Japan’s JERA has received its first LNG cargo from Australia’s Barossa project, marking the start of contracted deliveries. Barossa has a nameplate capacity of about 3.4 mtpa, and JERA is entitled to lift roughly 425,000 tpy of LNG, reflecting its equity participation.
Australia’s second-largest oil and gas producer, Santos, has underscored the “strategic advantage” of LNG from Down Under as the fallout from Hormuz shipping disruptions could last for years. Santos – and its rival Woodside – are both stepping up “safe” LNG supplies to Asian offtakers.
Japan’s leading utility JERA has shipped the first LNG cargo from Australia’s Barossa gas project, with processed loaded from the revamped Darwin LNG export plant in the Northern Territory. JERA holds a 12.5 percent stake in the project and is eligible to offtake approximately 425,000 tonnes of LNG annually, in line with its equity share.
Santos is ready to ship the first cargo from its $6.1 billion Barossa gas project in the next few days. Currently loaded at Darwin LNG, the cargo will be delivered to the Sakai terminal in Japan.
First gas received at Santos’ BW Opal floating production storage and offloading (FPSO) vessel puts the Australian major on track with the Darwin LNG project, CEO Kevin Gallagher said. Situated off Darwin, Northern Territories, the FSPO receives gas from the Barossa gas wells.
Australian LNG operator Santos reported that stronger prices and higher sales volumes delivered a 34 percent increase in quarterly sales revenue to a record US$1.5 billion and even better was expected in 2022 with completed Oil Search merger.
Australian LNG plant operator Santos and Italian oil and gas company Eni have signed an accord to cooperate on liquefied natural gas and other opportunities in northern Australia and in and around the former Portuguese colony of East Timor, now known as Timor-Leste.
“The areas of cooperation include assessing the synergies of sharing possible infrastructures associated with gas field developments around Barossa and Evans Shoal, the pipeline to Darwin and onshore associated gas processing leading to LNG expansion developments,” said a joint statement.
Other areas of Eni-Santos cooperation include the possible development of the Petrel and Tern gas fields through Blacktip-Yelcherr gas plant facilities.
“As I said when I was in Darwin to announce our FID decision for Barossa, we have approval for two more Trains at Darwin LNG and we are open to third-party gas opportunities,” said Santos Chief Executive Kevin Gallagher.
Their memorandum of understanding (MOU) includes investigating options to re-purpose the Bayu-Undan gas field facilities in the Timor Sea to extend the life of the project, including a carbon-capture and storage venture, subject to the agreement of the Timor-Leste government.
Gallagher said the MOU built on the momentum for the development plans for northern Australia following the final investment decision taken by Santos on the Barossa gas and condensate project to give a life extension to the Darwin LNG for the next 20 years.
Santos now operates the Darwin plant, as well as the Gladstone LNG facility in Queensland, after acquiring the North Australian assets of US major ConocoPhillips.
“Eni are already a highly valued partner in the Bayu-Undan project and this MOU strengthens our collaboration and cooperation,” added Gallagher.
“CCS opportunities at Bayu-Undan are extremely exciting for Santos and Eni and today we are saying, we would like to be open for business to take your CO2,” declared the Santos CEO.
“In 2019 the London Convention was amended to allow CO2 to be transported across jurisdictions to enable the establishment of storage hubs,” Gallagher explained.
“The CCS project at Bayu-Undan could provide a new job-creating and revenue-generating industry for Timor-Leste with quality carbon credits increasing in both demand and value internationally,” added the statement.
The CCS facility could capture and store CO2 from industries in Australia’s Northern Territory and help it meet its net-zero emissions by the 2050 target date.
“That’s good for the environment, good for local jobs, good for local investment and good for regional development,” stated Gallagher
Oct 30 (LNGJ) - MODEC Inc. of Japan said it signed a contract with ConocoPhillips (Australia) to provide a Floating Production Storage and Offloading (FPSO) vessel for the Barossa field, offshore northwest Australia that will supply the Darwin LNG plant. The Barossa FPSO is intended to produce gas and condensate from subsea wells supply Darwin via a gas pipeline.
The Barossa FPSO is MODEC's largest Gas FPSO to date and will be able to export over 600 million standard cubic feet of gas per day as well as store up to 650,000 barrels of condensate for export. “It has been designed to withstand a 100-year cyclone event at a water depth of 260 metres and will be located some 300 kilometers northwest of Darwin,” said the company. The FPSO hull will be constructed in China at Dalian Shipbuilding Industry Co. (DSIC) in the northeast Liaoning Province.