Australia’s Santos wins costs in gas pipeline case

: Natural gas
24/11/28

Australian independent Santos will receive millions of dollars in legal costs, months after the Federal Court ruled in the firm's favour regarding a lawsuit intended to derail its $4.6bn Barossa gas field in the Timor Sea.

Environmental law group the Environmental Defenders Office (EDO) must pay Santos' legal bills of slightly more than A$9mn ($5.8mn), 100pc of the company's costs incurred defending a 2023 court case.

The EDO's lawyers claimed Barossa's gas export pipeline required a new environmental plan because of cultural heritage matters, but the court found the action brought on behalf of three Tiwi islander Aboriginal people failed to establish any new facts following a cultural survey along the route of the 262km pipeline.

Justice Natalie Charlesworth dismissed the independence and credibility of an EDO-commissioned underwater map showing cultural sites, with court papers released showing an expert offered to move the location of one such site so it would conflict with the pipeline.

The decision may have a chilling effect on further legal challenges to oil, gas and coal projects in Australia. Court action planned against Australian independent Woodside's $12.5bn Scarborough project offshore Western Australia was called off in August, with the applicant labelling the case as "expensive and risky".

Australia's conservative Coalition alliance has promised to end taxpayer funding for the EDO if it wins control of federal parliament in 2025. The October 2022 budget pledged A$9.8mn over four years and A$2.6mn/yr in ongoing funding to the EDO and fellow national legal organisation Environmental Justice Australia.

Santos plans to bring its $4.6bn, 84pc complete Barossa field in the Timor Sea on line in July-September 2025, a slight delay from the previously guided first half of 2025. The field will provide feedstock for the 3.7mn t/yr Darwin LNG terminal, which exported its final cargo from the Bayu-Undan field in 2023.

By Tom Major

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24/11/28

Japan’s Saibu Gas to launch terminal expansion in 2029

Singapore, 28 November (Argus) — Japanese gas retailer Saibu Gas expects to start commercial operations at its Hibiki terminal expansion between the second and third quarter of 2029. The firm has reached a final investment decision (FID) for the Hibiki terminal expansion, the firm said on 28 November. Saibu's expansion plan includes building a third LNG storage tank with a capacity of 230,000m³, as well as gas production and LNG tank truck-loading facilities. The total project cost is estimated to be around ¥50bn ($330m), and construction will start around summer 2025. The firm issued the tender for expansion in March. This is part of the firm's efforts to meet domestic gas demand "for carbon neutrality", Saibu said. It is also considering introducing e-methane in the future to further enhance its decarbonisation efforts. Saibu Gas plans to expand its global business by utilising the Hibiki terminal to reload cargoes to sell to overseas customers using isotank containers . The terminal has two existing 180,000m³ tanks and sits at Kita-Kyushu in west Japan's Fukuoka prefecture. It is jointly operated by Kyushu Electric and Saibu Gas. The terminal will supply regasified LNG through pipelines to the new 620MW Hibiki LNG-fired power plant at Hibikinada, in the southern Fukuoka prefecture. The facility is expected to start commercial operations in 2026 and it is operated by Hibiki Power, a joint venture between Kyushu (80pc) and Sabu (20pc). By Naomi Ong Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Japan’s Kline receives new LNG-fuelled car carrier

24/11/28

Japan’s Kline receives new LNG-fuelled car carrier

Tokyo, 28 November (Argus) — Japanese shipping company Kawasaki Kisen Kaisha (Kline) received an LNG-fuelled car carrier on 28 November, as it looks to use more lower-carbon marine fuels as part of its decarbonisation efforts. Kline received the car carrier Pontus Highway with a capacity of 7,000 vehicles from Chinese shipbuilder China Merchants Jinling Shipyard. The vessel is equipped with a dual fuel engine and is designed to curb emissions of CO2 by 25-30pc, sulphide oxide by almost 100pc and nitrogen oxide by around 75pc, compared to conventional fuel oil. Kline previously commissioned the LNG-fuelled car carrier Nereus Highway , also built by China Merchants Jinling Shipyard, in the first half of August . It received LNG-fuelled car carrier Poseidon Highway , built by domestic shipbuilder Imabari Shipbuilding, on 1 October . Kline said LNG-fuelled ships have an advantage in securing fuel as supply facilities for these vessels are well-established at ports, especially compared to methanol- and ammonia-fuelled vessels. By Nanami Oki Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Uruguay's left-wing candidate wins presidency

24/11/25

Uruguay's left-wing candidate wins presidency

Montevideo, 25 November (Argus) — The left-wing opposition Frente Amplio will return to power in Uruguay after winning a hard-fought run-off election on 24 November. Yamandu Orsi, former mayor of the Canalones department, was elected president with close to 51pc of valid votes. He defeated Alvaro Delgado, of the ruling Partido Nacional. The Frente will control the senate, but will have a minority in the lower chamber. It last governed from 2015-2020. Orsi will take office on 1 March in one of Latin America's most stable economies, with the World Bank forecasting growth at 3.2pc for this year, much higher than the 1.9pc regional average. He will also inherit a country that has been making strides to implement a second energy transition geared toward continued decarbonization and new technologies, such as SAF and low-carbon hydrogen. He will also have to decide on future oil and natural gas exploration. Uruguay does not produce oil or gas, but has hopes that its offshore mimics that of Nambia, because of similar geology. TotalEnergies has made a major find there. The Frente's government plan states that it "will deepen the energy transition, focusing on the use of renewable energy, and decarbonization of the economy and transportation … gradually regulating so that public and cargo transportation can operate with hydrogen." On to hydrogen Uruguay is already the regional leader with renewable energy, with renewables covering 100pc of power demand on 24 November, according to the state-run power company, UTE. Wind accounted for 49pc, hydro 35pc, biomass 10pc and solar 6pc. Orsi will need to make decisions regarding high-profile projects for low-carbon hydrogen, as well as a push by the state-run Ancap to get private companies to ramp up oil and gas exploration on seven offshore blocks. The industry, energy and mining ministry lists four planned low-carbon hydrogen projects, including one between Chile's HIF and Ancap subsidiary Alur that would have a 1GW electrolyzer. Germany's Enertrag is working on an e-methanol project with a 150MW electrolyzer, while two Uruguayan groups are working on small projects with 2MW and 5MW electrolyzers, respectively. The Orsi government will also need to decide if it continues with Ancap's planned bidding process for four offshore blocks, each between 600-800km² (232-309 mi²), to generate up to 3.2GW of wind power to produce 200,000 t/yr of green hydrogen on floating platforms. The Frente has been noncommittal about the future of seven offshore oil and gas blocks, including three held by Shell, two by the UK's Challenger — which recently farmed in Chevron — and one each by Argentina's state-owned YPF and US-based APA Corporation. The Frente's government plan states that "a national dialogue will be called to analyze the impacts and alternatives to exploration and extraction of fossil fuels." By Lucien Chauvin Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Trump’s ‘drill, baby, drill’ risks industry pushback

24/11/25

Trump’s ‘drill, baby, drill’ risks industry pushback

New York, 25 November (Argus) — The biggest obstacle standing in the way of president-elect Donald Trump's campaign pledge to unleash the full force of the nation's oil potential could end up being some of his biggest cheerleaders in the industry. Top energy executives are broadly supportive of Trump's plans to slash red tape and adopt pro-fossil fuel policies, such as opening up more federal land to drilling and speeding up the permitting process for oil and gas projects. But his plea for producers to pump flat-out in order to help bring down energy costs might quickly bump up against reality. The industry is sitting tight against an uncertain macro-economic backdrop, with crude prices on the back foot and a global oil market that is forecast to be in surplus next year. Shale bosses that learnt the hard way the lessons of prior boom-and-bust cycles are in no hurry to repeat the mistakes of the past. "It's kind of hard to look at a world that has 4mn-6mn b/d of surplus capacity on the sidelines and try to think we can grow effectively into that," US independent Diamondback Energy chief executive Travis Stice says. For the time being, shareholders are in the driving seat and generating cash flow remains the rallying cry. "We're going to just stay conservative and let volume be the output of cash flow generation," Stice says, summing up the mood of many of his peers. As a result, Trump might have his work cut out for him trying to persuade US producers to open up the floodgates. Measures such as rolling back environmental regulations will only help at the margin. One difference from Trump's first term is that the industry is emerging from a frantic round of consolidation that has resulted in ownership of vast tracts of the shale patch falling into the hands of fewer but larger public operators, for whom capital discipline is sacrosanct. Last year's 1mn b/d boost to overall US crude production took market watchers by surprise, but the rate of growth is slowing even as output continues to hit new record highs. ExxonMobil and Chevron are deploying their vast scale and technology prowess to ramp up output from the Permian basin of west Texas and southeastern New Mexico, but the rest of the industry is playing it steady. Cycle path For the most part, public companies were hesitant to set out their stalls for 2025 during recent third-quarter earnings calls. Those that have outlined tentative plans indicate a desire to maintain the status quo, leading to expectations for little or minimal growth. "Nearly every company cited continued improvements in cycle times that are allowing for more capital-efficient programmes," bank Raymond James analyst John Freeman says. "Efficiency gains show no signs yet of ending." US independent EOG Resources forecasts another year of slower US liquids growth on the back of a lower rig count and dwindling inventory of drilled but uncompleted wells. "The rig count really hasn't moved in just about a year now," chief executive Ezra Yacob says. "That's really the biggest thing that's informing our expectation for slightly less growth year over year in the US." In the immediate future, weaker oil prices might translate into slower growth for the Permian, delaying the inevitable peak in overall US crude production, producer Occidental Petroleum chief executive Vicki Hollub says. But the top-performing US basin will continue to lead the way further out while other basins lose their edge. In a fast-maturing shale sector where the priority is to lower costs and maximise returns, that suggests a flat production growth profile going forward. "We see no change to the intermediate-term drilling path for oil set by the fundamentals," bank Jefferies analyst Lloyd Byrne says. By Stephen Cunningham Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Opinion: Bridging the divide

24/11/22

Opinion: Bridging the divide

Cop summits put the gap between developed and developing countries in stark relief and demand a strong moderator Baku, 22 November (Argus) — The UN's Cop climate summits always involve a high-stakes test of multilateralism. But the Cop 29 gathering that is crawling towards its conclusion in Baku this week has pushed this concept to its limit. The summit faced serious challenges even before it kicked off. Azerbaijan took on the presidency relatively late in the day and the country's president, Ilham Aliyev, irritated some delegates with an opening speech that lauded oil and gas as a "gift from God" and railed against "western fake news". His comments on European nations' Pacific island territories prompted France's energy minister to boycott the talks, while the Cop chief executive was caught on film trying to facilitate fossil fuel deals. And the broader geopolitical background for the gathering was, of course, "grim", as EU climate commissioner Wopke Hoekstra noted, even before delegates tackled the summit's key discussion topic — money. At the heart of this year's Cop is the need to agree a new climate finance goal — a hugely divisive subject at the best of times. Discussions start with countries' wealth, take into account historical responsibility for emissions, and often end up with accusations of neocolonialism and calls for reparations. Figuring out who pays for what is crucial to advancing any kind of meaningful energy transition — and is hence a regular Cop sticking point. Developing countries have long argued that they are not able to decarbonise or implement energy transition plans without adequate financing, and they are prepared to hold other issues hostage to achieve this. Equally, developed countries will not budge on finance until stronger emissions cuts are pledged. Cop summits throw the developed/developing world divide into stark relief as well as shine an unforgiving light on weak management and oversight of Cop debate — an event where every country has an equal vote and needs a strong moderator to bridge that deepening developed and developing world division. This year's summit falls between two much more heavily-hyped Cops, and next year's host Brazil has already taken centre stage, boosted by also holding the G20 presidency. Cop 29 president Mukhtar Babayev asked Brazil and 2021 host the UK to help ensure a balanced outcome, while a strong focus on climate at this week's G20 summit in Rio de Janeiro lent some support to discussions in Baku. More challenges loom. US president-elect Donald Trump has threatened to pull the US — the world's second-largest greenhouse gas emitter — out of the UN Paris Agreement for a second time, and there are fears that fellow G20 member Argentina might quit too. But the Cop process has dealt with some of these challenges before — it is built to withstand a term or two of an unsympathetic world leader, and any exits from the Paris accord could galvanise others to step up their policy commitments, several delegates in Baku suggest. And the issue overshadowing it all — and the reason nearly 200 countries still turn up each year — is not going away. The world has already warmed by around 1.3°C above pre-industrial levels and this year is set to smash last year's record as the hottest. Leaders from both developed and developing countries spoke of catastrophic floods, droughts, heatwaves and storms. It has become a truism, but when it comes to the tricky issue of money, the only thing more daunting than the cost of tackling climate change is the cost of ignoring it. Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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