QGC (QCLNG), SANTOS GLNG and Australia Pacific LNG (APLNG) to share gas supply in new partnership.







What would have been unheard of just a few years ago now has all three major CSG proponents discussing gas sharing arrangements. This business collaboration has been established through the necessity of each operator to run their coal seam gas (CSG) to liquefied natural gas (LNG) conversion plants or ‘trains’ at optimum efficiency. QGC - a BG Group Business, SANTOS GLNG and APLNG are now working towards the construction of three separate CSG to LNG conversion trains on Curtis Island which is located off Gladstone in Central Queensland. In some cases the plants are only hundreds of metres apart from each other.

The potential risk exists for any operators, to not have enough gas to run their ‘trains’ at peak efficiency and therefore sustain major project losses. This new cooperative approach allows proponents to swap, buy and sell gas between each player. Each operator will be highly reliant on the accuracy of instruments like large scale flow metering and real-time gas chromatographs to determine the ‘custodial transfer’ of the product.

Arrow Energy Ltd, owners Shell and Petrochemical Corp (Sinopec Group), stated position is that they may delay any final investment decision (FID) on moving forward with the Arrow LNG venture until 2014 amid rising costs in Australia and that it was still considering plans to combine its Arrow gas resources with other third parties.

Collaboration such as this is echoed by Climate Institute chief executive John Connor, ’…if Australia improved its energy efficiency by just 1 per cent each year, it would generate an additional $8 billion in gross domestic product (GDP) by the end of the decade, and $26 billion by 2030….(1)

At a combined cost of some $60 million AUD, this new collaborative approach is sure to bring increased efficiencies to the CSG/LNG space. These mutually beneficial arrangements point to a new level of collaboration, cooperation and maturity previously not seen in the CSG sector.

For more information please email Garry Hargreaves at garry.hargreaves@tafe.qld.edu.au


To read more, see below: http://finance.ninemsn.com.au/newsbusiness/motley/8685337/santos-and-bg-groups-gas-deal http://www.news-mail.com.au/news/gas-companies-to-team-up/1891766/ http://www.reuters.com/article/2013/07/04/australia-lng-santos-bg-idUSL3N0FA0TO20130704 http://www.bloomberg.com/news/2013-02-22/origin-open-to-deal-with-competitor-in-queensland-s-lng-industry.html

(1) August “the Australian Oil & Gas Review” p1.

Pipeline to jobs

 

NEW SKILLS: Malcolm Garrick, front, and other trainers learn the ropes before starting the course in large pipeline installation. Picture: Annette Dew

THE liquefied natural gas industry is growing, the pipes are getting bigger and the need for a skilled local workforce is turning trainers into students.  TAFE Queensland Skills Tech business manager Malcolm Garrick recently joined pipeline operators on a six-week training trip across the Malaysian Peninsula with Santos GLNG.  There Garrick learned about large-diameter pipeline surveillance, right of way operations, pipe digs and repairs. He is now training the trainers - in preparation to teach Australia's first large-diameter pipeline training course. "I think gas will be the most prominent resource fuel we (will) have," Garrick says. "It all leads to the export market and makes it a big industry in the region.  "There are many aspects to gas pipelines, from mechanical to electrical and instrumentation.  Our teachers are getting fully skilled up, spending time with gas pipeline technicians so they can deliver this course." In Malaysia Garrick trained at an international training facility run by Petronas a joint venture partner with Santos GLNG examining 2000km of pipeline along the east coast. He says there is already interest in the new course and people are changing their trades to get into the LNG industry.

"Of the six people I went over to Malaysia with, three came from different trade areas, one was a boilermaker, one a carpenter and the other a plumber," he says. "I think that goes to show that new people can be trained up for a career in the gas industry if they have the right attitude." Santos GLNG senior adviser of operations training, Lina Dickins, says the Australia first course will improve work opportunities for local job seekers and graduates. "Bringing these skills to Australia is a vital step in ensuring our industry has the skilled workforce it needs and is leaving a positive legacy for our state," Dickins says, adding: "Across the project, we continue to provide opportunities for locals to improve their skills, which will benefit our industry in the long-term." Pipeline operators skilled at installing and maintaining 106cm-diameter pipelines are needed to lay 420km of pipeline between the Surat Basin of southern Queensland and Curtis Island off Gladstone. 

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For more information please email Garry Hargreaves at garry.hargreaves@tafe.qld.edu.au