Open-access midstream infrastructure and its effects on the Australian gas market

2017 ◽  
Vol 57 (2) ◽  
pp. 493
Author(s):  
Steve Lewis ◽  
Jon Serfaty ◽  
Michael Brooks ◽  
Ben Smith
Keyword(s):  
Service Industry ◽  
Unit Cost ◽  
Oil Prices ◽  
Transport Infrastructure ◽  
Spare Capacity ◽  
Capital Costs ◽  
Gas Processing ◽  
Large Joint ◽  
Exploration And Production ◽  
Gas Market

Australia’s energy industry has evolved around a vertically integrated structure with exploration and production (E&P) companies carrying out production, processing and development of associated infrastructure, such as pipelines. We suggest the next innovation for productivity improvements is a ‘North American model’, whereby a midstream service industry develops, owns and operates shared gas processing and transport infrastructure, allowing the E&P sector to direct limited capital to focus on exploiting and marketing the resource without necessarily building or operating the associated infrastructure. E&P companies are being challenged by the lower oil prices, and balance sheets are under strain from high debt levels. Large joint ventures are no longer the natural owners of gas processing facilities as the original gas reserves decline and other reserve owners seek to use spare capacity. Junior explorers are also challenged as capital is redirected elsewhere while oil prices remain low. Herein we demonstrate that collaboration in shared infrastructure will restore value. Benefits to E&P companies include minimising upfront capital, lower unit cost through scale and sharing of risks with other projects and partners. Midstream infrastructure owners and operators can provide additional benefits because they typically have lower rates of return expectations, lower capital costs and debt premiums, have specialist knowledge and enable sharing of production and transportation costs. Through case studies, we outline the key commercial considerations from the perspective of both the explorer and the asset owner, demonstrate the potential financial benefits and promote further debate on what is stopping the development of this midstream service industry in Australia.

Light Railways as the Basic for Transport Infrastructure Development in Northern Territories of Russia

2020 ◽  
pp. 97-101
Author(s):  
P.I. Tarasov
Keyword(s):  
High Speed ◽  
Road Transport ◽  
Transport Infrastructure ◽  
The Arctic ◽  
Infrastructure Development ◽  
Capital Costs ◽  
New Type ◽  
The Republic ◽  
Northern Territories ◽  
Mode Of Transport

Research objective: studies of economic and transport infrastructure development in the Arctic and Northern Territories of Russia. Research methodology: analysis of transport infrastructure in the Republic of Sakha (Yakutia) and the types of railways used in Russia. Results: economic development of any region is proportional to the development of the road transport infrastructure and logistics. When a conventional railway is operated in the Arctic conditions, it is not always possible to maintain a cargo turnover that would ensure its efficient use, and transshipment from one mode of transport to another is very problematic. A new type of railway is proposed, i.e. a light railway. Conclusions: the proposed new type of transport offers all the main advantages of narrow gauge railroads (high speed of construction, efficiency, etc.) and helps to eliminate their main disadvantage, i.e. the need for transloading when moving from a narrow gauge to the conventional one with the width of 1520 mm, along with a significant reduction in capital costs.

Gas market prospects and relationship with oil prices

Energy Policy ◽  
1986 ◽  
Vol 14 (4) ◽  
pp. 329-346 ◽  
Author(s):  
Jacques Percebois ◽  
Jacques Percebois
Keyword(s):  
Oil Prices ◽  
Gas Market

World Oil Prices Flat to Declining

1994 ◽  
Vol 12 (2-3) ◽  
pp. 159-165
Author(s):  
M.A. Adelman
Keyword(s):  
Natural Gas ◽  
Market Share ◽  
Oil Prices ◽  
Trade Off ◽  
Natural Gas Market ◽  
Demand Growth ◽  
Gas Market

The OPEC cartel failed to keep prices above the competitive level because, among other reasons their market sharing mechanism failed. Their best future seems to indicate a trade-off-by relinquishing some market share for a higher price. Slow demand growth and expansion of the natural gas market should restrict OPEC sales. Non-OPEC is likely to expand but the price will be under downward pressures.

Amoco Corporation

2017 ◽  
pp. 1-28
Author(s):  
Susan Chaplinsky ◽  
Luann J. Lynch ◽  
Paul Doherty
Keyword(s):  
Oil Prices ◽  
Cash Flows ◽  
Production Costs ◽  
British Petroleum ◽  
Uncertain Environment ◽  
Exploration And Production ◽  
Future Cash Flows

This case is one of a pair of cases used in a merger negotiation. It is designed to be used with “British Petroleum, Ltd.” (UVA-F-1263). One-half of the class prepares only the British Petroleum (BP) case, and one-half uses this case. BP and Amoco are considering a merger, and are in the process of negotiating a merger agreement. Macroeconomic assumptions, particularly forecasting future oil prices in an uncertain environment, and assumptions about Amoco's ability to reduce exploration and production costs make Amoco's future cash flows difficult to predict.

Earning community trust to operate – Northern Gas Pipeline

2018 ◽  
Vol 58 (2) ◽  
pp. 609
Author(s):  
Jonathan Spink
Keyword(s):  
East Coast ◽  
Training And Development ◽  
Gas Pipeline ◽  
Compressor Station ◽  
Land Access ◽  
Gas Processing ◽  
The Social ◽  
Social Support Services ◽  
Gas Market ◽  
Base Load

The Northern Gas Pipeline (NGP), is a 622-km gas pipeline in outback Australia that will connect gas reserves in the Northern Territory to the east coast gas market. With the current east coast gas crisis and continuing pressure to reduce coal-fired base load power, this project creates a new market to deliver additional gas to the east coast. The project includes the construction of the pipeline and two compressor station facilities at the start and end of the line: the Phillip Creek Compressor Station, which includes gas processing infrastructure, and the Mount Isa Compressor Station. The AU$800 million project began in November 2015 and first gas is scheduled to flow in late 2018. The bid to contract the pipeline included a range of local and Indigenous commitments that would maximise local participation in the project, ensuring that the social licence to achieve land access and government approvals was realised while keeping to a very aggressive timetable. Jemena worked closely with local businesses, communities and Traditional Owners to provide training and development opportunities, employment and other social support services. This approach has meant that the project is on track to deliver this nationally significant gas pipeline under budget, ahead of the contractual schedule requirement, while meeting or exceeding all local obligations and commitments.

scholarly journals Flow Assurance in Subsea Pipeline Design - A Case Study of Ghana’s Jubilee and TEN Fields

2019 ◽  
Vol 19 (1) ◽  
pp. 72-85
Author(s):  
S. A. Marfo ◽  
P. Opoku Appau ◽  
J. Acquah ◽  
E. M. Amarfio
Keyword(s):  
Flow Rate ◽  
Hydrate Formation ◽  
Flow Assurance ◽  
Processing Plant ◽  
Subsea Pipeline ◽  
Gas Processing ◽  
Parallel Pipeline ◽  
Exploration And Production ◽  
Insulation Thickness ◽  
Pipeline Design

The increasing exploration and production activities in the offshore Cape Three Point Blocks of Ghana have led to the discovery and development of gas condensate fields in addition to the oil fields which produce significant amount of condensate gas. These discoveries require pipelines to transport the fluids avoiding hydrates and wax formation. This paper focuses on subsea pipeline design using Pipesim software that addresses flow assurance problems associated with transporting condensate gas from the Jubilee and TEN Fields to the Atuabo Gas Processing Plant. It also considered an alternate design that eliminates the need for capacity increase of flowlines for the futuristic highest projected flow rates in 2030. The design comprises of two risers and two flowlines. Hydrate formation temperature was determined to be 72.5 ˚F at a pressure of 3 000 psig. The insulation thickness for flowlines 1 and 2 were determined to be 1.5 in. and 2 in. respectively. The pipe size for flowlines 1 and 2 were determined to be 12 in. and 14 in. respectively. The maximum designed flow rate was determined to be 150 MMSCFD. To meet the highest projected flow rate of 700 MMSCFD in the year 2030 at the processing plant, a 16 in. ID pipeline of 44 km length was placed parallel to the 12 in. ID flowline 1. This parallel pipeline increased the designed flow rate by approximately 4.7 times (705 MMSCFD). The alternate design employs 18 in. and 20 in. ID pipes for flowlines 1 and 2 respectively. Keywords: Condensate Gas; Flowline; Flow Assurance; Hydrate; Pipesim

scholarly journals A Strategic Model Of European Gas Supply

2011 ◽  
Vol 7 (5) ◽  
Author(s):  
Vitaly Kalashnikov ◽  
Nataliya Kalashnykova
Keyword(s):  
Natural Gas ◽  
Structural Changes ◽  
Value Added ◽  
Transport Infrastructure ◽  
Perfect Competition ◽  
Strategic Behaviour ◽  
Second Stage ◽  
Strategic Model ◽  
Gas Market ◽  
Gas Supply

Structural changes in the European natural gas market such as liberalization, increasing domestic demand, and increasing import dependency have triggered new attempts to model these markets accurately. In this paper, we propose an exhaustive model of the European natural gas supply including the possibility of strategic behaviour of the agents along the value-added chain. We structure it as a two-stage-game with natural gas exports to Europe (first stage) and wholesale trade within Europe (second stage). The case of non-cooperative Cournot competition at both stages proves to be the most realistic scenario. The results of the perfect competition and cartel scenario are also presented. Our results suggest that the main suppliers of natural gas to Europe (Russia, Algeria, the Netherlands, Norway) remain dominant, but that they are complemented by overseas supplies of liquefied natural gas (LNG). The model also enables us to identify transport infrastructure bottlenecks where transport capacity constraints are binding.

US midstream energy may see consolidation

2015 ◽  
Keyword(s):  
United States ◽  
Environmental Policy ◽  
Oil Prices ◽  
The United States ◽  
Content Type ◽  
White House ◽  
Oil Exports ◽  
Processing Plants ◽  
Exploration And Production ◽  
Keystone Xl

Significance The shale revolution in the United States created an explosion in upstream exploration and production (E&P) activity, as well as unprecedented demand for infrastructure to connect newfound resources with refineries and processing plants. Even a brief pause in shale revenue and drilling could imperil investment in this midstream sector. Impacts Keystone XL may be traded by the White House for environmental policy from Congress. The decline in oil prices will hit the Texan economy, as well as the presidential hopes of former Governor Rick Perry. Although oil exports may not be permitted, swaps with Mexico will ease oversupply of light crude.

RISK APPETITE: A HUNGER FOR THE UNKNOWN OR STRANGLEHOLD ON GROWTH?

2005 ◽  
Vol 45 (1) ◽  
pp. 203
Author(s):  
B.K. Johnson
Keyword(s):  
Oil Prices ◽  
Foreign Exchange Rates ◽  
Value Drivers ◽  
Production Variability ◽  
Risk Appetite ◽  
The Board Of Directors ◽  
Exploration And Production ◽  
Degree Of Confidence ◽  
Financial Consequences ◽  
Earnings Targets

The recent extreme volatility in the petroleum markets has introduced a level of volatile earnings for exploration and production companies (E&P) that has not been seen since the Gulf war in 1990–91. Many companies have reduced their hedging activity to increase exposure to rising oil prices and have consequently benefitted considerably. Rapid increases in oil prices historically have been followed by just as rapid decreases. Although oil prices are a key value driver for E&P companies so is exploration and development success, production variability, operational management, and, for companies who do not report in $US, foreign exchange rates. All these value drivers contribute to top line revenues and earnings so hedging oil price in isolation from other value drivers can have adverse financial consequences. The quarterly focus by investors of listed companies on meeting earnings targets/guidance creates the pressure for the board of directors of E&P companies to focus on the degree of earnings stability that is acceptable to the market. This is reflected by a company’s aversion to risk, or risk appetite. The collective management of the value drivers as a portfolio of risks allows companies to understand the potential for earnings variance, or earnings at risk during reporting periods. This, in turn, can provide companies with a degree of confidence in meeting earnings targets and the opportunity for companies to increase their transparency in terms of disclosure/communication of how effectively it is managing core value drivers of the business.

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