Global LNG to Rise 12 % by 2011

Global liquefied natural Gas was up 8.5 % year aon year in the first 6 months of 2011. Its expected to grow by 12% for the whole year. Step by Step Japan, United Kingdom and India are in continued growth.

LNG supply-demand balance will tighten over the next three to four years due to stronger demand growth, limited liquefaction capacity growth.Analysts said in a report, Japanese demand rose strongly in the second quarter of the year as LNG was the major substitute for the lost nuclear power following the March 11 quake and tsunami.
Currently, more than 60% of the global planned LNG liquefaction projects are located in Australia.
Japan's LNG imports were up 8% year on year in H1 2011
"LNG prices in Asia remained below oil parity pricing.

Kimberely Heritage Listing

Kimberely Heritage Listing
Woodside liquefied Gas hub in WA is not to be included in the Heritage listing.
Tony Blake the Federal Environmental Minister announced 19 million hectares near Broome will be given to the National Heritage Listing.
At James Price Point the Woodside project will not be put on the Heritage listing because it’s not environmentally sufficient.

Kimberley Economic Forum

Oppurtunites arise for Kimberely’s Ecomimney Employment rate will increase in Kimberley. The new LNG project has already employed 200 people, 38 of them Aboriginal LNG goal is to create 600 jobs locally in construction. The company is already employing 200 people locally, 36 of them Aboriginal.

Perth’s Airport Expansion

New Domestic Terminal in Perths Airport $120 million is due to start this month.

Broad Construction Services has been given the Contract for the new Terminal.

The New Terminal will include walk in and landscaped plazas, 16 check in counters. Passengers screening security zones, 14 aircraft gate walk ways and taxi and busses for arrivals and departures.
Ceo of Perth Airport, Brad Geatches said there investing 700 million over 3 years to expand Perth Airport.

The Construction of the Terminal will commence in August and is due to be completed by December 2012.

Fairstar Heavy Transport vessel FJELL Joins

Fairstar Heavy Transport has signed their third contract with Chevron PTY LTD and also with Kellogg Joint Venture – Gorgan. FJELL will provide transportation and equipment. Gorgan is going to extend the contract up to nine months.

Rio Tinto hands out Construction Contract

Rio Tinto handed out more Contracts for Construction of its new $1.15 billion Downs 4 Mines. Its looks ahead to up Iron ore output to 333 million tonnes a year by 2015 from Pilbara,
The Anglo-Australian mining said it had given contracts worth about $184 million to two joint ventures with indigenous Australians for work at the mine site.
Rio said more than $700m had been awarded to Aboriginal contractors under its expansion program.

Union must pay $1.5m to oil giant

Ordered by the Federal Court 1.5 Billion in compensation to be paid by Unionist Joe Mc Donald and his construction Forestry and Energy Union to Oil and Gas Woodside.

It’s one of the biggest penalties handed out to a union.

Kevin Reynolds CFMEU Secretary Kevin Reynolds said yesterday the Union had practical discussion to avoid much larger cost and fines if had continued the case.

Construction Forestry Mining Must Pay Oil Grant

Strikes in Joe McDonals Construction Foestry Mining and Energy Union have been caused the company to pay oil and gas giant Woodside more than 1.5million in compensation. Approximately 1200 construction workers did not show up for work on December 1 and 2, 2009, in protest against fly-in fly-out workers that were forced to change their standard accommodation at the end of each four-week shift. In a consent ruling, the CFMEU and Mr McDonald admitted they had engaged in and encouraged the unlawful strikes.CFMEU state secretary Kevin Reynolds said yesterday the union had made a pragmatic decision to avoid much larger costs and fines had they continued to contest the case. The court "permanently restrained" the CFMEU and Mr McDonald from engaging in unprotected industrial action at the Pluto site, the North West Shelf project and the Browse Basin. Woodside said it welcomed the decision.

‘Tough’ conditions on Chevron’s Wheatstone project

“Tough” conditions have been imposed on Chevron Corp’s proposed Wheatstone liquefied natural gas export project in the state’s northwest by Bill Marmion. Wheatstone may help Australia surpass Qatar as the world’s biggest exporter of liquefied natural gas by 2020, if it is given the go ahead. A Chevron spokesman stated that the company is “working through the details” of Marmion’s determination of public appeals against a mid-June report from the Environmental Protection Authority. “We look forward to a timely decision by the State and Federal Ministers for the Environment.’

Macedon Milestones

First steps
A pipe, 500 mm diameter, 75 km subsea pipeline and 15.5 km onshore pipeline is planned to move 200 million cubic feet daily to Ashburton North. It will connect the gas plant to the Dampier to Bunbury Natural Gas project. This project would be sanctioned as early as May 2010

In the beginning
Macedon Gas Field is too small and remote to develop alternatives for the project for BHP and Apache Northwest. The Field has an estimated gas in place volume of approximately 800 billion cubic feet. BHP has discovered this amount of gas will be insufficient to support term contracts required for a standalone LNG project.

Current Status
A $A1.43 billion gas project with Technip has been awarded a contract in May for the engineering work and services related to procurement and construction management for the project’s onshore gas plant and pipeline works.BHP was also awarded a $A45million contract for pipeline construction work. It includes horizontal directional drilling, construction of an onshore wet gas pipeline, sales gas pipeline and umbilical installation.

Northbridge Link

Works on the Fremantle rail line commence on Wednesday.
They are closing part of the William Street Footbridge due to sinking of the line.

Pedestrians can walk from the CBD TO Northbridge via the Horse Bridge.
Roe Street end of the Footbridge and the Western Concourse will be removed.
John Anderson Perth City Link Alliance Manager said the Fremantle line will be temporoly removed but will not create delays to commuters

Macedon Gas Field

In the beginning
The Macedon Gas Field has an estimated gas-in-place volume of approximately 800 billion cubic feet (Bcf), with a current estimate of proved recoverable gas in the order of 600 Bcf. BHP found that this volume of gas would be insufficient to support long-term contracts required for a stand-alone LNG project. The combination of increased demand for domestic gas and technological advancement offered the company the opportunity to develop the Macedon Gas Field in an economically feasible way.
First steps
BHP plans to pipe gas from the field via a 500 mm diameter, 75 km subsea pipeline and 15.5 km onshore pipeline to 200 Million cubic feet per day gas plant at Ashburton North. A number of different groups were asked for their input including: the Cape Conservation Group, the Conservation Council of Western Australia, the Department of Sustainability, Environment, Water, Population and Communities, and the Buurabalayji Thalanyji Aboriginal Corporation Department of Indigenous Affairs. In December 2010, Oceaneering International was contracted to the project to supply umbilicals and distribution equipment, which include supplying an integrated umbilical system consisting of approximately 100 km of steel tube umbilicals and associated distribution equipment, including termination assemblies and flying leads.

Current status
2011 has furthered developed the $1.43 billion gas project. Technips operating centres in Perth and Kuala Lumpur will execute the contract, it was to be completed in 2013. BHP was an $A45 million contract for pipeline construction work to a Streicher-Clough joint venture.

Kimberely Land Council wants

The Federal Government has been called by Kimberley Land Council to support a national heritage listing for the Kimberley to balance out a planned gas hub near Broome. This particular agreement is expected to accumulate $1.5billion in benefits to the region indigenous community over a 30 year period.

Broome LNG project

The Browse LNG Development is a project that has the potential to deliver many benefits for all Australians. Woodside says it believes the development can deliver economic and social benefit to local communities. They have addressed people have various concerns about the proposed development, as well as many people including the Indigenous community who are welcoming the project so they can find jobs and business opportunities from Browse. James Price Point is the location for an LNG precinct was made after a government-led assessment of 43 different options in the Kimberley, as well as sites in the Pilbara and the Northern Territory. The site for the LNG precinct was selected after consultation with Kimberley Indigenous people, with two years of negotiations ending with signing on 30th June 2011 a Native Title Agreement with Woodside and the State of Western Australia. This is a huge benefit for Indigenous people in Kimberley, giving them employment, education, training and various other benefits. $1 billion will be the cost of the packages and represents one of the largest and most comprehensive benefits packages ever established between a resource company and Native Title claimants in Australia.
‘We believe the deal we signed today will help our mob have a better chance to be standing on our own feet and not relying on government in the future’ Jabirr Jabirr Traditional owner Anthony Watson said in a media release. The Kimberley Land Council's Wayne Bergmann was quoted in The Australian newspaper saying: ‘The opportunities and benefits in this agreement are so significant and unheard-of in indigenous, industry and government relationships they will set a new precedent for Aboriginal engagement nationally’ Browse LNG Development will only go ahead if it meets the criteria under Australian and Western Australian environmental laws and regulations. Woodside will then make the final decision and our joint venture partners to take a final investment decision on the Browse LNG Development in mid 2012, in line with the conditions of the Browse retention leases.

LNG deal with South Korea

Over the next 20 years, a historic deal, set to be worth billions of dollars, will see Australia supply tonnes of liquefied natural gas to South Korea. The deals are with Royal Dutch Shell and Total SA, and the shipments will be valued at $US84 billion and will be equivalent to 17 per cent of Korea’s gas consumption in 2010. "The deals to import 5.64 million tons are the biggest in the country's history and will contribute to the stable supply of the fuel," the ministry said in the statement. Korea Gas is also planning to purchase a 10 percent stake in Shells Prelude project, after the gas contract.

Woodside Puto Liquefied Natural Gas Project

Completion is almost underway with the Puto liquefied natural gas project by Woodside, thanks to talks with various gas owners. "We are pleased with the progress of those particular discussions," Mr Coleman told a teleconference on Wednesday. Woodside first plan was to order in long lead-time items for an expansion train to enable the early start up but unfortunately they it has now been held off. "We are progressing the business case for those expansion options," Mr Coleman said. "We haven't reached a decision point yet on ordering long lead items for an expansion train." Mr Coleman has also come out and stated Woodside has perceived as an LNG focused company, but is still committed to its oil business.

Woodside May Sell Browse

Woodside Petroleum Ltd. (WPL), Australia’s second-largest oil and gas producer, may sell stakes in its Browse and Pluto liquefied natural gas ventures to help fund the developments as demand rises in Asia.

Coleman plans to develop an estimated A$75 billion ($79 billion) in Australian LNG projects with existing partners including BP Plc and Chevron Corp. (CVX) “It’s a matter of knowing how long to hold your cards,” said Coleman, declining to say when, or how much of the ventures, Woodside may sell. “I have a good hand.” Global trade in natural gas increased 10 percent last year from 2009 as energy use soared. Woodside completed an agreement in June that provided more than A$1 billion of benefits to indigenous groups in Western Australia and cleared the way for the Browse development.

Fuel on the market has been tight since the Fukushima nuclear disaster in Japan. After the March 11 Australian gas projects will benefit as countries delay nuclear power expansion plans earthquake and tsunami that crippled the Fukushima Dai-Ichi power station in Japan.

Sunrise may cost about $13 billion, according to the report. A$38 billion will cost Browse while a second Pluto processing unit may cost A$10 billion, Deutsche Bank AG estimated in a report this month. Woodside completed an agreement in June that provided more than A$1 billion of benefits to indigenous groups in WA. The accord gives the company access to land in the Kimberley region.

Chiyoda awarded Contract

Chiyoda Corp has been awarded a contract for the Arrow LNG plant project in Gladstone, Australia. Arrow Energy Pty Ltd, the project operator, is a 50/50 joint venture owned by Royal Dutch Shell PLC and PetroChina. Coal seam gas is a natural gas formed as a by-product of the coal formation process. 95-98% of it is methane with a small amount of nitrogen and, in some cases, contains carbon dioxide.

Woodside to move ahead with Pluto Expansion

Chief executive Peter Coleman of Woodside Petroleum said the company hasn’t secured sufficient equity gas to move ahead with the expansion of the Pluto liquefied natural gas project in Western Australia.
How much gas was required for an equity train would depend on the development options Woodside decides on and where the gas comes from, noting deep-water resources would carry higher development costs, Coleman stated. He said the company did not actually have a threshold number in mind for the amount of gas that would be needed before it would move ahead with any potential expansion.
“We are working through each of the opportunities and as they get aggregated into that pool then we are looking for where that trigger may be for us,” he said. Coleman said ongoing discussions for third party gas to support any possible expansion were also “maturing”.Woodside revealed last month it was yet to order long-lead items required for an expansion train, despite previously indicating it would place the orders by mid-2011 to maintain the earliest start up for an expansion train by the end of 2014.

S. Korea approves $84bn LNG import deals with Shell

Long term agreement has been announced with South Korea and Royal Dutch Shell and Total, worth $84 billion. South Korea is the world’s second biggest buyer of LNG, which will replace this deal with the agreements with Indonesia, Malaysia and Brunei, due to expire in 2013 and 2015. Under the new agreements, 5.64 million tons of LNG will be imported between 2013 and 2035. Worth 90 trillion won ($84.1 billion) over their lifetime, the deals are the nation’s largest ever long-term gas supply agreements.

Analysts had expected KOGAS to buy LNG from Prelude as Samsung Heavy Industries Co. Ltd. is building the giant vessel in South Korea to process and liquefy gas from the project. KOGAS has also signed preliminary agreements with Chevron for LNG from the Wheatstone and Gorgon projects, and is in talks with Chevron for a stake in Wheatstone. KOGAS already has a 15 percent stake in the Santos-led Gladstone 7.8 mtpa project to produce LNG from coal seam gas. The South Korean firm will buy 3.5 mtpa over 20 years from the project in Australia’s eastern state of Queensland.

According to Reuters poll of analysts Japans demand is expected to jump to over 12 percent this year alone. Shell and Totals deal has been stated it will help stabilize South Korea’s LNG supplies as a global energy supply. Seoul has come out and said they estimated the savings of approximately $110 million when it has bought LNG more cheaply than Japans latest agreement. Indonesia and Malaysia, long the top exporters and key suppliers to north Asia, are seeing their exports fall as rising domestic demand eats up more of their declining output. South Korea’s scramble to replace its expiring contracts comes as the regional LNG sector goes through a sea change.
South Korea’s LNG demand is to remain relatively low through the next decade, inching up to 34 million tons by 2024, up from 32 million in 2010. The ministry estimated the start up date would be in 2016. Until it can supply gas from Prelude, Shell will ship a million tons per year from Nigeria and Russia to South Korea, the ministry said. Ichthys has not received the final go ahead from the developers Inpex and Total, who are expected to take their investment decision in the fourth quarter this year and begin production in 2014. LNG project developers typically seek and sign long-term deals to sell their gas before they begin construction.

Woodside profit buoyed by higher oil prices

Woodside petroleum has stated a 3.6 per cent increase in first half underlying profit. Their shares rose 68 per cent in trading, with the company confirming its flagship Pluto LNG project to start producing in March 2012. Although there has been a higher evenue for Woodside has endured lower production and sales levels in 2011.

BT wins WA hospital IT contract

Serco has now been represented to be the IT partner on the new Fiona Stanley Hospital in Perth. BT said this prject will enable 70 jobs in Western Australia. BT added: "The Health Practice includes experts in clinical design assurance, clinical safety management, technical architecture and major program practice…In Australia BT has already utilised its clinical safety management experience and portfolio to support NeHTA [The National E-Health Transition Authority] in successfully developing its own clinical safety management capability."

Woodside higher Oil prices

Woodside Petroleum reported a 3.6 per cent rise in first-half underlying profit, beating analysts' forecasts as it was buoyed by higher oil prices. Woodside struck to its trimmer forecast for full year production of 62-64 million barrels of oil. In June it reported a near $1 billion cost blowout on the Pluto project to $US 14.9 billion and pushed out its start up to March 2012. Net profit fell to $US828 million ($792.65 million) for the six months to June 30 2011, from $US901 million for the same period a year earlier, Perth-based Woodside said in a statement. Despite the higher revenue, Woodside witnessed lower sales and production levels in 2011. Woodside’s interim dividend, fully franked, will be 55 US cents per share, with a record date of August 26. Revenue was up 7.2 per cent to $US2.253 billion, from $US2.102 billion.

Shell, PetroChina JV Awards Queensland LNG Contracts

Design and early engineering work is to begin on a multibillion dollar gas-export plant in Australia, Royal Dutch Shell PLC (RDSB) and PetroChina Co. (PTR) stated on Tuesday. It comes nearly a year after Shell and PetroChina acquired the project through their joint A$3.4 billion takeover of coal seam gas developer Arrow Energy Ltd. Shell and PetroChina's plans will involve the initial construction of two processing units at Gladstone that are capable of producing a combined 8 million tons of LNG annually for export. The companies have stated the annual capacity could be doubled to 16 million tons of LNG in future by adding two further trains.

By 2020Queensland's LNG output is set to reach at least 25 million metric tons, surpassing Australia's current LNG production that totaled 20.8 million tons in the year to June 30. "Labor shortages are likely to be a major constraint on projects meeting their timetables. Shortages are only beginning to emerge but are expected to intensify in 2012, particularly for project sub-contractors," EnergyQuest said. "The design will use Shell's proprietary LNG technology," Andrew Faulkner, chief executive of Arrow Energy, said in a statement.

Chiyoda awarded designed Contract

Australia’s Arrow Energy LNG project will be designed and engineered by Japans Chiyoda Corp. Arrow Energy was a 50-50 joint venture between PtreoChina and Royal Dutch Shell. Shell is now planning a 8Mta LNG facility near Gladstone. Arrows LNG plant has the potential to double its capacity.

LNG picked to soar In Queensland

According to the South Australian company's annual review of the industry the capacity of Queensland LNG is set to reach at least 25 million tonnes within nine years. Australia produced 20.8 million tonnes of LNG in the 12 months to June 30. "Shortages are only beginning to emerge but are expected to intensify in 2012, particularly for project sub-contractors," EnergyQuest chief executive Graeme Bethune said. Origin Energy and ConocoPhilips' A$35 billion ($44 billion) Australia Pacific LNG joint venture on Curtis Island off Gladstone, last month got the final investment decision to go ahead.

Western Australia Premier Colin Barnett yesterday said Australia should establish a LNG receival point on the East Coast so that rather than exporting it, the country could use more of the energy it produces. "Why wouldn't we make a simple policy decision as a country and use some of Australia's natural gas for power generation and distribution here, and do what Japan, Korea, China and India are quite deliberately doing," Barnett said on ABC Radio.

Australian contractor needs skilled migrants from the UK

Australia’s biggest contractors are refusing to bid for new contracts until it can cover labour shortages. “The government keeps the doors shut. They won’t have a migration policy that will allow people to come in,” he said. “It would seem that at the moment when Australia has got the best opportunity to capitalise on (liquified natural) gas and minerals wealth that we have, that we’re going to be constrained by labour.” David Stewart said. He also has blamed Julia Gillard’s government for not allowing enough skilled workers into Australia’s to allow vital projects to be complete.

Woodside: Confident On Browse Final Investment Decision

Australia’s biggest contractors are refusing to bid for new contracts until it can cover labour shortages. “The government keeps the doors shut. They won’t have a migration policy that will allow people to come in,” he said. “It would seem that at the moment when Australia has got the best opportunity to capitalise on (liquified natural) gas and minerals wealth that we have, that we’re going to be constrained by labour.” David Stewart said. He also has blamed Julia Gillard’s government for not allowing enough skilled workers into Australia’s to allow vital projects to be complete.

Demolition of PEC on track

Planning Minister John Day said the demolition of Perth Entertainment Centre will be complete by the end of the year. A $10 million works program to Perth Arena parking was an important milestone in the Perth City Link project.

Perth Airport Construction

Richard Spencer has joined Woods Bagot architecture firm as Design Director – Aviation, this is the firm’s third airport win in the year. “Airports are an essential piece of infrastructure that today, not only act as gateway to major cities, but also form part of the commercial precinct and urban fabric of our metropolis,” said Spencer. “The design of airport infrastructure has drastically changed and diversified to keep ahead of the demands of globalisation, and the future success of the aviation industry lies in understanding and delivering on the ‘airport-city’ concept,” he added.

Problem child Arena to cost more than $480 million

Perth Arena has now been estimated to cost slightly more than $480 million, the Treasurer Christian Porter has stated. It will open midyear, next year, three years after the initial opening date. Poor planning has been the reason for the delay. Mr Waldron is hoping artists like Elton John would be attracted to the venue and has promised it will provide value-for-money for WA taxpayers. Len Buckeridge, from builder BGC, is refusing to pay $45,000 in penalties for failing to meet the completion deadline in July. Opposition leader Eric Ripper has previously said while his party accepted some responsibility for the blowouts and delays, the Liberal Party also was to blame.

Velocious Lands Gorgon Subsea Work

Velocious has been awarded a contract to do special subsea work on US supermajor Chevrons Gorgon liquefied natural gas project in Western Australia. Chevron is trying to aim to bring the Gordon project onstream in 2014, the first phase will involve three liquefaction trains with a total capacity of 15 million tonnes of LNG per annum. Chevron holds a 47% stake as well as ExxonMobil 25%, Osaka Gas 1.25%, Shell 25%, Tokyo Gas 1% and Chubu electric power 0.417%.