• 4 minutes Mueller Report Brings Into Focus Obama's Attempted Coup Against Trump
  • 7 minutes Countries with the most oil and where they're selling it
  • 10 minutes Stack gas analyzers
  • 13 minutes What Would Happen If the World Ran Out of Crude Oil?
  • 2 mins US Military Spends at least $81 Billion Protecting OPEC Persian Gulf Oil Shipping Lanes (16% DoD Budget)
  • 6 hours How many drilling sites are left in the Permian?
  • 9 hours "Undeniable" Shale Slowdown?
  • 7 hours China To Promote Using Wind Energy To Power Heating
  • 4 hours Gas Flaring
  • 1 hour Mueller Report Brings Into Focus Trump's Attempts to Interfere in the Special Counsel Investigation
  • 6 hours Climate Change Protests
  • 2 hours Overheating the Earth: High Temperatures Shortened Alaska’s Winter Weather
  • 1 day Oil at $40
  • 22 hours Japan’s Deflation Mindset Could Be Contagious
  • 1 day Negative Gas Prices in the Permian
  • 6 hours Tax Credits for Energy Storage
  • 6 hours Everything Is Possible: Germany’s Coal Plants May Be Converted to Giant Batteries
  • 18 hours U.S. Refiners Planning Major Plant Overhauls In Second Quarter

Breaking News:

Guaido Takes Strides To Topple Maduro

Oil Bulls Undaunted By OPEC Fears

Oil Bulls Undaunted By OPEC Fears

Fears of OPEC+ abandoning its…

Did Russia Just Call The End of The OPEC Deal?

Did Russia Just Call The End of The OPEC Deal?

OPEC and heavyweight Russia may…

Australia Takes On Qatar For Top LNG Producer Status

LNG

Australia this week moved a step closer to becoming a real problem for Qatar on the LNG market, after the second floating production, storage, and offloading vessel for the Ichthys gas field reached its destination.

The Ichthys Venturer joins the Ichthys Explorer at the field operated by Japan’s Inpex, with the first LNG shipment from the field scheduled for next spring.

The Venturer has a capacity of 1.12 million barrels of gas condensate and will process, stabilize, and store condensate it will receive from the other FPSO, and then load it on tankers.

The Ichthys largest overseas investment by Japan, and Inpex, Reuters notes, and the company’s first foray into LNG.

The US$34-billion project will tap reserves estimated at over 12 trillion cu ft of natural gas, helping Australia take on the world leader in LNG exports, Qatar. It has run into difficulties, however, with costs rising to US$37 billion and the launch of production getting delayed by a year.

Now analysts are watching the Ichthys development closely to see if Inpex could “pull it off without any more budget blow-outs and delays,” and whether it could compete with Shell in Australian waters. Earlier this year, the Anglo-Dutch supermajor delivered the Prelude FPSO to its same-name field, in waters adjacent to the Ichthys. The US$12.6-billion development has also been running behind schedule and now first production from the world’s largest FLNG facility is set for between April and July 2018.

Who beats who to first production is important because the Prelude and the Ichthys share reserves, analysts note, so whoever starts earlier, will be effectively undermining the production of the loser.

Related: China Prepares For A Natural Gas Import Boom

Inpex, however, is better placed to benefit either way: it has a minority stake in the Prelude project besides its 62.2 percent interest in Ichthys.

Australia is eyeing the top spot among LNG exporters by 2020 thanks to an investment boom estimated at US$200 billion. However, a gas shortage on the domestic market earlier this year prompted the federal government to install export controls aimed at first ensuring local energy security and then advancing the export growth strategy.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment
  • Naomi on August 15 2017 said:
    Natural gas is replacing OPEC.

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News