Latest news with #gasdevelopment
ABC News
20-07-2025
- Business
- ABC News
Waitsia gas project delays leave Kerry Stokes-backed firm exporting reserved WA supplies
A gas development backed by media mogul Kerry Stokes has been tapping into Western Australia's domestic gas market to supply overseas customers amid long delays in the delivery of the plant. At the time, the project was supposed to cost $700 million and be operational by late 2023. Mr McGowan said unless Waitsia was exempted from the ban, "the project might not happen" and the gas may have stayed in the ground. But almost two years after that deadline and with a construction bill running at almost double the original estimate, the project is still not ready. In the meantime, the ABC can reveal the project's owners have been taking gas from the domestic market to supply their customers overseas. Waitsia's owners are Beach Energy — the ASX-listed gas producer backed by Seven Group, the conglomerate controlled by Mr Stokes — and Mitsui, a Japanese trading firm. Filings by Beach and public reporting of supplies to and from the Dampier to Bunbury gas pipeline — WA's main energy artery — suggest the partners have sent more than a dozen liquefied natural gas (LNG) cargoes since late 2023. As much as 180 terajoules a day — or roughly 15 per cent of the gas used in the local WA market — has been diverted for export at times during that period, according to the Australian Energy Market Operator's gas bulletin board. In its filings, Beach said the gas has been sourced via so-called swap arrangements, in which the company takes existing supplies from the domestic market on the promise it will return an equivalent amount later when Waitsia is up and running. The gas is processed into LNG at the North West Shelf, a giant plant in the Pilbara where supplies have been dwindling for years. While neither company would comment, Waitsia's backers have pointed out that prices for gas in WA's domestic market have been falling in recent times. From as much as $11.60 a gigajoule in late 2023, according to Perth-based firm Gas Trading Australia, prices on the spot market had fallen to just $6 a gigajoule. On the east coast, by contrast, prices were trading between $10 and $15 a gigajoule. Peter Strachan, a veteran resources analyst, said the fact prices had been falling while Waitsia's partners were exporting domestic gas was nothing more than luck. Mr Strachan said while there was nothing unlawful about what the partners were doing, it raised questions about the integrity of WA's domestic gas market. "It's serendipity," Mr Strachan said. "It might be good business operations, but I think it goes against the whole idea that the gas in Western Australia is for West Australians to consume. "And that's whether it's today or tomorrow or in 10 or 20 years' time." Under WA's laws, the market is supplied courtesy of a 15 per cent reservation policy on offshore fields. It is also supplied by onshore fields. Up until the exemption awarded to Waitsia, onshore projects had exclusively supplied the local market. After years of chopping and changing policy, the WA government last year said it would allow onshore developers to export up to 20 per cent of their reserves but only until 2030. By that time, the Australian Energy Market Operator has forecast that WA will enter a structural deficit of gas, sparking warnings that some users could be pushed to the wall. Mr Strachan said some of the problems that had bedevilled Waitsia were beyond the control of its owners. Chief among them was the collapse of construction company Clough in late 2022. But he queried why Beach and Mitsui were being allowed to take relatively cheap gas from the domestic market to cover their position with buyers overseas. "They had to find some gas from somewhere to meet those obligations they couldn't meet because their project was basically two years delayed," he said. "You would have thought if they were stuck and had to find gas, they could have … bought that gas on the open market from the North West Shelf or from Gorgon or from somewhere in Kuwait. "But they might have made a loss doing that. The DomGas Alliance, which represents some of Australia's biggest gas users such as Wesfarmers, Alcoa and Yara, was equally sceptical. DomGas Alliance spokesman Richard Harris said taking gas from the local market to sell internationally flew in the face of WA's domestic policies. "Domestic gas, when it's in the market in WA, is for WA use, not for export," Mr Harris said. Mr Harris said it was true domestic users were currently enjoying a period of relatively subdued pricing. But he said that reprieve was likely to be temporary. What's more, he said it had been largely caused by the loss of some major gas customers, such as mining giant BHP's Nickel West division and an alumina refinery owned by Alcoa. There had also been, he noted, a short-term bump in extra supplies from Woodside's Pluto project following scrutiny from a state parliamentary inquiry. "All forecasts say that is just a short-term phenomenon," he said. "Within a couple of years, we're going to be heading for a shortfall, and that's certainly what all the forecasts say by 2028, we're in for a significant shortfall of gas." The WA government declined a request to be interviewed about the exports. Instead, it issued a statement in which a spokesperson said Waitsia's export approval also came with a commitment to supply domestic gas. The spokesperson also insisted swap arrangements pursued by Waitsia's partners would have little effect on the domestic gas market. "No further swap arrangements are anticipated once the Waitsia gas plant is operational," they said. "The export of these LNG cargoes does not impact the delivery of Waitsia's domestic gas commitment." Shadow Energy Minister Steve Thomas was not as charitable. Dr Thomas said the export of domestic supplies was clearly never intended by those who designed the state's domestic gas policy. "I don't think the architects of the domestic gas policy ever expected that onshore domestic gas would have to be substituted into the offshore market to meet existing contracts," Dr Thomas said. He argued the government had been so inconsistent in its management of domestic gas policies that they had been turned into a mess. "So the domestic gas policy either stands up or it doesn't," he said. Under the terms of the deal in 2020, the Waitsia partners were allowed until the end of 2028 to export 7.5 million tonnes of LNG. Mr Harris from the DomGas Alliance noted that the project partners were fast running out of time in which to meet their export quotas. Given the lucrative nature of the overseas LNG market, where gas can fetch far higher prices than from domestic buyers, he anticipated a push to extend the export approvals. But he stressed it was something the alliance would oppose. And he warned a failure to do so would risk higher gas prices and "mean the projects that we want to happen like critical minerals won't be able to find gas". "They [Waitsia] were always given a timeline when they had to deliver their bargain to the state, which was to deliver gas into the domestic market in 2029," Mr Harris said. "And that timeline should stick." Peter Strachan agreed but wondered whether Waitsia would still have the reserves to supply the WA market after 2028, noting the project's partners had been progressively writing down their estimates of the gas contained in the field. "Where they thought there would be gas they've drilled and 'oh, there's no gas'," Mr Strachan said. "They're lucky now that they've actually got enough gas to meet their commitments. But where does that leave the local consumer?"
Zawya
09-07-2025
- Business
- Zawya
PDO leads Oman's energy push with $1bln gas project
MUSCAT: Petroleum Development Oman (PDO) is powering Oman's dual energy strategy with a $1-billion gas development project and major new investments in renewable energy, according to the Ministry of Energy and Minerals' 2024 Annual Report. The company's flagship gas initiative targets the Haima reservoirs — Amin, Miqrat and Barik — and brought 12 wells online last year. The project is expected to recover 2.22 billion cubic metres of gas and 0.34 million cubic metres of condensate, supporting domestic demand and securing future supply. 'In 2024, the Directorate of Project Delivery focused on the execution of a comprehensive portfolio of oil and gas extraction projects with a total value of $1 billion,' according to the Annual Report. The development comes at a critical time as Oman seeks to bridge projected gas gaps between 2024 and 2026, and again beyond 2031. PDO's production adds long-term stability to the country's energy mix. In parallel, PDO advanced into clean energy through three major renewable projects. In partnership with OQ Alternative Energy and TotalEnergies, the company is developing a 100 MW solar PV plant in north Oman and two wind farms totalling 200 MW in the south. The projects will come online in 2026 and are expected to generate over 1.4 terawatt-hours of electricity annually — reducing emissions by more than one million tonnes per year. The shift supports Oman's goal to reach Net-Zero emissions by 2050. PDO also remained Oman's leading exploration company in 2024, drilling 24 of the country's 54 oil wells and 9 of 19 gas wells. It accounted for 62% of the nation's total oil and condensate reserves.
Zawya
03-07-2025
- Business
- Zawya
ADNOC's Hail and Ghasha offshore gas mega-project achieves ‘sail-out' milestone
ABU DHABI - ADNOC's Hail and Ghasha mega-project has met a key development milestone, having completed the "sail-out" and installation of critical offshore facility structures from the NMDC Energy Yard in Mussafah, Abu Dhabi. The structures – called steel 'jackets' – form the foundation of the project's offshore facilities. Delivered on schedule and in line with the highest safety and quality standards, the first 2 jackets were transferred from the fabrication yard to the cargo barge and shipped 160 kilometres offshore for installation by NMDC's Safeen-3000 vessel where they were precisely positioned on the seabed. This achievement reflects the exceptional coordination and expertise of dedicated project teams and partners, ensuring the structure's secure anchoring and readiness for the next stage of offshore infrastructure assembly. The Hail and Ghasha Development Project is the world's largest gas development of its kind and an important enabler of gas self-sufficiency and the UAE's growing gas exports. The Concession will produce 1.5 billion standard cubic feet of natural gas per day – enough to meet the daily gas demand of Ireland, Greece and Portugal combined. It aims to operate with net-zero emissions, capturing 1.5 million tonnes of CO2 annually, equivalent to removing over 300,000 fossil fuel powered cars off the road. Musabbeh Al Kaabi, ADNOC Upstream CEO, said, 'ADNOC's Hail and Ghasha project is an important enabler of UAE gas self-sufficiency, and this sail-out puts us one step closer to delivering on the project. The mega-project is being Made in the Emirates, driving industrial growth and reinforcing the UAE's advanced manufacturing capabilities.' Hail and Ghasha embodies the ethos of the 'Make it in the Emirates' initiative and ADNOC's success in boosting In-Country Value, by prioritising local manufacturing, investing in UAE-based suppliers, supporting economic diversification and nurturing local talent. With 118 UAE graduates recruited across the project to date, this provides highly skilled career opportunities for UAE nationals to play a key role in delivering this world-scale project.
Zawya
24-06-2025
- Business
- Zawya
Jordan's NPC unveils plan to raise gas output to 418mln cubic feet daily by 2030
AMMAN — Director General of the National Petroleum Company (NPC) Mohammad Khasawneh on Sunday welcomed the Cabinet decision allowing the company to retain JD3.4 million in government returns from 2024, to support key gas development projects at the Risha gas field. Khasawneh stressed that the decision is critical to enabling the company to implement its strategic plan to achieve energy self-sufficiency. The plan aims to boost daily natural gas production to 418 million cubic feet by 2030, through a three-pillar approach focused on expanding drilling operations, upgrading infrastructure, and integrating with regional gas networks, the Jordan News Agency, Petra, reported. The retained funds will be used to drill 80 wells in the Risha field as part of the first phase of development, Khasawneh said adding that this move comes under the production-sharing agreement between the government and NPC, which grants the company the right to temporarily retain the state's share of revenues to reinvest in production capacity expansion. Khasawneh noted that the company operates under a concession framework, which stipulates equal revenue sharing between the government and NPC after cost recovery. He stressed that achieving the 2030 target requires significant upfront investment, particularly over the next three years, that far exceeds current revenues, highlighting that the government has agreed to temporarily forgo its share to bridge the funding gap, starting with the 2024 allocation. He also explained that the company's strategic plan includes drilling 145 wells between 2025 and 2030. "NPC has already launched the procurement process to contract international companies for turnkey drilling services using three rigs, he said. "The prequalification phase has been completed, and shortlisted companies have received the tender documents. Technical and financial bids are currently being prepared, with the initial 80-well phase subject to expansion." In parallel with drilling activities, NPC is advancing the second pillar of its plan: infrastructure development. This includes upgrading gas processing stations and constructing pipelines to link production wells with treatment facilities. The third pillar focuses on connecting the Risha field to the Arab Gas Pipeline, allowing gas to reach major consumption hubs across Jordan, from Aqaba in the south to the northern border, thus maximising distribution efficiency and national benefit, he said. Currently, NPC supplies gas primarily to the Risha power plant. However, the company has begun delivering compressed natural gas (CNG) to the industrial sector, with two companies already receiving supply and a third expected to start soon, via Jordan Gas Company and Watani Company. Additionally, two new gas compression and liquefaction stations are under development, aiming to extend gas delivery to a broader range of industrial clients. Khasawneh said that the expansion would significantly boost the company's revenue, enhance its financial sustainability, and reduce energy costs for the industrial sector by 30 to 60 per cent. © Copyright The Jordan Times. All rights reserved. Provided by SyndiGate Media Inc. (
Trade Arabia
10-06-2025
- Business
- Trade Arabia
Adnoc Gas awards $5bn contracts for key Abu Dhabi RGD project
Adnoc Gas, an integrated gas processing and sales company, has awarded key engineering, procurement and construction management (EPCM) contracts worth $5 billion for the first phase of its Rich Gas Development (RGD) project in Abu Dhabi, marking a key milestone in the company's largest-ever capital investment. These contracts involve expanding key processing units to increase throughput and improve operational efficiency across four Adnoc Gas Facilities - Asab, Buhasa, Habshan (Onshore), and the Das Island liquefaction facility (Offshore). The company intends to take final investment decisions (FID) on two additional phases of the RGD project at Habshan and Ruwais to enable the delivery of greater production capacity to meet growing market demands. The RGD project will enable the development of new gas reservoirs, which are key to boosting liquid gas exports, supporting gas self-sufficiency in the UAE, and providing essential feedstock to the country's growing petrochemical industry, it stated. According to Adnoc Gas, EPCM contracts have been awarded in three tranches for phase 1. The first tranche, valued at $2.8 billion, has been awarded to Wood for the Habshan facility. The remaining two tranches – $1.2 billion for the Das Island liquefaction facility and $1.1 billion for the Asab and Buhasa facilities – have been awarded to two consortia: Petrofac; and Kent, it stated On the new contracts, Adnoc Gas CEO Fatema Al Nuaimi said: "The FID and contract awards for the first phase of the Rich Gas Development project mark a significant milestone in our strategy to deliver +40% ebitda growth between 2023 and 2029." "This strategic investment is expected to deliver significant new value for our shareholders and enable continued sustainable growth for the company, our employees, and the UAE," she stated. Phase 1 of the RGD project focuses on optimising and debottlenecking existing gas assets while unlocking new and valuable gas streams. As part of Adnoc Gas' long-term strategy, which is focused on growth and futureproofing its business, the RGD project aligns with the company's vision to deliver important growth initiatives between 2025 and 2029, said Al Nuaimi.
