Archive for the ‘GAS BOILERS TURBINES’ Category

50 years of Liquid Natural Gas [infographic]

Tuesday, April 7th, 2015

liquid natural gas storage tanks image

As we hit the milestone of 50 years since the first LNG export, Wood Mackenzie examine the current state, and future of the LNG industry.

This future looks particularly bright for the Australian market, with the country this year celebrating its 20th anniversay of LNG exporting, and set to become the 2nd largest LNG export in the world, only behind the US, eventually leaping into position as the world’s number one exporter by 2017.

liquid natural gas over 50 yrs infographic image


Henry Sapiecha


Friday, January 13th, 2012

North Australia to have a liquiefied natural gas plant built by Japan

Japan’s largest energy explorer has today committed to build the $34 billion Ichthys liquefied natural gas project in Australia, which would become one of the world’s biggest LNG facilities with an estimated 40-year life of processing gas from WA’s Browse Basin.

Inpex chair Naoki Kuroda announced the much anticipated final investment decision in Darwin, the site elected to build the project’s onshore gas processing facility after early plans to build the hub north of Broome.

The investment would be the single-largest in Australia from the Asian nation and create an initial 3000 jobs in Darwin with 1000 more off the WA coast. Once the project is fully operational it would shrink to 700 permanent staff.

The project would provide long term stable supply of energy to Japan after the Dai-Ichi nuclear station in Fukushima was crippled from an earthquake and tsunami in March.

Ichthys is among $200 billion worth of LNG developments planned, or under construction, in Australia as the country moves toward the top spot in the global rankings of LNG suppliers.

Australia, with projects led by Chevron, Royal Dutch Shell, Woodside, will “rival” Qatar as the world’s biggest exporter by 2016, Energy Minister Martin Ferguson has said.

“Ichthys will contribute significantly to the growth of the Australian economy while strengthening friendly ties between Japan and Australia,” Mr Kurodo said.

He said construction on the project was expected to begin at the Blaydin Point site in Darwin within the next month.

Mr Karudo said tenders for the project would have to demonstrate how they would maximise use of Australian products and services to be successful.

Sourced & published by Henry  Sapiecha


Monday, January 17th, 2011

Santos Commits to $16 Billion

Queensland LNG Project

January 13, 2011, 12:49 AM EST

More From Businessweek

Jan. 13 (Bloomberg) — Santos Ltd., Australia’s third- largest oil producer, has committed to building a $16 billion liquefied natural gas project, helping the Queensland state economy recover from “devastating” floods.

Santos and partners Total SA, Petroliam Nasional Bhd. and Korea Gas Corp. will develop a venture at Gladstone that’s expected to produce 7.8 million metric tons of LNG a year and create 5,000 construction jobs, the Adelaide-based company said in a statement today. The site is about 550 kilometers (340 miles) north of the state capital Brisbane, which is experiencing its worst floods since 1974.

“These floods will have a lasting personal, environmental and economic impact on Queensland,” Santos Chief Executive Officer David Knox said on a call with reporters. “This project will be helping Queensland to get back on its feet.”

The venture is one of four on the central Queensland coast planning to liquefy gas extracted from coal deposits for shipment to Asian clients. BG Group Plc, the U.K.’s third- largest gas producer, said on Oct. 31 that it would build the Queensland Curtis LNG development at a cost of $15 billion.

“It’s all down to project execution now,” said Benjamin Wilson, an analyst at JPMorgan Chase & Co. in Sydney. Because of competition for labor, it’s important to approve engineering and construction contracts “as quickly as possible.”

Costs, Jobs

Santos rose after the announcement, advancing 2.2 percent to A$13.45 at the 4:10 p.m. close in Sydney, the most in more than three weeks, compared with a gain of 1.5 percent for the benchmark S&P/ASX 200 Index.

The oil and gas explorer has said it is signing contracts for the development of the project at fixed prices to reduce the risk that labor shortages will drive costs higher. Santos has awarded work to Bechtel Corp., Saipem SpA and Fluor Corp.

BG has said its venture is expected to generate 5,000 construction jobs during the next four years. BG’s project will have two processing units with a combined capacity of 8.5 million tons of LNG a year.

Santos anticipates 1,500 jobs from the project in the first half of this year and that construction will gradually “ramp up” before peaking in 2013, Knox said. The Australian company will own 30 percent of the project, while Kuala Lumpur-based Petroliam Nasional, or Petronas, and Paris-based Total will each own 27.5 percent. Korea Gas will have 15 percent.

Rebuilding After Floods

“Proceeding now with projects like this will be a tremendous boost to the Queensland economy as we recover from the devastating impact of the floods,” state Premier Anna Bligh said in the Santos statement.

The venture aims to begin exports in 2015, generating an average of $6 billion in annual revenue and has combined supply agreements worth more than $120 billion, Santos said last month.

“This project and economic development more generally is important in underpinning the skills, tax revenue, wealth and capacity to respond and rebuild in the aftermath of the current flood crisis in Queensland,” Australian Energy Minister Martin Ferguson said in the statement.

ConocoPhillips and Origin Energy Ltd. plan a rival coal- seam gas-to-LNG venture in Queensland targeting rising Asian demand for cleaner-burning alternatives to coal. Arrow Energy, acquired last year by Royal Dutch Shell Plc and PetroChina Co., proposes a fourth LNG project in the state.

Gorgon LNG

Santos is feeding its project with gas resources from the Bowen and Surat Basins in southeast Queensland and building a 420-kilometre pipeline to Gladstone. The floods aren’t expected to cause any delays to the development schedule, Knox said.

Santos has “plenty of reserves available to us” to support two LNG processing units, or trains, at the Gladstone site, Knox said on the call.

The Santos-led venture will have more than half the capacity of the A$43 billion Gorgon LNG project that Chevron Corp. and partners Exxon Mobil Corp. and Shell are building in Western Australia. The country’s largest resources development is due to begin LNG exports in 2014 from a three-unit, 15 million ton-a-year facility and may add a fourth and perhaps a fifth processing unit.

LNG is natural gas that has been chilled to liquid form, reducing it to one-six-hundredth of its original volume at minus 161 degrees Celsius (minus 259 Fahrenheit), for transportation by ship to destinations not connected by pipeline. On arrival, it’s converted back into gas for distribution to power plants, factories and households.

Sourced & published by Henry Sapiecha


Monday, November 8th, 2010

Woodside in defence mode

as Shell sells down

Barry FitzGerald
November 8, 2010 – 2:18PM

Australia’s biggest independent oil and gas company Woodside Petroleum is in takeover defence mode after long-time shareholder and technical adviser Shell offloaded a 10 per cent stake for $3.3 billion.

The sale will leave Shell with a 24.27 per cent Woodside stake but has signalled that Shell is an eventual seller of the rest of its stake, with BHP Billiton a candidate following its inability to secure Canadian government approval last week for its $40 billion hostile takeover bid for crop nutrient producer Potash Corp.

Shell’s divestment to a spread of investors through UBS AG is at $42.23 a share.

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That is at a discount to Woodside’s closing market price today of $45.86 a share – a higher level reached in recent days in response to speculation that BHP would now turn its attention to the operator of the North West Shelf gas project following the Potash disappointment.

Shell has told buyers of the offloaded stake that it will stick around with the rest of its holding for at least one year.

Shell chief executive Peter Voser said Shell’s selldown was part of the Anglo-Dutch giant’s drive to focus on direct investments, rather than indirect stakes. ‘‘We will manage our remaining position in Woodside over time in the context of our global portfolio.”

The selldown by Shell means that the world’s oil and gas majors – minus Shell – will be running the rule over the country’s premier liquefied natural gas producer.

The move by Shell comes as future management of Woodside is left in limbo following the recent decision by long-serving chief executive Don Voelte to return to America.

Sourced & published by Henry Sapiecha


Thursday, July 29th, 2010

Chevron signs KOGAS

as new Wheatstone customer

AAP July 20, 2010, 7:42 am

Chevron has found more gas off the WA coast.
Via Bloomberg / SUPPLIED ©

The Korea Gas Corporation has signed a 20-year agreement worth billions of dollars to purchase liquefied natural gas from the $25 billion Wheatstone gas project off the North-West coast.

US oil giant Chevron Corporation, the operator of the project in Ashburton North, said its Australian subsidiaries had signed a Heads of Agreement with KOGAS.

The new agreement will boost the likelihood of the Wheatstone project getting final approval, slated for next year.

KOGAS, the largest LNG buyer in the world, will purchase 1.5 million tonnes per annum of LNG from Wheatstone for 20 years.

The company also signed an agreement to acquire a five per cent stake in Chevron’s Wheatstone field licenses and in the Wheatstone project LNG and domestic gas processing facilities.

KOGAS’ LNG purchase together with its equity participation will see KOGAS take delivery of about 1.95mtpa of Wheatstone LNG.

State One Stockbroking energy analyst Peter Kopetz estimated the deal with KOGAS would be worth about $20 billion over its 20 year life, based on previous deals announced.

He said such a move would boost the chances of the gas project getting final approval.

“I think Wheatstone now has contracted about 80 per cent of its LNG,” Mr Kopetz said.

Tokyo Electric Power Company last year signed Australia’s biggest energy deal, with a deal worth an estimated $90 billion to take 4.1mtpa of Wheatstone gas during the next 20 years.

KOGAS has previously signed a deal with Chevron for 1.5 million tonnes per annum of LNG from the Gorgon gas project offshore from WA.

Chevron has not disclosed the value of the latest deal.
Sourced & published by Henry Sapiecha