LNG

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.

Beach Energy increased sales in the fiscal first half and was on scheduled to have first natural gas from an LNG feed-gas project in Western Australia and first gas from an East Coast venture while the company painted a gloomy picture of the energy business in New Zealand.

Beach Energy of Australia said an agreement had been reached with Webuild SpA, the Italian industrial group, for the completion of the Waitsia Stage 2 project for LNG feed gas from the onshore Perth Basin subject to finalisation of the bankruptcy administration of previous engineers Clough Limited.

Warrego Energy Ltd, the Australian oil and gas explorer with natural gas assets in the onshore Perth Basin, said its board's recommendation of a takeover by a subsidiary of Hancock Prospecting Ltd. was no longer unanimous following a revised proposal from Australia’s Strike Energy amid an intense Australian company bid battle.

Clough, the Australian energy engineering company, said it achieved its first major concrete pour and first structural steel erection on site at the Waitsia 2 gas project being constructed for LNG production in the Perth Basin onshore Western Australia.

Clough won the engineering, procurement and construction work for the field near the town of Dongara, located about 350 kilometres (217 miles) north of the city of Perth and 65km south of the town of Geraldton.

Beach Energy of Australia and a subsidiary of Japan’s Mitsui and Co. each own 50 percent of the venture and Mitsui is the operator of the Waitsia field.

Beach and Mitsui have also finalized and signed key commercial agreements with shareholders of the North West Shelf LNG plant to enable LNG exports, with the State of Western Australia and the pipeline and project company, Australian Gas Infrastructure Group (AGIG).

Clough said the concrete pour at the site was a 14 cubic metres condensate storage slab and bund, which was followed later that same day by the first steel erection.

“This will form the main spine of the facility, a central 200-metre pipe track weighing over 100 tonnes,” Clough explained.

The start of full construction activities came a week after the first night of occupation at the recently completed temporary construction village.

“With bulk earthworks and piling now nearing completion, the project ramps up and hits its next phase of self-perform structural, mechanical and piping construction work,” said Clough.

The Waitsia gas field is ranked one of the largest gas fields ever discovered onshore in Australia and it is forecast to bring significant economic benefits to the Mid-West region from both construction and operating phases.

The Waitsia Stage 2 project includes a new gas processing plant with a 20-year life-cycle that will convey gas via the nearby Dampier to Bunbury Natural Gas Pipeline.

The Beach-Mitsui venture and Woodside Petroleum subsidiary, Woodside Burrup Pty Ltd, with gas from the Pluto gas fields, have become the inaugural third parties to sign binding commercial access agreements with the North West Shelf LNG partners.

The six NWS LNG partners are Australia’s Woodside and BHP, UK major BP, Chevron Corp., Royal Dutch Shell and a Japanese partnership comprising Mitsubishi Corp. and Waitsia gas shareholder Mitsui.

The Gas Processing Agreement and related agreements signed with the NWS LNG will enable up to 1.5 million tonnes of LNG per annum to be tolled and processed into LNG through the NWS facilities in Karratha between the second half of 2023 and the end of 2028.

Beach and Mitsui will each market their respective LNG equity interests independently of the NWS LNG plant partners.

Mitsui is already a long-standing LNG exporter while Beach will become an LNG player for the first time in the company’s 60-year history.

July 21 (LNGJ) - Beach Energy, the owner with Japanese trading house Mitsui of the Waitsia natural gas field in the onshore Perth Basin of Western Australia, said development was on schedule along with marketing of future LNG volumes.

   “In the Perth Basin, along with our joint venture participant Mitsui E&P Australia, we are nearing commencement of construction of the gas facility for the Waitsia Gas Project Stage II, with contractor Clough on track to turn the first sod in the first half of 2022,” said Beach Energy Chief Executive Matt Kay in the quarterly activities report. Beach said it was continuing the marketing of its 50 percent share of the 7.5 million tonnes per annum of LNG expected from the Waitsia field and to be processed at the Woodside Petroleum-operated North West Shelf liquefaction plant.

The Western Australia emerging natural gas producer Warrego Energy has guaranteed its way forward by signing a long-term supply agreement with a foundation customer.

Warrego said it signed its deal with Alcoa of Australia, operator of one of the world's largest integrated bauxite mining operation for its West Erregulla gas field in the onshore Perth Basin.

The deal covers 155 petajoules of gas, with supply to begin in January 2024. The length of the agreement has not been disclosed.

Additionally, the binding gas sales deal is subject to a final investment decision on West Erregulla, which is expected in the first half of 2021.

Nevertheless, Warrego said it intended to expand its gas sales portfolio and is continuing to negotiate with other potential customers.

Alcoa operates three alumina refineries, the Kwinana, Pinjarra and Wagerup plants in Western Australia, along with two bauxite mines.

Warrego Group Chief Executive Dennis Donald said the company was delighted with the agreement to supply Western Australia’s largest and most experienced gas buyer.

“Securing such a large-scale and long-term agreement with a top-tier customer like Alcoa is testament to the quality of the West Erregulla gas field and the commercialisation strategy adopted by Warrego and will send a positive signal to other potential gas buyers,” Donald explained.

Donald added that Warrego was well advanced in progressing gas processing options, which include third-party processing and shared infrastructure.

At present, the company is drilling its WE-3 well in the northern area of the West Erregulla field.

At least one further well (WE-4) is scheduled to be drilled in the next 12 months, along with the possibility of a fifth one (WE-5).

Warrego noted that any increase in West Erregulla’s certified resources will be welcomed by the market, and a success at WE-3 could add considerably to the current 513 billion standard cubic feet of gross contingent resources

Warrego has a 50-50 joint venture partner in Strike Energy and recently announced the spudding of its second well in the West Erregulla concession.

The field forms part of a triangle between Mitsui’s & Co.’s Waitsia wells and Beach Energy’s Beharra Springs Deep, which has been claimed to have the potential to hold a world-class hydrocarbon deposit.

West Erregulla-2 was spudded in June 2019 and drilled to a total depth of 5,100 metres, the deepest well drilled in onshore Australia, and flow tests achieved a world-class maximum flow rate of 69 million standard cubic feet of gas per day.

The appraisal drilling campaign was one of a string of positive announcements for Warrego, which was formed in late 2007 by Scottish oil and gas workers Dennis Donald and Duncan MacNiven.

“The major discoveries of the West Erregulla-2 well helped consolidate our position as a key player in the Perth Basin and has laid the foundation for exploration and appraisal success through our current campaign,” stated Donald.