LNG

Australian liquefied natural gas operator Santos has yet to detail any additional progress in its merger talks the Australian peer Woodside Energy for a combination valued at A$88 billion (US$58Bln), though has made advances on the Barossa gas project for Darwin LNG and signed deals with two Japanese companies for the Moomba carbon-capture and storage venture.

European natural gas prices fell back from record highs of the past week while North Asian spot cargo values moved higher as spot shipping charter rates soared, while crude oil increased every day this week to boost long-term LNG contract prices.

Avenir LNG Ltd, a company owned by Norwegian shipping and infrastructure companies, has taken delivery of its first dual-purpose liquefied natural gas bunkering and supply vessel (LBV), the “Avenir Advantage”.

The Western Australia emerging natural gas producer Warrego Energy has guaranteed its way forward by signing a long-term supply agreement with a foundation customer.

Warrego said it signed its deal with Alcoa of Australia, operator of one of the world's largest integrated bauxite mining operation for its West Erregulla gas field in the onshore Perth Basin.

The deal covers 155 petajoules of gas, with supply to begin in January 2024. The length of the agreement has not been disclosed.

Additionally, the binding gas sales deal is subject to a final investment decision on West Erregulla, which is expected in the first half of 2021.

Nevertheless, Warrego said it intended to expand its gas sales portfolio and is continuing to negotiate with other potential customers.

Alcoa operates three alumina refineries, the Kwinana, Pinjarra and Wagerup plants in Western Australia, along with two bauxite mines.

Warrego Group Chief Executive Dennis Donald said the company was delighted with the agreement to supply Western Australia’s largest and most experienced gas buyer.

“Securing such a large-scale and long-term agreement with a top-tier customer like Alcoa is testament to the quality of the West Erregulla gas field and the commercialisation strategy adopted by Warrego and will send a positive signal to other potential gas buyers,” Donald explained.

Donald added that Warrego was well advanced in progressing gas processing options, which include third-party processing and shared infrastructure.

At present, the company is drilling its WE-3 well in the northern area of the West Erregulla field.

At least one further well (WE-4) is scheduled to be drilled in the next 12 months, along with the possibility of a fifth one (WE-5).

Warrego noted that any increase in West Erregulla’s certified resources will be welcomed by the market, and a success at WE-3 could add considerably to the current 513 billion standard cubic feet of gross contingent resources

Warrego has a 50-50 joint venture partner in Strike Energy and recently announced the spudding of its second well in the West Erregulla concession.

The field forms part of a triangle between Mitsui’s & Co.’s Waitsia wells and Beach Energy’s Beharra Springs Deep, which has been claimed to have the potential to hold a world-class hydrocarbon deposit.

West Erregulla-2 was spudded in June 2019 and drilled to a total depth of 5,100 metres, the deepest well drilled in onshore Australia, and flow tests achieved a world-class maximum flow rate of 69 million standard cubic feet of gas per day.

The appraisal drilling campaign was one of a string of positive announcements for Warrego, which was formed in late 2007 by Scottish oil and gas workers Dennis Donald and Duncan MacNiven.

“The major discoveries of the West Erregulla-2 well helped consolidate our position as a key player in the Perth Basin and has laid the foundation for exploration and appraisal success through our current campaign,” stated Donald.

US LNG exports increased to 11 shipments in the past week from six in the previous week, backed by a surge in feed-gas supplies to the main liquefaction plants that reached its highest level since May 2020, though US prices plunged on concern about the high surplus in the latest storage figures.

Sept 17 (LNGJ) - Petronas Gas subsidiary Pengerang LNG plans to issue Islamic medium-term notes (Sukuk Murabahah) to raise up to 3 billion Malaysian ringgit ($724M) for phase two development of its LNG regasification terminal in the southern state of Johor. Petronas owns 65 percent of the project, the Dialog Group 25 percent and the Johor Government 10 percent.

   The issuer under the name Pengerang LNG II has lodged a programme for the 30-year notes with the Malaysian Securities Commission. Initial extra storage of 200,0000 cubic metres capacity is planned at the Pengerang regasification terminal development at the site of an integrated industrial complex comprising an oil refinery and the storage and distribution of oil and petrochemical products.

The Jordan Cove LNG export project in the northwest US state of Oregon and its Pacific Connector Gas Pipeline have filed a petition finding that the Oregon Department of Environmental Quality had waived its authority to issue certification for the project and they can now move forward.

Qatargas has supplied a liquefied natural gas commissioning cargo for India’s newest receiving terminal at Mundra in the northwest of Gujarat state.

With liquefied natural gas prices hitting historic Northern Hemisphere winter season lows in the Atlantic Basin and the Pacific Basin, it is likely in the year ahead that US exports in particular will be more price sensitive with the possibility of shut-ins along the Gulf Coast of Louisiana and Texas.

Indian liquefied natural gas imports surged for a ninth month in the current fiscal year as more volumes were imported at a lower cost from countries such as Qatar, the US, Australia and West African nations.