Australian government plans new LNG terminal in Darwin

Market: Hydrogen, Natural gas
12/04/22

The Australian conservative coalition government today pledged to spend up to A$1.5bn ($1.12bn) to build a LNG export terminal as part of new port infrastructure at Darwin in the Northern Territory (NT).

The plan includes additional facilities to manage hydrogen exports and critical mineral processing, as well as refinery capabilities. The pledge is based on the coalition winning the 21 May federal election.

The Liberal-National party coalition government sold the existing Darwin port, which includes export terminals for the 3.7mn t/yr Darwin LNG and 8.9mn t/yr Ichthys LNG plants, to Chinese infrastructure and energy group Landbridge in 2016.

Trade and political relations between Australia and China have soured since the Landbridge deal, and Australia has attempted to tighten rules around the sale of strategic assets to China.

"Our investment will deliver this, supporting port infrastructure, including a wharf and offloading facility, and dredging of the shipping channel," Australian deputy prime minister Barnaby Joyce said in Darwin where he was campaigning for next month's election. There is no guarantee that the LNG terminal will be built as many promises are made in the heat of an election campaign.

The viability of another LNG export terminal at Darwin would also depend on finding economic gas reserves. The coalition government is very keen for upstream firms to undertake more exploration work in the onshore Beetaloo basin in the NT. Early-stage geological work has estimated significant gas resources within the Beetaloo basin, which is around 600km southeast of Darwin.

By Kevin Morrison

Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

News

28/03/25

US consumer confidence down on policy angst

Houston, 28 March (Argus) — The University of Michigan's gauge of consumer sentiment fell in March to the lowest level since November 2022, led by a slump in expectations over the "potential for pain" from US economic policies introduced by the new administration. Sentiment fell to 57, down from 64.7 in February and 79.4 in March 2024, according to the University of Michigan's consumer sentiment survey released Friday. The final reading for March was lower than the preliminary reading. The sentiment index fell to a record low of 50 in June 2022 on inflation concerns. The index of consumer expectations fell to 52.6, the lowest since July 2022, from 64 in February and 77.4 in March last year. The expectations index has lost more than 30pc since November last year. "Consumers continue to worry about the potential for pain amid ongoing economic policy developments," the survey director Joanne Hsu said. The decline "reflects a clear consensus across all demographic and political affiliations: Republicans joined independents and Democrats in expressing worsening expectations … for their personal finances, business conditions, unemployment and inflation," Hsu said. Current economic conditions slipped to 63.8 in March from 65.7 in February and 82.5 last March. Two thirds of consumers expect unemployment to rise in the year ahead, the highest reading since 2009. Year-ahead inflation expectations jumped to 5pc this month, the highest reading since November 2022, from 4.3pc last month. The University of Michigan survey comes three days after The Conference Board's preliminary Consumer Expectations Index fell in March to its lowest in 12 years, to below a threshold that "usually signals" a recession. By Bob Willis Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Find out more

News

ISCC aware EU mulling certification recognition: Update

28/03/25

News

28/03/25

ISCC aware EU mulling certification recognition: Update

Adds comment from the European Commission London, 28 March (Argus) — The ISCC, an international certification system for sustainability, said today that it is aware of discussions in an EU committee about future recognition of its certification for waste-based biofuels. It said there is no legal basis for any planned measures. Industry participants said yesterday that the EU Committee on Sustainability of Biofuels, Bioliquids, and Biomass Fuels is drafting implementing regulations that would include a two-and-a-half year pause to obligatory acceptance of ISCC EU certification for waste-based biofuels. "This action is said to be subject to further legal scrutiny and will need approval by member states," the ISCC said. Currently, member states accept EU-recognised voluntary scheme certification as proof that fuel or feedstocks are compliant with the bloc's Renewable Energy Directive (RED) sustainability criteria. Market participants told Argus that discussions have centred around giving individual countries more choice. "Other voluntary schemes would not be able to fill the gap. The measure would be a severe blow to the entire market for waste-based biofuels and would seriously jeopardise the ability of the obligated parties to comply with blending mandates," the ISCC said. The ISCC has been singled out in a discriminatory way and has supported European Commission and member states' investigations into alleged fraud, it said. "We are more than surprised by this step […and] are unable to see the rationale of the planned measure, which seems ad hoc and baseless," it added. Secretary-general of the European Biodiesel Board (EBB) Xavier Noyon told Argus that, if confirmed, the suspension would affect thousands of operators. "At this time, member states are refusing to comment, and we call on the commission to urgently clarify any decisions of this nature that are on the table," he said. The EBB published its own proposed revision to the RED implementing legislation last month, which expanded the supervisory power of member states over voluntary schemes and certification bodies. The European Commission confirmed that the committee met on 26 March to discuss sustainable certification, promotion of biofuels, avoidance of double counting, and alleged fraud. "We are still working on our examination of this alleged fraud in biodiesel imports from China," said commission energy spokesperson Anna-Kaisa Itkonen. But the commission has not taken any decision yet and cannot allude to "possible" scenarios, she said. By John Houghton-Brown, Simone Burgin and Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

US H2 projects stall, incentives fall short: Technip

28/03/25

News

28/03/25

US H2 projects stall, incentives fall short: Technip

London, 28 March (Argus) — Many US hydrogen project developers have paused or cancelled plans after finding costs were too high and government incentives were insufficient, even before President Donald Trump's return to the White House added uncertainty, Paris-listed contractor Technip Energies has said. Developers rushed to hire contractors for project studies in 2022-23 in a wave of optimism after the US announced tax credits for hydrogen production , but many projects were shelved or suspended between the end of 2023 and mid-2024. This came as companies realised the true cost of many items not limited to CO2 capture, hydrogen storage, and hydrogen liquefaction, Technip Energies' director Randy Kessler said. Multiple developers hired Technip for feasibility studies and engineering designs so it witnessed the drop-off in project plans first hand, Kessler said. Renewable hydrogen projects faced the most challenges, but gas-based projects with carbon capture and storage (CCS) "did not fare too well either", Kessler said. "Nearly all" renewable hydrogen projects were suspended when true capital and operating costs became known, especially compared with conventional 'grey' hydrogen, Kessler said. "Economics generally prevail in the long run, and at 5-8 times the cost of grey H2 production, most big players and project developers found out the incentives did not cover the gap," he said. Most of Technip Energies' clients pursuing CCS-enabled projects eventually asked for estimates for conventional grey hydrogen plants, with "pre-investment" to add CO2 capture units in the future, Kessler said. Washington made matters worse for developers with "confusing" incentives and delays in finalising eligibility rules for the tax credits, which it only settled on in early 2025 , just weeks before the change in administration. "The people who made money were the consultants who told people what it all meant," Kessler said. The late-2024 US election became both an "issue" and an "an excuse" for developers to explain the lack of progress, Kessler said. Many US firms complained that political uncertainty during the election period hampered their business decisions. Politically powerful energy companies lobbying Washington for "appropriate levels of incentives to cover the gap" or relaxing tax credit rules to lower project costs would be the most likely way to revive the sector, Kessler said. The US could consider setting mandates, but this is unlikely unless there is "more global buy-in", he said. Few regions, aside from the EU, have proposed mandates, and even there they have not been firmly implemented. But US firms and industrial groups are focusing lobbying efforts on protecting the hydrogen tax credits rather than quibbling over the rules, US sources said. The return of Trump to the White House made the future of the tax credits less certain because of his preference for boosting US fossil fuel output over investing in clean energy. Another contracting firm, Black & Veatch, recently said it was unsurprised to see many speculative projects fall by the wayside, and that the best route forward is better quality and modestly-sized projects with clear offtakers. By Aidan Lea Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

ISCC aware of EU talks on certification recognition

28/03/25

News

28/03/25

ISCC aware of EU talks on certification recognition

London, 28 March (Argus) — The ISCC, an international certification system for sustainability, said today that it is aware of discussions in an EU committee about future recognition of its certification for waste-based biofuels. It said there is no legal basis for any planned measures. Industry participants said yesterday that the EU Committee on Sustainability of Biofuels, Bioliquids, and Biomass Fuels is drafting implementing regulations that would include a two-and-a-half year pause to obligatory acceptance of ISCC EU certification for waste-based biofuels. "This action is said to be subject to further legal scrutiny and will need approval by member states," the ISCC said. Currently, member states accept EU-recognised voluntary scheme certification as proof that fuel or feedstocks are compliant with the bloc's Renewable Energy Directive (RED) sustainability criteria. There has been no official statement from the European Commission but market participants told Argus that discussions have centred around giving individual countries more choice. "Other voluntary schemes would not be able to fill the gap. The measure would be a severe blow to the entire market for waste-based biofuels and would seriously jeopardise the ability of the obligated parties to comply with blending mandates," the ISCC said. The ISCC has been singled out in a discriminatory way and has supported European Commission and member states' investigations into alleged fraud, it said. "We are more than surprised by this step […and] are unable to see the rationale of the planned measure, which seems ad hoc and baseless," it added. Secretary-general of the European Biodiesel Board (EBB) Xavier Noyon told Argus that, if confirmed, the suspension would affect thousands of operators. "At this time, member states are refusing to comment, and we call on the commission to urgently clarify any decisions of this nature that are on the table," he said. The EBB published its own proposed revision to the RED implementing legislation last month, which expanded the supervisory power of member states over voluntary schemes and certification bodies. By John Houghton-Brown and Simone Burgin Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

US mulls cutting funds to H2 hubs outside of GOP states

27/03/25

News

27/03/25

US mulls cutting funds to H2 hubs outside of GOP states

Houston, 27 March (Argus) — The US Department of Energy (DOE) is considering cutting funding to hydrogen hubs that are located in primarily Democratic states, while sparing those mostly spread across Republican states, according to a list shared with Argus . A table circulating among officials shows hubs that are to receive federal funding labeled as either "cut" or "keep." Out of the seven hubs, only three are set to "keep": HyVelocity, in Texas and Louisiana, the Appalachian hub spanning Ohio, Kentucky and West Virginia and the Heartland hub spread across Minnesota, South Dakota and North Dakota. The hubs that may lose federal support include California's ARCHES; the Pacific Northwest Hydrogen Association (PNWH2) spanning Oregon, Washington and Montana; the Midwest hub encompassing Illinois, Indiana and Michigan, and the Mid-Atlantic hub in Pennsylvania, Delaware, and New Jersey. With the exception of the Midwest hub, most of the hubs facing potential cuts would use renewable and nuclear power to produce hydrogen. Most of the projects in the hubs on the "keep" list would be powered by natural gas and use carbon capture and storage (CCS) facilities to reduce emissions. The DOE did not immediately respond to requests for comment. Fuel Cell and Hydrogen Energy Association (FCHEA) chief executive Frank Wolak said the list came from DOE but cautioned the department's plans are still unclear."We're aware a list has been created that shows four of seven hubs being cut," said Wolak. "We haven't seen anything formal and don't understand exactly what is the DOE intention." Hydrogen hub funding advanced by the administration of former president Joe Biden was expected to come under scrutiny after President Donald Trump paused disbursements and ordered a review of clean-energy initiatives. Federal funding for the hubs grew out of the bipartisan Inflation Reduction Act and the Infrastructure and Investment Jobs Act, which together dedicated $8bn to jump start domestic hydrogen production in industrial clusters from the east to west coasts. The funding was structured to pay out to the hubs over four phases spanning a decade, with disbursements dependent upon projects meeting defined objectives related to operational progress and private-investment commitments. The first tranches to the seven hubs, totaling over $20mn, have been delivered but the list of potential cuts puts the fate of the second phase into doubt. "So far the Trump administration hasn't attempted to claw back that phase-one funding," said Sara Gersen, senior attorney for Earthjustice. "The question is, what happens in 2026 when they try to renew contracts for phase 2?" ARCHES chief executive Angelina Galiteva said the California hub "remains committed to working with our partners to establish a secure, reliable and competitive hydrogen ecosystem". Spokespeople for the others hubs vulnerable to losing federal funds did not immediately respond to requests for comment. However, at least one of the hubs put out a public statement highlighting how its goals align with the administration's objectives. "Many of these opportunities will support rural communities" and "advance American energy independence", the Pacific Northwest hub said in a social media post. Environmental advocates argue that the climate benefits from hydrogen originating from natural gas with CCS, the technology proposed for projects on the "keep" list, evaporate when net emissions are taken into account and do not justify the potentially billions of dollars in federal support they may receive when compared to other decarbonization techniques. "Spending billions of dollars on untested carbon capture technology in applications with no net-climate benefit is a waste of taxpayer money," said Anika Juhn, IEEFA energy data analyst and co-author of the report Blue Hydrogen's Carbon Capture Boondogle . "Building out renewable power infrastructure, improving energy efficiency, and reducing methane leakage from the natural gas system are more cost-effective and proven approaches to a clean energy transition." For now, both fossil-fuel based and renewable energy companies have been lobbying the Trump administration to keep clean energy incentives enacted by the IRA without differentiating how the hydrogen is produced. The potential cut to federal funding is not expected to affect industry support for the most lucrative incentives that come in the form of tax cuts, such as the support that has coalesced around protecting the 45V hydrogen production credit, said Wolak. "I don't see any change to the agenda of 45V, that effort is primary," said Wolak. "I see an effort perhaps arising to define the hubs and the merit of the hubs rising parallel to the 45V effort." FCHEA is advising its members that may be affected by hub funding cuts to contact their congressional representatives, Wolak said. By Jasmina Kelemen Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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