LNG

Santos Ltd, the Australian operator of two liquefied natural gas export plants and a main shareholder in Papua New Guinea LNG assets, has signed a long-term supply deal with Hokkaido Gas Co., the Japanese utility.

Santos has become the latest Australian energy company along with Woodside Energy to have multi-billion dollar offshore natural gas pipeline projects blocked by the Federal Court of Australia for reasons of “underwater cultural heritage” even as in the case of Santos an independent expert anthropologist concluded that no such underwater cultural heritage places existed in the whole area.

One of Australia’s leading chief executives, Kevin Gallagher of liquefied natural gas and energy company Santos, has been given permission to undertake flexible working arrangements.

Australian LNG exports reached a new record of 81.4 million tonnes in 2022 and the export revenue increased by 86 percent year-on-year to A$92.8 billion (US$63.4Bln) in the 12 months to the end of December because of much higher prices and Australia appeared to tie in volume terms as World No. 1 exporter along with Qatar and the US.

The natural gas drilling programme in the Timor Sea to increase available feed gas for the Australian Darwin LNG export plant from the Bayu-Undan gas field joint venture has produced better than expected results for the six energy company shareholders and the tiny Asia-Pacific state of Timor-Este.

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

April 30 (LNGJ) – Australian LNG exporter Santos has completed the sell-down of a 25 percent interest in the Bayu-Undan gas field and Darwin LNG to South Korea’s SK E&S, which is also a partner in the Barossa offshore gas project. “The sell-down resulted in net funds to Santos of US$186 million at completion, being the sale price of US$390m less the cashflows from the 25 percent interests ,” said Santos. “The sell-down to SK E&S is in line with our strategy of disciplined growth while maintaining a strong balance sheet by managing equity levels in our growth projects,” said Santos Chief Executive Kevin Gallagher.

Australian LNG operator Santos has completed the acquisition of the northern Australia and Timor-Leste assets of US major ConocoPhillips for a reduced purchase price of US$1.265 billion because of the oil price slump.

Australia energy company Santos, a shareholder in three LNG export plants, reported record annual free cash flow and a rise in profits even amid lower prices, offset by a slowdown in marketing in Asia because of coronavirus.

Australian and Japanese energy companies along with US major ConocoPhillips have signed accords linked to legislation implemented by Australia for a treaty with the tiny southeast Asian nation of Timor-Leste to establish their maritime boundaries in the Timor Sea off northwest Australia.