LNG

Australia’s left-wing government has rowed back from starting to ban hydrocarbons and putting the nation on a path to economic and energy suicide by on July 23 deciding to issue exploration and production licences for natural gas for the East, Southeast and West coast markets.

June 13 (LNGJ) - Beach Energy, the Australian exploration and production company and recent LNG player, has successfully connected the Enterprise natural gas field located just offshore Port Campbell in the state of Victoria to the Otway Gas Plant, with first sales gas delivered on June 12, 2024.

   Beach signed a Gas Sales Agreement (GSA) to supply utility company Origin Energy with gas from the Enterprise field until the end of 2026. “First gas from the Enterprise field is a significant milestone in Beach’s target of delivering a material increase in production and free cash flow over the next 12 months,” said Chief Executive Brett Woods, whose company also has a stake in the gas and LNG project onshore the Perth Basin in Western Australia.

New Zealand has reversed a ban on oil and gas exploration introduced by the previous government and will offer incentives for energy and mining company investments similar to those in other pro-fossil fuel energy nations.

April 24 (LNGJ) - Beach Energy, a partner of Japan’s Mitsui in the delayed Waitsia LNG project in the onshore Perth Basin of Western Australia, reported an increase in sales revenue from a year ago to A$392 million (US$254M) from A$353M in the 2023 quarter. “Our results were overshadowed by the delay to construction of the Waitsia Gas Plant and weather-related impacts to production,” said Beach’s Chief Executive Brett Wood. “The ongoing emergence of quality issues at Waitsia during the pre-commissioning phase is disappointing,” stated the CEO.

   Beach added that in the Perth Basin drilling campaign there were “pleasing results” including a gas discovery at Redback Deep. “Three gas discoveries and one gas development well from our operated campaign is an encouraging outcome which will provide valuable backfill volumes,” Wood said. Beach’s Enterprise well in the Otway Basin of south Australia is also on track to provide a valuable new gas supply source for the East Coast.

April 8 (LNGJ) - Beach Energy of Australia and Mitsui Exploration and Production of Japan, the developers of the onshore Perth Basin LNG export project in Western Australia, have pushed out schedules and increased costs because of quality issue during pre-commissioning of systems at the Waitsia Gas Plant.

   Beach said it would continue to utilise commercial arrangements to enable LNG cargo liftings prior to completion of the Waitsia Plant. The Adelaide-based company added that it had changed the contractor’s schedule for completion to early 2025 from mid-2024. “Total capital expenditure is A$600M-A$650M net to Beach, up from A$450M-A$500M,” said Beach. “Unavoidable processing costs based on the above first gas target will also be incurred,” it stated.

Beach Energy Ltd, the Australian company involved in the Waitsia LNG export project in the onshore Perth Basin of Western Australia and in other natural gas ventures in South Australia and New Zealand, has embarked on a strategic review involving job losses and an executive overhaul.

Beach Energy Ltd, the Australian company involved in the Waitsia LNG export project in the onshore Perth Basin of Western Australia and in other natural gas ventures in South Australia and New Zealand, posted a fiscal first-half loss as it awaited major project completions.

Jan 25 (LNGJ) - Beach Energy of Australia reported a 37 percent increase in quarterly sales revenue of A$544 million (US$358M), mainly due to the sale of the first Waitsia LNG project cargo from the onshore gas project in the Perth Basin of Western Australia and the one-off sale of a condensate shipment from the Waitsia venture with Mitsui of Japan. “Production and stored volumes from the Xyris Gas Plant, together with third-party surplus gas sourced via a swap arrangement, enabled processing and lifting of the first Waitsia LNG cargo at the North West Shelf plant (tolling) in December 2023,” said Beach.

   “Beach acquired Mitsui’s 50 percent share and sold the cargo to BP under the terms of the previously announced LNG sales and purchase agreement with BP. The cargo delivered revenue of A$96 million and net cash proceeds to Beach of A$49M after purchase of Mitsui’s share,” said Beach. “As we work toward commissioning of the Waitsia Gas Plant, we look forward to selling regular LNG cargoes into the global market,” said Chief Executive Bruce Clement.

Oct 18 (LNGJ) - Beach Energy of Australia has made a natural gas discovery at the Tarantula Deep 1 well in the onshore Perth Basin of Western Australia where an LNG project is being developed. The Tarantula Deep 1 reached total depth of 4,121 metres and is a second recent discovery by Beach.

   The company said the well would be suspended to allow for future development of the discovery. “Two gas discoveries from our first three operated exploration wells is a great start to the campaign,” said Interim Chief Executive Bruce Clement. “The results at Tarantula Deep 1 have improved our understanding of the Kingia reservoir extent in the Beharra Springs area and give us greater confidence in future development and near-field exploration,” Clement added.

May 17 (LNGJ) - Beach Energy, the company involved in the Waitsia gas development and LNG project in the Perth Basin of Western Australia, has also progressed with new gas wells connected to the Otway Gas Plant in the southern Australian state of Victoria.

   The company said it had connected two more gas wells in the offshore Otway Basin to the Otway Gas Plant and was now delivering additional gas into the Australian East Coast domestic gas market. “Four of the six Otway development wells that were drilled as part of the major drilling campaign are now connected,” Beach said. The company added that it was reviewing its preferred approach to connecting the final two wells, which will require either the repair or replacement of a flowline.