LNG

Höegh LNG Partners, the US affiliate of Höegh LNG Holdings now partnered with the infrastructure unit of US investment bank Morgan Stanley, has given the bank seats on the board.

Santos, the Australian LNG plant operator and stakeholder, said it reached an agreement to align the company’s interests, under Santos operatorship across four exploration permits in the Bonaparte Basin offshore Northern Australia adjacent to large existing natural gas resources set to be developed for liquefaction and export.

Santos explained that its position in the Bonaparte Basin already includes an 11.5 percent interest in the Bayu-Undan gas-condensate field and in the onshore Darwin LNG plant, as well as having a 25 percent interest in the Barossa gas field.

A Barossa field project is currently in its front-end engineering and design stage and is the leading candidate to backfill the Darwin LNG export plant, operated by ConocoPhillips since 2006 in the Northern Territory and in which Santos is a shareholder.

Santos has signed an agreement with Beach Energy of Australia that will see the companies become 50-50 joint venture partners across four licences NT/P82, NT/P85, NT/P84 and WA-454-P. Santos will operate all four permits.

Santos added that the NT/P82 and NT/P85 permits are located immediately to the south of the Barossa project area, where Santos acquired the 4,347 square kilometres Bethany 3D seismic survey in 2018.

The other two permits are close to the Petrel, Tern and Frigate field complex in the Petrel sub-basin, where separate agreements with Europe-based Neptune Energy see Santos move to 100 percent operated interest in the Tern and Frigate fields and a 40.25 percent interest in the Petrel field, subject to final approvals.

“This alignment of equity and operatorship will allow for a more strategic approach to the next phase of exploration in the region,” said Santos Chief Executive Kevin Gallagher.

“It also reinforces Santos’ significant exploration and existing substantial resource position in offshore Northern Australia and is a good example of industry collaboration aimed at doing things smarter,” added Gallagher.

“We continue to chase material resource opportunities offshore Northern Australia to support our established infrastructure position at Darwin, with an eye to both export and domestic markets,” stated the CEO.

“The next step for these permits is to evaluate new and existing seismic data to build inventory and define potential targets for drilling within the next few years,” said Gallagher.

The CEO added that permits NT/P82 and NT/P85, which are located immediately south of our Barossa project, will be a key focus for this work.

The Barossa gas field development would extend the operating life of the Darwin LNG plant for more than 20 years.

The Darwin plant exports around 3.5 million tonnes per annum of LNG from a single liquefaction Train to Japanese utilities Tokyo Electric Power Co. and Tokyo Gas.

French energy company Engie has inaugurated and commissioned the first floating LNG import facility in Turkey, located close to the port of Izmir, at a ceremony attended by Turkish President Recep Tayyip Erdogan and other officials.

With a shorter pre-FID and construction schedule, lower capital expenditure and flexibility to move it around, barge-type FLNG projects with a capacity 1 to 1.5 mtpa of having some significant advantages over large floating or land-based liquefaction projects, according to Øivin Iversen, CEO of Höegh FLNG.