Cooper Basin gas
June 3 (LNGJ) - Australian exploration and production company Metgasco and its partners have reported success in the drilling of the Odin-2 appraisal well in the South Australian Cooper Basin. “The well drilled to appraise the eastern flank of the Odin gas field encountered gas pay in the Toolachee, Epsilon and Patchawarra formations, the primary targets in the well,” said Metgasco.
The Odin gas field is undergoing appraisal with gas produced being supplied to the Pelican Point Power joint venture of ENGIE Australia and Japan’s Mitsui under a long term contract running out in December 2026. “This successful drilling result at Odin-2 will enable the joint venture to progress with plans to rapidly tie-in the well to increase Odin gas production and associated revenue,” explained Metgasco Managing Director Ken Aitken.
Australian gas producers hit by heavy rain as some warn of future feed-gas shortages for Queensland LNG plants
Several Australian exploration and production companies have signalled an imminent East Coast natural gas supply crunch while the approach of the Southern Hemisphere winter in June has already brought heavy rains and disrupted gas operations amid warnings that there was not enough new feed-gas developments for the three LNG export plants in Queensland.
Australian LNG operator Santos silent on merger with Woodside but progresses with Barossa gas and Moomba CCS
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.
Australian LNG operator Santos reports fall in sales as Darwin shipments decline along with Asia-Pacific prices
Australian liquefied natural gas plant operator Santos reported a decline in LNG sales income as production and Asia-Pacific prices fell and the Darwin plant continued to suffer feed-gas issues.
LNG exporter Santos and Beach Energy move to increase domestic gas supply from the Cooper Basin
Santos, the Australia LNG export plant operator, and its joint venture partner, Beach Energy, said they had committed to proceed with work on their Cooper Basin assets to boost natural gas supply to the domestic market.
Santos said that the programme of works, which includes bringing a fifth drilling rig into the basin and optimising well connections, aims to deliver an additional 15 terajoules of gas per day, the equivalent of 14.2 million cubic feet per day, by the end of the year.
The Cooper Basin spans the state borders of northeast South Australia and southwest Queensland and the Cooper and Eromanga Basins contain Australia’s largest onshore oil and gas field development.
Santos operates the Gladstone LNG export plant in Queensland and the Darwin plant in the Northern Territory and its strategically important domestic assets in the Cooper Basin are linked to key infrastructure at Moomba in northeast South Australia
Santos-operated infrastructure enables the processing and transportation of natural gas and ethane around the East Coast of Australia, supported by substantial underground storage facilities suitable for natural gas, ethane and carbon dioxide.
Australian ministers in the new Labor government, which has been mostly hostile to the hydrocarbon industry for many years at federal and state level, are scheduled to meet in the coming week to discuss the domestic fuel crisis.
Supply shortfalls
This follows the Australian Energy Market Operator clearing the way for the triggering of the Gas Supply Guarantee Mechanism for the first time since the measure was introduced in 2017 to secure domestic gas for power generators amid potential shortfalls in southern states.
Increased Southern Hemisphere winter demand for energy, unscheduled outages at coal-fired power stations and energy shortages have led to rising natural gas and electricity prices across Australia.
Santos Chief Executive Kevin Gallagher said his Adelaide-based company continued to support Australian industry through the delivery of competitively-priced domestic gas.
“Santos will invest more than US$300 million (A$430 million) in the Cooper Basin this year developing and supplying critical fuels such as natural gas for our customers,” explained the CEO.
“This investment will deliver more gas to the domestic market, which is desperately needed,” he added.
“Recent domestic gas supply and price pressures have been caused by a spike in gas-fired power generation to back up renewables and to replace the 30 percent or more of coal-fired power generation that has been offline or not operating since early May,” said Gallagher.
Gallagher stated that the incremental investment in the Cooper Basin builds on the Santos “commitment” to meeting the fuel needs of customers.
Australian LNG producer Santos reports US$1.1Bln of quarterly LNG sales on high prices and PNG merger
Australian liquefied natural gas plant operator Santos, which has plant and project stakes in Queensland and in the Northern Territory as well as in Papua New Guinea, reported a jump in LNG sales revenues to US$1.116 billion from US$427 million in the same three months of 2021.
Papua New Guinea LNG expansion may now be at back of the line in global projects
Papua New Guinea’s liquefied natural gas expansion seems to have moved to the back of the line for ventures likely to make progress in the next two years as its hold-ups came before the most recent industry challenges led companies to defer multiple projects.
