Friday, March 2, 2012

EnergyNewsBulletin.net + How the wheels fall off

EnergyNewsBulletin.net + How the wheels fall off
AS WOODSIDE grapples with securing third-party gas for a Pluto expansion and negotiating a deal with the Timorese government for the Sunrise project, changing supply side dynamics may seal the fate of its controversial Browse project.

Conceptual James Price Point development layout Courtesy of Woodside

With about $180 billion worth of LNG projects currently under construction or committed to, Australia is likely to overtake Qatar as the leading LNG exporter by 2017.

While the Browse project, despite serious environmental concerns, has the blessings of the Western Australian government, and is seen as potentially one of the last greenfield LNG developments, there is increasing concern that the project might become victim to the success of other LNG projects that have driven up costs.

5 comments:

  1. "How the wheels fall off" is exactly right!

    Woodside must be kicking themselves,here they are stuck with 3 of the most expensive projects ever,and meanwhile overseas the rush is on.

    The East Africa bonanza,and the massive Chinese shale reserves,both look highly profitable to say the least.

    And just to rub salt into their wounds some very lucky Australian juniors,and a couple of bigger local players are in the box seat on both.

    Dart Energy,

    http://www.platts.com/RSSFeedDetailedNews/RSSFeed/ElectricPower/7311734

    Pancontinental & co,

    http://investorshub.advfn.com/boards/read_msg.aspx?message_id=72780874

    "Dart Energy was spun off in July 2010 from Australian coalseam gas producer Arrow Energy, which was acquired by Shell and PetroChina. Dart was formed to hold Arrow's 90% stake in its unconventional gas assets in China, India, Vietnam and Indonesia, along with several growth prospects in Australia."

    "WHL is seeking to lock in one or more partners in the next few months to fund a drilling campaign, and can only be helped in that objective by the good news streaming from exploration efforts at its near-neighbours.

    The exciting gas discoveries off Africa’s east coast are seen as a threat to Australia’s LNG markets in Asia, but it is welcome news for a number of Australian juniors and even one of our own LNG leaders, Origin Energy."

    Given the sorry state of affairs with Pluto,Browse and Sunrise,Woodside must be asking themselves,"How did it come to this?"

    The answer of course is in its corrupt dealings with State and Federal governments which have blinded it to other,more profitable opportunities.

    For Woodside it is like paying a $100 for a few crumbs on a plate,while across the road everyone else is pigging out on a feast - $10 all you can eat!

    Under these circumstances talk of the very expensive,barely profitable and risky Browse,must be about as popular as a plague of boils!

    ReplyDelete
  2. 3 lemons in a basket for Woodside.
    To find a lower Natural Gas price in the US at the moment you have to go back over 10 years to Feb 2002.
    The majors have cut back on production to try and steady the price,it hasn't worked.
    They are left with 2 options,keep producing and make a small loss or stop producing and make a big loss.
    The price will continue to fall but may pick up slightly if the US has a scorcher of a summer.
    Prices are expected to remain depressed for several years as new discoveries are made.

    ReplyDelete
  3. The Facebook pages on the Kimberley appear to have gone into ghost ship mode,no one at the helm.
    Last night Pat Dodson was in Perth making a speech on changes to the constitution.He said the JPP gas hub was unlikely to proceed since the CA was found to be flawed.Very embarassing for the gov and company.It could be all too hard now for them,and the economics were so shakey.
    Bill Marmion has decided fraccing does NOT require any environmental approvals and companies can frac away to their hearts content,this means Buru.Perth and Carnarvon basins are go too.
    Any conection between the two?Pat and Buru seemed pretty cosy awhile back.

    ReplyDelete
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