this, Petronas has signed multiple deals with foreign firms to jointly develop CCS projects with Malaysia, including Japanese firms Jera, Mitsui , and Japex . Petronas is also involved in cross-border projects with South Korean firms. Malaysia has a geological abundance of deep saline aquifer reservoirs, which should allow for the development of large-scale, permanent CO2 storage solutions. This latest agreement will significantly accelerate regional deployment of CCS and if successful, will lay the foundations for a regional CCS hub that serves both domestic and international emitters, Petronas added. By Joey Chan Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Bulk carriers mostly score low CII in 2023
Bulk carriers mostly score low CII in 2023
New York, 20 August (Argus) — More than half of bulk carriers scored carbon intensity indicator (CII) grades of C or lower on an A-E scale in 2023, according to International Maritime Organization (IMO) data. About 61pc, or 9,127 of all bulk carriers sized 5,000 gross tonnes (gt) and over that reported their energy efficiency, scored C, D or E on the CII scale in 2023, according to the IMO data. IMO's CII regulation, which came into force in January 2023, requires vessels over 5,000 gt to report their carbon intensity, which is then scored from A to E. A and B vessel scores are regarded as superior energy efficiency, while C, D and E are considered moderate to inferior scores. The scoring levels are lowered yearly by about 2pc, so even a vessel with no change in CII could drop from from C to D in one year. If a vessel receives a D score three years in a row or E score in the previous year, the vessel owner must submit a corrective actions plan. To improve its CII score, a ship owner could reduce its speed and burn low-carbon fuels, among other solutions. Global marine fuel demand from vessels of 5,000 gt and above dropped by 1pc to 211.1mn t in 2023, down from 213.4mn t in 2022, according to the latest IMO data. The drop could be attributed to the global economic slow-down in 2023, as well as vessels employing slow steaming to reduce marine fuel consumption. Residual fuel oil bunker demand was down by 2pc to 170.9mn t in 2023 from the previous year, according to IMO data. The IMO does not report separately high-sulphur and low-sulphur fuel oil demand. Global marine gasoil (MGO) demand fell by 6pc to 26.6mn t. An increase in methanol and LNG for bunkering demand offset some of the conventional marine fuel declines. LNG for bunkering demand rose by 18pc to 12.9mn t and methanol increased by 2.6 times to 93,876t. In 2023, container ships, bulk carriers and tankers accounted for 31pc, 30pc and 21pc, respectively, of global residual fuel oil bunker demand. Containers ships and bulk carriers accounted for the majority of the MGO demand, 18pc and 15pc, respectively. Tankers accounted for 93pc, or 87,319t, of total methanol demand and LNG carriers accounted for 89pc of LNG for bunkering demand, or 11.5mn t. By Stefka Wechsler Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Montoir LNG restart delayed by pipeline works: Update
Montoir LNG restart delayed by pipeline works: Update
Updates new sendout restart date in paragraph three to 23 August London, 20 August (Argus) — Maintenance at France's 8mn t/yr Montoir LNG import terminal has been repeatedly delayed because of "technical difficulties" relating to the replacement of two sections of a pipeline at the terminal, operator Elengy told Argus . The pipeline links the gas odorisation station and the GRTgaz grid injection station. Gas in France is odorised at all grid network levels, including transmission, rather than solely distribution networks. The works were completed last week, and the terminal is preparing for its cool-down phase, Elengy said. The end of works has been delayed 10 times , and sendout is now scheduled to restart on 23 August. Sendout was due to return on 21 August, according to Elengy nominations earlier today, although this was delayed again to 23 August later in the day. The terminal has been off line since 15 June, and was initially due to resume sendout on 8 July. Sendout from the terminal is nominated to average 154 GWh/d for 21-31 August, down from the 240 GWh/d nominated for the period on 19 August, according to Elengy data ( see sendout graph ). And one delivery for late August has been removed from the schedule ( see stocks graph ). By Martin Senior Montoir sendout nominations Montoir LNG stocks Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Operator takes reins of Kurdish gas field expansion
Operator takes reins of Kurdish gas field expansion
Dubai, 20 August (Argus) — The consortium that operates the Khor Mor gas field in Iraq's semi-autonomous Kurdistan region has issued a termination notice to the Canadian contractor it hired to increase production capacity. The Pearl Petroleum consortium issued the notice to Toronto-listed Enerflex on 19 August after "numerous performance issues" during the execution period of the $806mn engineering, procurement and construction (EPC) contract, according to consortium member Dana Gas. "The ongoing impact of these performance issues has materially affected Enerflex's ability to meet its contractual obligations, leading to unacceptable delays and hindering the progress and timely completion of the Khor Mor gas expansion project," Dana Gas said. Abu Dhabi-listed Dana Gas is one of five companies in the Pearl Petroleum consortium — the others are Sharjah-based Crescent Petroleum, Austria's OMV, Hungary's Mol and German utility RWE. Pearl Petroleum will now take direct control of the expansion project to ensure "it is brought back on track and completed in the timeliest manner", Dana Gas said. The project , which will boost capacity at Khor Mor by 250mn ft³/d to 750mn ft³/d, had been due to deliver first gas in April this year but missed that deadline. All of Khor Mor's gas production to date has been used for power generation in Iraq's Kurdish region, although the Kurdistan Regional Government (KRG) has toyed with the idea of exporting gas . "We will become a net exporter of gas to the rest of Iraq, Turkey and Europe in the near future," KRG prime minister Masrour Barzani said back in 2022, not long after Russia's invasion of Ukraine. As well as the delay to the capacity expansion project, these ambitions have been undermined by repeated drone attacks on Khor Mor in recent years, which often disrupt its production. No group has claimed responsibility for the attacks, but officials typically attribute them to pro-Iran groups within federal Iraq. Iraq has relied on gas import agreements with Iran for several years, and the two countries agreed on a new 50mn m³/d gas supply deal earlier this year. Washington has issued sanctions waivers to allow Iraq to import electricity and natural gas from Iran ever since former president Donald Trump's administration reimposed restrictions on Tehran's energy sector in 2018. Iraq relies on Iran for about a quarter of its energy needs, compared with 40pc three years ago, according to the US State Department. The US sees Iraq becoming self-sufficient in energy by 2030. By Bachar Halabi Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
![Generic Hero Banner](/_next/image?url=%2F-%2Fmedia%2Fproject%2Fargusmedia%2Fmainsite%2Fimages%2F14-generic-hero-banners%2Fherobanner_1600x530_generic-c.jpg%3Fh%3D530%26iar%3D0%26w%3D1600%26rev%3D8ec86dce0f724687bd325a9a917cffae%26hash%3D9FD39B08C9D84A160C91A3649C40A186&w=3840&q=75)
Business intelligence reports
Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.
Learn more