Impasse deepens over B.C. LNG tax as Shell warns 7% levy not globally competitive

Financial Post | Business

Royal Dutch Shell Plc is leading an industry pushback against the scope of British Columbia’s proposed tax on liquefied natural gas exports, extending a standoff over fiscal terms for the upstart sector.

The B.C government this week announced a two-tier tax structure for the industry as part of the provincial budget. Under the scheme, profits from LNG plants will be taxed at an initial rate of 1.2%, with rates climbing as high as 7% once companies recover capital costs associated with building the multibillion-dollar export terminals.

The B.C. government said the rates are competitive with rival export jurisdictions in Australia and five U.S. states, including Alaska, Texas and Louisiana.

We’ve been clear that the rate needs to be globally competitive if B.C. is to build an LNG industry

But Shell on Wednesday questioned that assessment, deepening an impasse that has delayed final investment decisions and threatened to snuff out a…

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Chevron find adds to Australia growth

Prometheus Institute

Chevron made a new discovery of natural gas off of Australia’s west coast, adding to other recent exploration successes in a key region for the company.

America’s second-largest energy company after Exxon Mobil said Thursday that its latest gas find was at a water depth of 3,832 feet and more than 6,000 feet below the seafloor.

Chevron announced two other natural gas discoveries off of Australia’s west coast in December, each at water depths of more than 3,000 feet. One well was drilled to nearly two miles below the seafloor.

The company said each of the wells found more than 150 feet of “net gas pay,” a measure of the vertical thickness of the hydrocarbon-bearing area.

Chevron’s latest discovery, Kentish Knock South-1, is located more than 80 miles from shore. It had 246 feet of net gas pay, which is the thickest of the three finds, but not as large…

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Natural Gas Prices will Soar by 2015

Prometheus Institute

Phil Flynn is senior energy analyst and a futures account executive at Chicago-based The Price Futures Group. He is one of the world’s leading energy market analysts and a daily contributor to Fox Business Network, where he provides market updates and analysis. HAI managing editor Sumit Roy recently caught up with Flynn to discuss the latest developments in the energy markets.HardAssetsInvestor: Natural gas has been rallying recently, and now it’s at a seven-month high. Is it solely cold weather that’s driving up prices?Phil Flynn: A lot of it…

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via OilPrice.com Daily News Update http://oilprice.com/Energy/Natural-Gas/Natural-Gas-Prices-will-Soar-by-2015.html

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Australia ‘at the forefront’ of fracking development

Informa Insights

Shale_Tight_Gas_imageAustralia has been posited as the top destination for fracking development, beating stiff competition from a number of international rivals.

New analysis from Lux Research noted that while North America has led the charge before now, the rest of the world is keen to get on board by taking advantage of shale gas and tight oil resources.

The organisation highlighted how well Australia is positioned, claiming that it has the highest market attractiveness and the clearest path to commercial production among competing nations.

“Key factors like existing infrastructure, low population density in resource-rich regions, and a welcoming government positions Australia at the forefront of shale development,” the company stated on its blog.

“China and Argentina are close behind, although the former remains plagued by poor infrastructure, local turf wars, and challenging geology, while the latter retains elements of instability both economically and politically.”

Despite showing some promise, countries such as…

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We are Going to Use More Natural Gas for Trucking, But How Much?

Thinking On Energy

I wanted to see what the latest thinking was on the future of natural gas as a transportation fuel and looked to the new Energy Information Administration’s latest Energy Outlook that was released Dec 16th.   This 30 year forecast is updated annually to factor in new information and trends and certainly the use of natural gas in transportation has evolved a lot just in this past year.

With the launch of a new heavy duty natural gas engine from Cummins that is now going mainstream the demand for both Compressed Natural Gas (CNG) and Liquefied Natural Gas (LNG) is poised to grow.  The question is how much and how fast?

Well looking first at the next five years we can see that the existing use in Automotive and School Bus applications is fairly flat.  The growth is expected to be Transit Bus use where we have a proven workhorse…

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Partners drilling ahead Wheatstone LNG

Offshore Bulletin

Chevron’s $29 bn Wheatstone LNG project in Australia started a three-year development drilling in water depths between 118 and 228 metres. Wheatstone is a two-train project of 8.9 mtpa capacity. Major contractors include Bechtel for the LNG plant, Kencana Petroleum and Bohai Oil Marine Engineering for LNG module construction, EV LNG and Thiess for the LNG and condensate tanks.

via Upstreamonline

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Infographic: Curtis Island GLNG project on track for 2015

Curtis Island is an impressive project. It will be great to see it completed.

Informa Insights

The Curtis Island GLNG project is a US$18.5 billion pioneering enterprise to convert coal seam gas (CSG) into liquefied natural gas (LNG). The joint-venture led by Santos with PETRONAS, Total and KOGAS as partners represents a major investment into a cleaner energy source. This infographic visualises some of the key facts about the project.

Santos-Curtis-Island-GLNG-Project-edit

The Narrows Crossing Tunnel is a main element of the project. Scott Connor, Senior Project Engineer – Narrows Marine Tunnel at Thiess will be giving a presentation about the challenging project at the Australian Tunnelling Conference, to be held on the 21-22 November. He will be joined by Andrew Acton, Deputy Construction Manager, GLNG. For more information and to register for the two day even featuring a number of high-profile international and domestic case studies, please visit the conference website.

Infographic Sources

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