Chevron sells more domestic gas to Alcoa in Australia
Chevron has signed an agreement to supply a further 37PJ (962mn m³) of gas sourced from the three LNG projects located offshore Western Australia (WA) to US aluminium group Alcoa's alumina refineries in the southwest part of the state, adding to an existing contract with Alcoa for 64PJ of gas.
The Chevron gas supply contract is one of three sales and purchase (SPA) agreements that Alcoa has signed with gas producers. Alcoa has signed three new gas SPAs, which together will supply 198PJ of gas to its WA alumina refineries, starting from 2024.
The agreements with Chevron, ExxonMobil and Australian independent Warrego Energy, coupled with existing gas contracts, will supply Alcoa's three refining operations in WA over a 10-year period, Alcoa said. The Alcoa gas deals follow the agreements signed in December 2018.
The gas from Chevron will be sourced from the three LNG projects in WA in which the US major has an interest, including the 15.6mn t/yr Gorgon LNG facility, the 8.9mn t/yr Wheatstone LNG venture and its sixth share in the 16.3mn t/yr North West Shelf (NWS) LNG plant operated by Australian independent Woodside Petroleum.
Warrego signed a binding gas sales agreement (GSA) with Alcoa for the long-term supply of a total of 155PJ of natural gas from the West Erregulla onshore gas field in WA, Warrego said.
The agreement will start on 1 January 2024, subject to a positive final investment decision (FID) by Warrego expected in the first half of 2021, it said. The size and term of the GSA with Alcoa is such that Warrego does not need to secure additional GSAs to support the FID, it said. This foundation contract with Alcoa will underpin gas-processing development and provide the foundation for Warrego to plan additional phases of development, the firm said.
The West Erregulla field is jointly owned by Warrego and Australian independent Strike Energy. The field has been earmarked to provide backfill gas to the NWS LNG venture. ExxonMobil's largest gas interest in WA is its 25pc stake in the Gorgon LNG venture.
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FeCr quarterly benchmark not fit for Asia: Jindal
FeCr quarterly benchmark not fit for Asia: Jindal
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Australia’s Victoria seeks further gas storage capacity
Australia’s Victoria seeks further gas storage capacity
Singapore, 12 September (Argus) — The state Labor government of Victoria will introduce laws to allow offshore gas storage projects in its waters as it grapples with a predicted supply deficit because of declining Bass strait production. Victoria, which is Australia's largest user of household and commercial gas, will allow gas to be stored in empty gas reservoirs offshore in a bid to boost supply security, Victorian energy minister Lily D'Ambrosio said on 11 September. But the state's waters extend three nautical miles offshore, meaning the laws will not cover most of the state's depleted fields in the Otway and Gippsland basins which lie in federally administered zones. Victoria's largest storage is the 26PJ (694.3mn m³) onshore Iona facility in the state's west, owned by domestic gas storage firm Lochard Energy which plans to expand its capacity by 3PJ . But further capacity is needed to help bridge seasonal gaps, with the new laws possibly advancing privately-owned GB Energy's Golden Beach gas project, which could add 12.5PJ of storage to the grid. The Gippsland basin joint venture (GBJV) and Kipper Unit JV which feed the three Longford gas plants in the state's east have historically supplied about 60pc of southern states' gas, but operator Exxon plans to close one of the plants in July-October , cutting the 1.15 PJ/d facility's capacity to 700 TJ/d and further to 420 TJ/d later this decade. GBJV operated just 50 producing wells and six gas platforms in the 2024 southern hemisphere winter, with Exxon expecting a 70pc reduction in the number of wells from 2010 levels by next winter. The Australian Energy Market Operator's (Aemo) 2024 Victorian Gas Planning Report (VGPR) update confirmed the need for greater supply in Victoria, as declining demand would not offset the loss of supply from the GBJV. Peak southern state winter demand exceeds 2 PJ/d, but at full capacity, pipelines linking Queensland state's coal-bed methane fields to the southern states can meet only 20pc of such demand. Coal and gas-dependent Victoria this year approved its first nearshore gas project in a decade as the government softens its anti-gas stance. LNG import plans The possibility of LNG imports is firming in Victoria, with Australian refiner Viva Energy announcing public consultation has begun on its supplementary environmental effects statement (EES) for a planned floating storage and regasification unit, adjacent to its 120,000 b/d Geelong refinery. The Geelong LNG terminal would have the capacity to supply more than half of Victoria's current gas demand, Viva said on 12 September. The terminal's surplus gas could also flow into the connected southern states of South Australia, New South Wales and Tasmania. A public hearing into the proposal, which could see the import of 45 cargoes/yr, is expected to be held in December before an independent committee reports to the state's planning minister next year. Subject to a final investment decision, works could commence in 2026 to deliver first gas for winter 2028, Viva said, aligning with Aemo's expected shortfall of 50PJ in that year. By Tom Major Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Francine spurs more US Gulf oil shut-ins: Update 2
Francine spurs more US Gulf oil shut-ins: Update 2
Update with BSEE production data. New York, 11 September (Argus) — US energy producers curtailed nearly 39pc of offshore Gulf of Mexico oil production as Hurricane Francine bore down on the Louisiana coastline today. About 674,833 b/d of offshore oil output was off line as of 12:30pm ET, according to the Bureau of Safety and Environmental Enforcement (BSEE). Around 907mn cf/d of natural gas production, or 49pc of the region's output, was also off line. Operators evacuated workers from 171 platforms. Companies including Chevron, ExxonMobil and Shell relocated offshore workers and suspending some drilling operations ahead of the hurricane. Ports along the hurricane's path announced traffic restrictions in advance, with some setting out plans to close until it passes, including the port of New Orleans. Francine was last about 60 miles south-southwest of Morgan City, Louisiana, according to a 4pm ET update from the National Hurricane Center. Maximum sustained winds were reported at 90mph. The hurricane is set to make landfall in Louisiana by this evening before moving north across Mississippi on Thursday. Rapid weakening is forecast and Francine is expected to be a post-tropical system on Thursday. With the hurricane's track locked in on Louisiana, the port of Houston reopened to all vessel traffic at 1pm ET Wednesday, a ship agent said, after closing Tuesday afternoon. The Gulf of Mexico accounts for around 15pc of total US crude output and 5pc of US natural gas production. By Stephen Cunningham and Tray Swanson Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
S Korean plate sales into EU revive AD probe talks
S Korean plate sales into EU revive AD probe talks
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