CSG protest hailed a success - ABC News (Australian Broadcasting Corporation):
"It may be legal, but only with the laws as they are now, and those laws should change to reflect the wishes of the community and that is, they have said no to coal seam gas," he said.
"This industry does not have a social licence.
"It has not any support in the community and the people are putting their bodies on the line defending their land and water and the people of the Northern Rivers should be congratulated for doing that by people across NSW and Australia."
Photo Damian Kelly
ACTION OF THE DAY
A MAJOR national bank has been forced to remove more than 100 misleading out of order signs from its ATMs after being targeted by anti-coal activists.
A MAJOR national bank has been forced to remove more than 100 misleading out of order signs from its ATMs after being targeted by anti-coal activists.
A score of ANZ Banking Group machines sprawled across six capital cities were plastered with "out of order" signs on Sunday after campaigners launched their latest bid to draw attention to the bank's funding of the coal industry.
Posts
Congratulations to all of them for their fantastic effort in appalling temperatures.
ReplyDelete"This industry does not have a social licence"
From BCNG Facebook.
ReplyDeletehttp://www.platts.com/RSSFeedDetailedNews/RSSFeed/NaturalGas/8042713
Woodside's Browse LNG project may enjoy lower costs post 2014: Bernstein
Sydney (Platts)--8Jan2013/511 am EST/1011 GMT
"While costs remain a potential barrier to commercial development, there are alternatives (floating LNG) and cost inflation for LNG projects is likely to peak this year which could mean lower costs for development post-2014," Bernstein said. "We do not believe that PetroChina and MIMI would have paid what they did if the project was unlikely to have a commercial solution."
Woodside has been planning to develop the Browse joint venture's offshore gas resources to supply a 12 million mt/year LNG project, to be located at James Price Point in Western Australia's Kimberley region. The partners' resource totals 15.5 Tcf of gas and 417 million barrels of condensate, held in the offshore Torosa, Calliance and Brecknock fields.
Woodside is currently evaluating tender bids and undertaking an assurance process to determine costs and economics for the project, with a view to making a final investment decision in the first half of 2013. Bernstein is assuming the project will cost $46 billion to develop.
......
$46 BILLION FOR 12 MILLION TONNES PER ANNUM ????
NO WAY !!!!
SOMEWHERE BETWEEN $60 AND $70 BILLION FOR THAT AMOUNT OF LNG ????
FINANCIAL SUICIDE.
THEY WOULD ALL BE SACKED.
Wednesday, 09 January 2013
DeleteUS LNG exports could hasten the transition away from oil price indexation of supply contracts and in regions such as Asia cargo prices could drop sharply over the next few years because of the linkage of LNG to the Henry Hub benchmark, according to a new report from consultants Deloitte.
Anticipated US natural gas exports are expected to provide economic benefits to gas importing countries but probably will not trigger a significant rise in US gas prices, said a report released by Deloitte’s Center for Energy Solutions.
Delete“This shows why the government doesn’t need to put a lid on projects. This says you don’t need to artificially constrain this,” Peter J. Robertson, independent senior advisor to the oil and gas group of Deloitte LLP, said during a Jan. 8 media briefing in Houston on the report, “Exporting the American Renaissance, Global impacts of LNG exports from the US.”
Robertson said exports likely will strengthen trading relationships between the US and LNG-importing nations, especially members of the Organization for Economic Cooperation and Development.
“Prices are projected to decrease fairly significantly in regions importing US LNG, but only marginally increase in the US,” the study said.
Tom Choi, Deloitte MarketPoint natural gas market leader, said the projected increase of average US prices during 2016-30 is about 15¢/MMbtu.
“We don’t see a global gas price evolving because of high transportation costs,” Choi said.
The report also discussed pricing strategies, saying some exporters will continue to price gas supplies based on the oil price index. But oil-based pricing is likely to eventually erode, Choi said.
He believes gas markets will transition toward a more competitive price regime, in part because US LNG sold to Asia-Pacific buyers is not indexed to oil prices.
US LNG is widely expected to be indexed to Henry Hub gas prices rather than to crude oil, he said.
ALSO IN COMMENTS FROM ABOVE :
ReplyDeletehttp://interfaxenergy.com/natural-gas-news-analysis/middle-east/the-path-to-east-med-lng/
Gerry Peereboom is the director of LNG development for Noble Energy, a United States company with assets in the US, East Mediterranean, West Africa, the North Sea and China. Interfax spoke to him about the company’s plans for the highly prospective Leviathan and Tamar gas fields offshore Israel.
"Interfax: Permitting in Israel is slow and environmental lobbyists have protested against building an LNG plant on the country’s small and scenic coastline. Would you need government guarantees that any onshore project will not be delayed by drawn-out permitting?
GP: We certainly would. With big, capital-intensive projects like this you need government support, and I’m quite optimistic that we will get it. I think there are areas in Israel that are already industrial and that lend themselves to building a plant. I fully recognise that many parts of the coastline are off-limits because they’re being reserved for tourism, and that’s understandable."
http://energy.gov.il/Subjects/NG/Documents/%D7%A2%D7%9E%D7%93%D7%95%D7%AA/WM.pdf
ReplyDeletePerspectives on Gas Exports from Israel
December 2011 Page 14 of 17
Firstly, the supply project needs to have all the required gas committed to the project (and potentially
more than enough) for 15-20 years. If there is a question that the gas might not be available to the buyer
under the contractual agreement then this will present a significant concern
Secondly, the project needs to be commercially robust under a variety of economic conditions. If the project is
marginal then there is a danger that the developers may not deliver on their commitments if the project
economics become challenged. In this respect, buyers will likely feel more comfortable buying LNG from a
larger two train facility which potentially has better economics and provides a degree of flexibility in the event of
a disruption at one train
Thirdly, the project developers must be perceived to be capable of delivering the project. The Asian buyers
place a great deal of store in their relationships with the major LNG players and as such are more comfortable if
those players are backing a project. While new companies have been able to develop relationships with some
of the buyers there is always a preference for the “tried and tested” relationships
And fourthly, the supplier will be perceived favourably if he can provide the buyer with offtake flexibility e.g.
destination flexibility, delivery timing, interim supplies, etc. In markets such as Japan and Korea, the buyers
have increasing levels of uncertainty around future requirements for LNG and as such need future contracts to
reflect this uncertainty with flexibility provisions
While there are other factors which concern a potential buyer (e.g. political risk of supply country, technical challenges,
etc.), the four main qualitative elements defined are balanced with pricing to secure new long term contracts. If a supplier
can offer all of the above then he is likely to be able to secure premium pricing, if not then it is likely he will face pressure
for price reductions (if he is considered by the buyer at all).
From an Israeli perspective, the securing of premium pricing and thus the maximisation of project value will involve
presenting the most credible project possible for the potential buyers. That means offering a project which can address
their concerns over security of supply as well as their need for ongoing flexibility. While the export of gas can help Israel
realise the full potential of its resources, it should be noted that the global gas (and in particular LNG) market is still highly
competitive and securing long term export contracts is neither simple nor easy. Based on the expected global demand
for LNG and possible supplies it is clear that there is indeed a window of opportunity for NEW SUPPLIERS : PRIOR TO 2017/18
the level of competition is relatively low. However FROM 2018 ONWARDS the number of potential suppliers increases
significantly and as such the competitive dynamic for selling long term volumes increases
...
SO WOODSIDE ARE FACED WITH THE SAME TIMELINES AT LEVIATHAN AS WITH JPP.
SOME EXCERPTS FROM A NUMBER OF SOURCES :
ReplyDelete...
Phase Two: LNG Processing in Cyprus
To export an additional 700 Bcf/year, Israel’s most viable option is LNG (liquefied natural gas). GTL (gas-to-liquid fuel using Fischer-Tropsch technologies) is a possibility, but LNG is the less risky method for monetizing such large amounts of gas. An LNG plant consisting of two 7 million MT/year trains will produce 700 Bcf/year of gas, at a capital cost of approximately $12 to $15 billion. Included in the project would be the construction of an undersea pipeline from Leviathan to the liquefaction plant.
Israel can build its liquefaction plant in Israel. But the better option is to construct the marine port and liquefaction plant in Cyprus, which is almost as close as the Israeli coast to the Leviathan field. An advantage of Cyprus is that it is a full member of the European Union benefitting from preferential terms for importing into other EU countries, and the political situation in the country supports large-scale, long-term investments.
...
Meanwhile, the island Republic of Cyprus, 300 miles (480 kilometers) from Israel's coastline in the Mediterranean, has its own large natural gas discovery. With Noble Energy, an oil company based in Houston, Texas, a major stakeholder in both the Israel and Cyprus finds, the two nations are in talks on how to coordinate development and potential export. But Turkey, which has de facto control of the northern part of Cyprus and doesn't recognize the Cypriot government, has begun energy exploration too.
....Zomer contends it will be necessary for Israel to build its own LNG facility, the cost of which he said will be driven by the market. To give just one example of how pricey that can be, one company aiming to build a new LNG export terminal on the U.S. Gulf Coast estimates its costs for two production trains will be $4.5 to $5 billion.
...
The Woodside deal was seen a blow to the ambitions of Russia's Gazprom, which was also understood to have bid for the stake, although the company's London-based marketing arm holds a preliminary agreement with the Noble-led Tamar consortium to lift 2.5mtpa from a planned 3mtpa floating liquefaction project, which will be fed by the nearby offshore Tamar and Dalit fields.
However, an industry source familiar with the Leviathan project said that Noble had been concerned that Gazprom might have attempted to shift the LNG marketing strategy away from Europe in an effort to protect its existing pipeline sales to the continent.
The Leviathan partners have yet to be given the formal green light from the Israeli government to export from the field, although a committee headed by Israel's Energy and Water Ministry director, general Shaul Tsemach, has recommended allowing exports only after long-term domestic needs are satisfied.
The consortium have launched a pre-front-end engineering and design (FEED) study on a prospective LNG export project, and are still studying number of potential development options. These include an LNG export plant on Israel's Mediterranean coast near to Ashkelon or at the Red Sea port of Eilat, which would be closer to Asian markets, and would have the advantage of being able to access these markets without passing through the Suez Canal.
Other potential options include developing a joint LNG export plant at the Cypriot port of Vassilikos, which could be fed by Leviathan, as well as the Aphrodite field (offshore Cyprus), although the Tsemach committee has indicated that it would prefer any LNG export facility to be located in Israel.
...
CONT...
ReplyDeleteTuesday, December 20, 2011
Bethel Finance news:
Israel has offered to export gas to India. During his visit to India last week, Minister of Finance Yuval Steinitz proposed to the Indian government that Israel should export natural gas to India, the Times of India reports. The two sides have committed to examine this possibility, and negotiations will continue during the reciprocal visit by the Indian External Affairs Minister SM Krishna in Israel in January.
Qatar and Oman are India's main gas suppliers. Iran, which might have been one of India's main LNG suppliers, cancelled a huge deal with India after it had been signed, following India's vote against its nuclear program in the IAEA. The idea of constructing a gas pipeline from Iran to India via Pakistan too has run aground on security considerations.
...
Small wonder that Woodside is taking its time in making a final investment decision on building a new LNG receiving terminal at James Price Point, north of Broome on the West Australian coast, which would take gas from its next proposed offshore venture, Browse.
As Woodside chief executive Peter Coleman told The Australian's Global Leaders Insight series on Sky Business last week, Woodside and its joint venture partners, including Shell, Mitsui and Mitsubishi, have already spent $1bn working up the project to date including $100 million in environmental studies specifically on the James Price Point terminal.
Shell wants to drop the onshore terminal idea and go with a Waterworld-style offshore terminal, while Coleman is keeping his options open.
In Hollywood, Kevin Costner's Waterworld, which was made in 1995, had a reputation for being the most expensive film ever made at the time, renowned for its horrendous cost blowouts because of its location on an offshore floating platform.
But in the Browse case, the high cost of having an offshore floating receiving terminal is being seen as preferable, by Shell at least, than the cost of having an onshore terminal in Western Australia.
As Coleman deals with the rising cost of doing business in Australia he is also aware of the increasing sources of competitive gas coming on stream globally.
...
It seems that Australia’s Woodside Petroleum has done a pretty good deal in picking up a 30% stake in the massive Leviathan gas field off Israel.
The 17 Tcf of gas in Leviathan has been widely dubbed a “truly world-class” prize, tarnished only by the potential security and political risks associated with developing a major infrastructure project in Israel.
Leviathan is a great resource and all the global gas industry heavyweights were keenly interested, according to a source at one of those companies. But at the end of the day the majors walked away, mindful of their existing massive investments in the geopolitically sensitive Middle East.
...
Woodside is paying $0.24/Mcf ($1.44/barrel of oil equivalent) for its stake, assuming an LNG project goes ahead.
NOTE : PETRO CHINA AND MIMI PAID $5 - $6 BARREL OF OIL EQUIVALENT FOR THEIR BROWSE STAKES.
...
The deal on Leviathan is part of a new strategy put in place by Coleman, under which Woodside is seeking to leverage expertise gained operating its core Australian businesses, including the North West Shelf and Pluto LNG projects, in the global marketplace. The company has since farmed into two blocks offshore Myanmar.
Woodside took its first step into the Mediterranean earlier this year, when it announced it had bid for deepwater gas acreage off Cyprus as part of a consortium led by Israel’s Delek. That bidding process is still underway but could result in it starting to build a significant business in the region.
NOTE : WOODSIDE ARE SNIFFING (not like Troy - we hope) AROUND THE WEST COAST OF CANADA WHERE COSTS ARE MUCH LOWER THAN AUSTRALIA'S,AND ABOUT THE SAME DISTANCE FROM MAJOR ASIAN MARKETS.
...
CONT...
ReplyDeleteLeviathan export terminal
estimated to cost $13 billion: analyst
Jerusalem—Building an LNG export terminal and related
facilities for the huge Leviathan field offshore Israel could cost
an estimated $13 billion, Israel’s Psagot Investment House sad
in a report issued Wednesday.
The report, issued by energy sector analyst Noam Pinko, was
skeptical about the possibility of building an LNG plant on
Israeli territory, citing strong opposition from environmental
lobbies and local residents along the Mediterranean coastal
region of Israel.
That would leave open the possibility of an offshore
terminal or exporting via Cyprus, which has already approved
building an LNG terminal at Vasilikos, along its southern
Mediterranean coast. Pinko estimated the gas reserves at
Leviathan at 500 billion cubic meters (17.665 Tcf).
...
SUNRISE AGREEMENT EXPIRES IN ABOUT 6 WEEKS.
LOTTA LOTTA WORK.
JPP TOO EXPENSIVE,TOO DIFICULT,WILL TAKE UP TOO MUCH SPACE AND TIME.
GO THE FLNG - AND LET SHELL SHOULDER SOME.