PP100007125

AUST�LIANTHEEnergy ReviewO I L – G A S – E L E C T R I C I T Y – R E N E W A B L E S

australianenergyreview.com.au

ISSUE 81, JUnE 2017

Chevron: GorGon P10news: renewable enerGy P8 a Day in the life P23

A product of

Publications & Exhibitions Australia Pty Ltd

THE Federal Government has introduced legislation changes that will allow for greater investment in carbon capture and storage (CCS) technologies.

On 30 May, Federal Energy minister Josh Frydenberg announced the Turnbull Government would remove legislation prohibiting the Clean Energy Finance Corporation (CEFC) from investing in CCS technologies, which had the potential to reduce carbon emissions by up to 90 per cent.

The $10 billion taxpayer-funded loan facility was established back in 2012 by the former Labor Government to invest in renewable energy, but not nuclear power or CCS technology.

Federal Energy minister Josh Frydenberg visiting the Petra Nova carbon capture and storage facility in Texas in April this year.

$10 billion CEFC could support CCSFunding clean coal

ElizAbETh FAbri

Hydro power key to energy mix

MORE than 17 per cent of Australia’s electricity came from renewable energy in 2016, with hydro power as its largest contributor, according the Clean Energy Council’s latest report.

In 2016, hydro provided 42.3 per cent of the renewable energy total, followed by wind (30.8 per cent), and small-scale solar PV (16 per cent).

The increase in hydro power was largely attributed to heavy rainfall in key catchments, and the repair of the Basslink cable that exported power from Tasmania to the mainland.

Non-hydro power such as solar, wind and bioenergy also delivered 10 per cent of Australia’s power.

(continued on page 9) (continued on page 5)

Tarraleah power station. Image: Hydro Tasmania.

ElizAbETh FAbri

“Support for CCS projeCtS iS ConSiStent

with the CefC’S funCtion

to finanCe auStralia’S

Clean energy SeCtor uSing

finanCial produCtS and

StruCtureS to addreSS

the barrierS inhibiting

inveStment.”

2 JUNE 2017

THE AUST�LIAN ENERGY REVIEWContentS

Renewable Energy 8

NEWS 1

june editionout now

Dr MiChael DolanCsiro teaM leaDer

A Day In The Life p23

INDUSTRY PROFILESCompanies Gearing Up 19

Anchoring & Mooring 20

Drilling Services & Supplies 21

Oil & Gas Consultants 22

SPECIAL FEATURES

Solar in NSW 14

Arrow Energy 17

Chevron: Gorgon 10

news p 8

renewable enerGy

feature p 14

solar in nsw

PUBLISHED BY

ABN 28 112 572 433

GEnERAL MAnAGER

Brad Francis

MAnAGInG EDITOR

Reuben Adams

JOURnALISTS

Cameron Drummond, Elizabeth Fabri

GRAPHIC DESIGnER

Charlotte Lufino

SALES EXECUTIVES

Beej Francis, Chris Foley, Kelly Thompson, John Carter

PRInTER

Rural Press

COnTACT US P: (08) 6314 0300F: (08) 9481 7322160 Beaufort Street, Perth, WA 6000.

PO Box 8023, Perth BC, WA 6849.

E-mail the editor at

editorial@miningoilgas.com.au

For all other emails to staff, the standard convention is, first name (only) @miningoilgas.com.au

The Australian Energy Review is a free publication to all oil and gas operations and oil and gas companies in Australia. Its value is $11 an issue. (Includes GST, postage and handling).The copyright is vested in the Proprietors of The Australian Energy Review; neither whole nor any part of this issue may be reproduced without permission. The views expressed in this publication are not necessarily those of Miningoilgas Pty Ltd and its staff, but are those of the respective author who accepts sole responsibility and liability for them.

nOTICE TO ADVERTISERS: The Trade Practices Act, 1974 came into force on the 1st October 1974. All advertisers and advertising agents are directed to carefully study the provisions of the Act, which contain strict regulations on advertising. It can be an offence for anyone to engage, in trade or commerce, in conduct deemed “misleading or deceptive”. Specifically s53 of the Act contains prohibitions from doing any of the following in connection with the promotion, by any means, of the supply or use of goods or services: (a) falsely represent that goods are of a particular standard, quality, value, grade, composition, style or model or have had a particular history or particular previous use; (b) falsely represent that goods are new; (c) represent that goods or services have sponsorship, approval, performance characteristics, accessories, uses or benefits they do not have; (d) represent that the corporation has a sponsorship, approval or affiliation it does not have; (e) make a false or misleading representation with respect to the price of goods or services; (f) make a false or misleading representation concerning the need for any goods or services; or (g) make a false or misleading representation concerning the existence, exclusion or effect of any condition, warranty, guarantee, right or remedy.

PEnALTIES:For an individual — $10,000 or six months imprisonmentFor a corporation — $50,000. It is not possible for this company to ensure that advertisements published in this newspaper comply with the Act and the responsibility must, therefore, be on the person, company or advertising agency submitting the advertising for publication. In case of doubt, consult your lawyer.

A product of

Publications & Exhibitions Australia Pty Ltd

A product of

Publications & Exhibitions Australia Pty Ltd

4 JUNE 2017

THE AUST�LIAN ENERGY REVIEWnewS

in brief

Ichthys CPF arrives in Australia

THE INPEX Ichthys project central processing facility (CPF) has arrived in Australian waters and is ready for commissioning, after a series of project delays.

The 120,000 tonne facility reached its new home off the WA coast on 29 May, after a 34 days journey from manufacturing yards in South Korea.

“The safe completion of the 5600 kilometre tow of the Ichthys Explorer from South Korea to the Ichthys Field, located 450 kilometres north of Broome, is another significant milestone for the Ichthys LNG Project,” Ichthys project managing director Louis Bon said.

“After the Ichthys Explorer is safely moored in the 250-metre deep waters of the Ichthys Field, hook up and commissioning will begin.”

oFFshorE

Waitsia-3 drilling begins

AUSTRALIAN energy company AWE has commenced a seven week drilling operation at its Waitsia-3 appraisal well in the Perth Basin.

The Waitsia-3 well was the first of two wells planned to be drilled in 2017 to assess the gas potential of a southern extension of the Waitsia field.

“Waitsia-3 and Waitsia-4 will be the last appraisal wells drilled prior to a Final Investment Decision (FID) for the Waitsia Stage 2 full field development,” AWE chief executive and managing director David Biggs said.

“Both wells are expected to be completed as production wells if results are positive.”

WA

SYDNEY-based Oil Search has signed an agreement to acquire a 30 per cent interest in ExxonMobil on the onshore Papuan Gulf Basin in PNG.

Under the agreement, Oil Search would complete a seismic acquisition program over the five licenses in 2017 and early 2018.

Oil Search managing director Peter Botten said the proposed farm-in to these licenses enhanced the company’s exploration portfolio in this area.

“We are delighted to be partnering with ExxonMobil in this exciting play fairway, building on our existing relationship within the PNG LNG and Papua LNG projects, and look forward to commencing an active exploration program.”

Oil Search enters PNG farm-inPNG

ElizAbETh FAbri

ElizAbETh FAbri

ORIGIN Energy has inked an agreement to sell its 292km Darling Downs pipeline network (DDPN) in Queensland to Jemena for $392 million as part of the company’s corporate divestment strategy.

The natural gas pipeline transported gas from the South-East Queensland fields to the Wallumbilla gas hub, Origin’s 630MW Darling Downs Power Station, and to APLNG’s export pipeline.

Origin chief executive Frank Calabria said the sale brought the company offloaded asset total to $1 billion; $200 million beyond the $800 million target announced in September 2015.

“The sale of Darling Downs Pipeline Network, which represents a 16.9x FY2018 EBITDA multiple to Origin, is scheduled to be completed by 30 June 2017,” Mr Calabria said.

“The sale culminates our announced asset divestment program, the net proceeds of which will be used to reduce debt.

“We’re on track to achieve our target of adjusted net debt of well below $9 billion by 30 June 2017.”

Jemena managing director Paul Adams said the acquisition was the “crucial next step” in delivering the company’s Northern Growth Strategy, which included the

Northern Gas Pipeline currently under construction.

“This is a strategic investment for Jemena which leverages the DDPN’s

connection with our Queensland Gas Pipeline to allow us to grow scale in this key market at a crucial time for the Australian energy sector,” Mr Adams said.

OIL and gas companies must collaborate more effectively to solve the industry’s leading problems —from reducing costs, improving safety, to implementing new technologies— according to oil and gas heads at this year’s APPEA Conference and Exhibition.

The annual conference, held in Perth on 14-17 May, attracted more than 3000 delegates from 30 countries, with presentations from various officials including Federal Resources minister Matt Canavan and executives from national and global companies Woodside, Shell, BP, Senex, BHP, and ExxonMobil.

Speaking at day one, Deloitte national oil and gas leader Bernadette Cullinane said collaboration was a vehicle to achieving greater success, but a “lack of trust” and “misalignment of expectations” between oil and gas operators and service companies were the primary factors that created roadblocks.

Deloitte’s report Committed to change: Driving true industry collaboration, surveyed 96 individuals within the sector and found the buyer-supplier tension to be an issue that would need to be taken more seriously to increase the chances of effective partnerships.

“The majority of operators and service companies in Australia have limited history of working together on operational oil and gas assets and less of a track record in accumulating trustworthiness and institutionalising collaboration,” the report stated.

“A respondent from a major Australian operator explained the biggest challenge in overcoming these factors is ‘shifting the mindset of not wanting to share’.

“When asked whether respondents agreed or disagreed with the statement ‘Many business processes which are considered company confidential should be standardised to facilitate industry collaboration’, the majority of respondents from both operators and services companies

agreed; this indicates that this mindset may already be starting to shift.”

Also touching on the topic at day three was Senex managing director Ian Davies, BP Developments Australia managing director Claire Fitzpatrick, and ExxonMobil Australia chairman Richard Owen.

“Partnering is key,” Mr Davies said.“The magic ingredient as a general

rule for businesses like us is partnering effectively, whether it is JVs, farm ins, farm outs or partnering with service industries where they have expertise that we don’t have, or don’t know how to apply effectively to review a problem.

“There are very few problems that probably haven’t been dealt with in the world somewhere and being able to tap into that global network and national network is extremely important.”

Ms Fitzpatrick said she didn’t view collaboration as a “them” versus “us”

scenario, and there should be greater dialogue between partners.

“It’s about what the service companies see [what] we are doing that’s adding to our problem and driving cost up that we may be completely oblivious to, but [this] actually requires us to enter in that dialogue to understand and be willing to listen to that,” Ms Fitzpatrick said.

Mr Owen said it was an area where there needed to be more trust to “match problems and solutions”, however said competition was still integral to businesses success.

“Collaboration is particularly helpful if you’re solving a specific issue, but I think when you’re looking to innovate and take a leap forward in technology, competition is helpful too.

“I think competition helps drive a lot of innovation, I think we need to make sure we keep these things in perspective and balanced.”

Origin sells Darling pipeline asset

Calls for greater collaboration

origin Energy will sell the pipeline for $392 million. Image: Origin Energy.

A panel discussion at APPEA 2017 featuring bP, Exxon Mobil and senex executives.

“there are very few problemS that probably haven’t been dealt with in the world

Somewhere and being able to tap into that global network and national network iS

extremely important.”

5JUNE 2017

THE AUST�LIAN ENERGY REVIEW newS

Cliff head’s Alpha offshore oil platform.

Triangle buys out Cliff Head projectPERTH-based Triangle Energy Global has bought out Roc Oil’s 42.5 per cent share and operatorship of the Cliff Head oil project, located in the offshore Perth Basin.

A payment of $US5 million was made to Roc Oil for its stake in the project, giving Triangle a majority 78.75 per cent interest in the oil field.

The Cliff Head facilities included the Alpha offshore platform and Arrowsmith onshore stabilisation plant.

“Cliff Head’s facilities are the only offshore and operating onshore infrastructure in the Perth Basin and are therefore important for any development in the surrounding area,”

Triangle director Darren Bromley said.“We see a great opportunity to progress

exploration of nearby appraisal targets and the larger offshore Perth Basin while maintaining strong cash flow from our current position.

“This acquisition, together with out 30 per cent farm-in interest in the TP/15 joint venture with Norwest Energy to drill the neighbouring 160mmbl Xanadu-1 prospect, provides Triangle immediate exposure to exploration upside along with additional strong exploration targets within the Cliff Head oil field.”

Cliff Head currently produced about 1300 barrels of oil per day (bopd) gross through the Arrowsmith facility, which has a processing capacity of up to 15,000bopd.

CAMEroN DruMMoND

Mr Frydenberg said the decision to change the legislation was not only consistent with the Government’s “technology-neutral approach” but would also enhance energy and job security, and better environment outcomes.

“CCS is a proven technology being deployed globally with 17 large-scale commercial CCS facilities already in operation storing around 30 million tonnes per annum of carbon dioxide,” Mr Frydenberg said.

“The CEFC’s ability to invest in CCS technologies will complement other low emissions investment by the Federal Government including more than $3 billion worth of wind, solar and storage projects.”

Mr Frydenberg said access to finance had been one of the main road blocks that prevented CCS projects from being developed in Australia.

“We’ve had nine coal fired power stations that have closed over the last five to six years, often with very little notice periods, and Hazelwood was a good case and point,” he said.

“Without the level of investment certainty as to what the regulatory environment will be long term, we haven’t seen a coal fired power station built in Australia since Kogan Creek in Queensland in 2007, and we haven’t seen a gas fired power station built since Mortlake in 2010.”

Since 2009, the Government had sunk more than $590 million worth of research and development into High Efficiency Low Emissions coal fired power stations and CCS technology.

Australia did not yet have a modern High Efficiency Low Emissions coal fired power station running, or a station with CCS.

Mr Frydenberg said this money went towards a range of initiatives, including pilot projects across the country.

“These pilot projects and research and development programs have helped set the scene for what later this year will be Australia's first and one of the world's largest CCS commercial-scale projects at the Gorgon gas field off the coast of Western Australia,” he said.

“Later this year it is expected to start injecting up to four million tonnes of CO2 per year into the Dupuy Formation two kilometres below the surface.”

While the news received opposition from environmental groups, it was welcomed by a large number of industry bodies including the Australian Petroleum Production & Exploration Association (APPEA).

APPEA chief executive Malcolm Roberts said access to CEFC financing would help

overcome capital and financing obstacles for CCS projects.

“CCS is seen as one of the pathways to the continued use of fossil fuels in a low-carbon economy,” Dr Roberts said.

“Support for CCS projects is consistent with the CEFC’s function to finance Australia’s clean energy sector using financial products and structures to address the barriers inhibiting investment.”

Minerals Council of Australia executive director coal Greg Evans said it was clear Australians wanted affordable power with 24/7 availability, and base load coal was a way to achieve this, and now had a low emissions pathway.

“CCS is very much part of the future here and internationally if we are to maintain affordable energy and other key industries including steel making and cement production,” Mr Evans said.

Gov looks to fund clean coal

“CCS iS a proven teChnology being

deployed globally with 17 large-SCale

CommerCial CCS faCilitieS already in

operation Storing around 30 million

tonneS per annum of Carbon dioxide.”

(continued from page 1)

6 JUNE 2017

THE AUST�LIAN ENERGY REVIEWnewS

GAS supply to the east coast is set to get a boost with Arrow Energy announcing it will begin an expansion of its Tipton gas project in QLD’s Surat Basin.

Arrow said it would undertake the front-end engineering design (FEED) phase for a major expansion of Tipton, 30km west of Darby.

Arrow Energy chief executive Qian Mingyang said the project involved a significant upgrade of existing facilities, and would more than double production capacity to more than 80 terajoules per day (TJ/d).

“This project continues the development of the Arrow resource which will see more gas in the market,” Mr Qian said.

The decision followed a recent $600m-plus investment by Arrow in its Surat Basin infrastructure, comprised of a $500m expansion to its Daandine project (commissioned in late 2016) and its more than $100m Produce the Limit (PtL) project to expand capacity at both the Daandine and Tipton fields.

“The planned expansion of Arrow’s Tipton operations is expected to involve 90 new wells in the initial phase and another 180 wells over the next 25 years - along with new gathering lines, an upgraded water treatment facility and four new compressors,” Mr Qian said.

"The PtL project is well under way, and will enable Arrow to run existing compression facilities to their maximum design limits, increasing our current Surat production by up to 30 per cent.”

Together, the three expansion projects would bring Arrow’s Surat gas production to

more than 170 TJ/d, for both domestic and export use.

Mr Qian said that after FEED was completed, shareholders would consider a final investment decision.

“In addition to these expansion activities, collaboration with industry proponents would be important in bringing Arrow’s sizeable gas

reserves into the east coast gas market.“I am expecting that we will reach

agreement on a path to market for the majority of Arrow’s Surat Basin gas reserves later this year.”

APPEA QLD director Rhys Turner said Arrow’s announcement once again showed that Queensland-based operators continue

to do the heavy lifting in getting more gas to market.

“This initiative – coupled with the recent announcement by QGC, a Shell joint venture, that it will soon start drilling up to 161 additional wells as part of Project Ruby – shows the industry in Queensland is getting on with the job,” Mr Turner said.

WA-based engineering firm Monadelphous Group has been awarded a major, long-term offshore maintenance contract for INPEX’s Ichthys liquefied natural gas (LNG) project.

The contract was for an initial six year period with a further two year extension option at Ichthys in the Browse Basin,

450km from Broome, WA.Under the contract, Monadelphous

would provide operational, campaign and shutdown maintenance services and brownfield projects implementation associated with Ichthys’ processing facility and floating production storage and offloading facility.

Monadelphous managing director Rob Velletri said the company was delighted to be awarded such a significant maintenance

contract by INPEX. “The contract continues to strengthen

our position as a major service provider of offshore maintenance services,” Mr Velletri said.

“We look forward to further strengthening our relationship with INPEX Operations Australia and working together to create sustainable economic and social development opportunities for local people, businesses and communities.”

Arrow expands Surat Basin supplyCAMEroN DruMMoND

CAMEroN DruMMoND

ElizAbETh FAbri

Monadelphous secures six-year INPEX contract

SANTOS chairman Peter Coates will step down from the role in the coming months as part of a board renewal.

The announcement, made at the oil and gas giant’s AGM in May, came as a surprise to shareholders with Mr Coates up for re-election on the day.

“Progressive renewal of the board membership must be designed and timed to ensure a continuing balance of first-hand experience and fresh expertise and thinking,” Mr Coates said.

“In that regard, four new directors have been appointed since 2014.

“This brings me to the subject of chairman succession.

“The process of identifying my successor is already underway.”

A member of the board since 2008, Mr Coates’ was first appointed chairman from December 2009 to May 2013, and was re-elected in April 2015 and later appointed executive chairman from August 2015 to January 2016.

Mr Coates said while he sought support for re-election, he wanted to make it clear to shareholders it was his intention to step down as soon as a new chair had been found.

“Thank you again for your support and patience as we have repositioned Santos,” he said.

“The company’s strengthened balance sheet and lower-cost operating model are key to the new operating strategy that [chief executive] Kevin [Gallagher] is implementing.”

Santos chair to step down

Arrow’s expansion works are expected to up its gas production to more than 170 terajoules a day. Image: Arrow Energy.

The Ichthys LNG project floats the world’s largest semi-submersible platform. Image: INPEX.

“i am expeCting that we will reaCh agreement on a path to market for the majority of arrow’S Surat baSin gaS reServeS later thiS year.”

arrow feature page 17

http://www.streamlight.com

8 JUNE 2017

THE AUST�LIAN ENERGY REVIEWnewS: renewable energy

in brief

QLD becomes solar State

ROOFTOP solar has become Queensland’s largest power provider with 438,000 residential rooftops now generating 1706MW of power, overtaking the 1680 megawatt (MW) Gladstone power station.

Energy minister Mark Bailey said the State now had the highest installed capacity of rooftop solar panels in Australia and one of the highest penetration rates in the world.

“We’re turning the Sunshine State into the Solar State and we’re well on our way to meeting our target for one million Queensland rooftops with solar or 3000 megawatts of total solar by 2020,” Mr Bailey said.

QlD

Concentrated solar tech assessed

RENEWABLE energy companies are being called on by the Australian Renewable Energy Agency (ARENA) to provide information on how concentrated sunlight could generate reliable and affordable energy for national grids in the future.

Concentrated solar thermal (CST) had not yet reached a point where it was competitive with other forms of new-build power generation in Australia.

“The benefits of CST will become increasingly important as more renewables enter our grid, particularly in regions like South Australia that already have high levels of wind and solar PV generation,” ARENA chief executive Ivor Frischknecht said.

Submissions are due by 31 July 2017 and can cover all types of CST technology and project sizes.

NATioNAl

AGL Energy has launched a virtual power trading trial using blockchain technology that will assess how households and businesses can share and trade power.

The desktop trial would include homes in Melbourne, which utilise both solar panels and batteries to store energy.

Partly funded by ARENA, AGL would also be partnering with IBM Australia and Marchment Hill Consulting on the project.

“This initial trial will help understand if there is value in peer-to-peer markets and how blockchain technology could facilitate this market in a cost-effective way,” ARENA stated.

The trial is now underway and due for completion in July.

AGL begins power trading trialViC

ElizAbETh FAbri

CAMEroN DruMMoND

Printed solar tech an Australian first

THE University of Newcastle (UON) has unveiled Australia’s first printed solar demonstration site to test its printed solar technology, one of only three comparable sites worldwide.

UON Professor Paul Dastoor said the material could be rapidly manufactured, enabling accelerated deployment into the marketplace.

Pioneered by Professor Dastoor’s UON team, the material is made by printing an advanced electronic ink onto paper thin, clear laminated sheets using conventional printing presses.

“There are just three demonstration sites

at this scale that we know of anywhere in the world, so Australia has joined quite an elite group of global leaders poised to make this technology a commercial reality,” Professor Dastoor said.

“No other renewable energy solution can be manufactured as quickly.

“On our lab-scale printer we can easily produce hundreds of metres of material per day, on a commercial-scale printer this would increase to kilometres.

“If you had just ten of these printers operating around the clock we could print enough material to deliver power to 1000 homes per day.

“The low-cost and speed at which this technology can be deployed is exciting, particularly in the current Australian energy

context where we need to find solutions, and quickly, to reduce demand on base-load power.”

Professor Dastoor said the demonstration site enabled final phase testing and modifications of the system before the renewable energy technology could be made available to the public.

“This installation brings us closer than we have ever been to making this technology a reality [and] will help to determine the lifespan of the material and provide half-hourly feedback on the performance of the system,” he said.

The material could deliver a new ‘functional printing’ revenue stream for the printing industry – the second largest manufacturing industry in Australia.

THE Australian Renewable Energy Agency (ARENA) and the Australian Energy Market Operator (AEMO) have joined forces to trial the use of financial incentives to energy users who reduce their electricity use in peak demand.

Scheduled to begin next summer, the $22.5 million, three-year trial would be open to South Australian and Victorian residents in efforts to manage electricity supply and avoid future blackouts.

AEMO chief executive Audrey Zibelman said the pilot program would help the electricity system manage peak demand in real-time, without the need for new fossil fuel generation, and aimed to secure 100 megawatts of demand by next summer.

“Together with ARENA, we will be working to have a pilot program up and running by next summer, in time for extreme hot days when energy use peaks,” Ms Zibelman said.

“Demand response programs are already commonly used in other countries.

“From Texas to Taiwan, demand response has been proven to be a cost-effective way to manage demand at peak times and acts as a contingency to

avoid disruptive power outages.”ARENA chief executive Ivor

Frischknecht said demand response was an efficient way of supporting integration of renewable energy, without

compromising security and reliability.“We need to find new, smarter ways of

coping with spikes in demand and volatility as we move towards an electricity system with more variable renewable energy supply,” Mr Frischknecht said.

“Instead of building a power plant that is only switched on a few hours or days a year, demand response will allow us to reduce energy consumption during peak demand while also reducing energy costs and emissions for consumers.

“It’s a win-win.”Energy Efficiency Council chief

executive Luke Menzel described the trial as a “breakthrough moment” for the energy industry.

"This approach is common in energy markets around the world, but has long been underutilised in Australia's National Energy Market (NEM), because the right structures and incentives for aggregators to do this work haven't been put in place," Mr Menzel said.

"While the focus of this pilot is improving system reliability in extreme circumstances, it’s a step towards broader utilisation of demand response to lower costs across the electricity system by helping to meet critical peak demand, increasing competition during periods of tight demand-supply balance, and facilitating higher penetration of renewables into the grid.

"Demand response experts look forward to working with AEMO and ARENA on the successful rollout of this program.”

Printed solar panels could be a game changer for providing affordable solar power. Image: University of Newcastle.

Trial to manage peak demand

“inStead of building a power plant that

iS only SwitChed on a few hourS or

dayS a year, demand reSponSe will allow uS to reduCe energy

ConSumption during peak demand while

alSo reduCing energy CoStS and emiSSionS for

ConSumerS.”

“if you had juSt ten of theSe printerS

operating around the

CloCk we Could print

enough material

to deliver power to

1000 homeS per day.”

Clean Energy Council chief executive Kane Thornton said the electricity generated from renewables was the highest proportion seen this century and put Australia on track to deliver the 2020 renewable energy target (RET).

“The changes that are happening across the country right now are extraordinary,” Mr Thornton said.

“Renewable energy is now the cheapest kind of new power generation that can be built today – less than both new coal and new gas-fired power plants.

“The price of gas in particular has skyrocketed.”

Mr Thornton said in 2016 total investment in large-scale renewable energy was $2.56 billion, and in the first five months of 2017 this had more than doubled with $5.2 billion worth of projects securing finance.

“Employment figures are likely to increase substantially in 2017 with more than 35 large-scale projects already under construction or starting this year, adding up to more than $7.5 billion in investment and more than 4100 additional direct jobs,” he said.

Hydro key to energy mix(continued from page 1)

renewable energy comprised 17.3 per cent of Australia’s annual electricity generation in 2016, up from 14.6 per cent in 2015.

10 SPECIAL FEATURESChevron: GorGon

JUne 2017THE AUST�LIAN ENERGY REVIEW

Ramp up at the Gorgon Project has not been trouble free, but Train 3 of the 15.6 million tonne per annum “nation defining” development is now up and running.

Into full productionFOR the first quarter of 2017, Chevron Corporation reported earnings of $US2.7 billion, compared with a loss of $US725 million in the respective 2016 period.

Sales and other operating revenues in Q1 2017 were $US32bn, compared to $US23bn the year before.

This was influenced by a $600m bump from the sale of an upstream asset and reduced foreign currency effects, which reduced Q1 2017 earnings by $241m compared with $319m a year earlier.

“First quarter earnings and cash flow improved significantly from a year ago,” Chevron chairman and chief executive John Watson said.

“We benefitted from increasing crude oil prices and ongoing efficiencies being implemented across the company.”

Chevron also continued to make “good progress” on reducing its spend, slashing operating expenses and capital expenditure by about 14 per cent and 30 per cent respectively, from the same period in 2016.

“We started up several new projects and have all three trains at Gorgon online. We also progressed our asset sales program. The combination of these actions contributed to a cash positive first quarter,” Mr Watson said.

“Overall net oil-equivalent production in the first quarter increased 3 per cent compared to the 2016 full year and we are on track to meet the 4 [per cent to] 9 per cent growth goal for 2017 before the effect of asset sales.”

milestones

The Gorgon liquefied natural gas (LNG) project is one of the world's largest natural gas

projects, with a total production capacity of about 2.6 billion cubic feet of natural gas and 20,000 barrels of condensate per day.

During construction and operation, the project has spent more than $34bn on Australian goods and services, awarded more than 700 contracts to Australian companies, and directly employed more than 10,000 workers.

Furthermore, the project is helping secure

domestic supply for WA.In December last year, Chevron Australia

announced the start of domestic gas supplies to the WA market from Gorgon, comprising an initial 150 terajoules per day (Tj/d) of gas supplied to foundation customer Synergy and an industry customer under long-term contracts.

The Gorgon project is the most significant entry into the WA domestic gas market for almost 30 years.

At full capacity and subject to market demand, Gorgon could supply up to 300 Tj/d of gas to the WA market; equivalent to generating enough electricity for 2.5 million households.

The three train, 15.6 million tonne per annum (mtpa) LNG plant on Barrow Island reached its first production milestone on 9 March 2016.

In late March 2017 LNG production started from Gorgon Train 3; almost eight years on from the final investment decision made on the project in 2009.

“This is a key milestone for the Gorgon joint venture participants, our workforce, customers, government and all those associated with the project over its lifetime should be extremely proud,” Chevron Australia managing director Nigel Hearne said.

rEubEN ADAMs

“our projeCt’S two gigantiC floating faCilitieS will be loCated in the iChthyS gaS- CondenSate field, about 220 kilometreS offShore wa, for 40 yearS of ContinuouS operation, Setting new benChmarkS for durability.”

(continued on page 12)

All images: Chevron.

“there’S a lot to be proud of — auStralia

iS demonStrating itS ability to

bring together the teChnology,

innovation and human ingenuity to

deliver world-ClaSS projeCtS on a SCale never Seen before.”

The Gorgon Project is located on barrow island, around 60 kilometres off the northwest coast of WA.

11JUNE 2017

THE AUST�LIAN ENERGY REVIEW Chevron: gorgon

12 JUNE 2017

THE AUST�LIAN ENERGY REVIEWChevron: GorGon

PRITCHARD Francis has undertaken the structural, civil and lead consulting for the design and construction of permanent administration buildings on Barrow Island for Chevron’s Gorgon LNG Project.

Standing proud on the ‘A’ class reserve site, the buildings include a large workshop, large warehouse, fire station, transformer building and numerous smaller service buildings, which altogether included about 33,000sqm in structures and 21,000sqm of external pavement.

The company included precast

structural footings in the details, and had to work with existing rock ground conditions, compared with other sites around the Northwest corridor which is largely made up of Pindan soils.

All structures have been designed to withstand Region D cyclonic winds as well as accidental blast loading from a vapour cloud ignition.

The logistical requirements of building on a remote island as well as the strict environmental requirements have been important factors in the design of the structures and civil works.

Construction complete at Barrow admin complex

An example of a Pritchard Francis blast rated design.

(continued from page 10)

“Along with our partners, we are delighted with the significant economic benefits generated by the Gorgon project.”

But ramp up has not been without its issues.

On 16 May it was plagued by problems once again, with one of the three processing trains down for about a month due to a problem with a “flow measurement device”, according to the company.

“Production on Gorgon Train 1 was stopped on 12 May due to a failure of a flow measurement device,” a Chevron spokesperson told The West Australian.

“Train 1 is expected to be down approximately one month for this replacement and we will take this opportunity to perform other routine maintenance. Trains 2 and 3 are running normally and we are continuing to ship cargoes.”

Yet Chevron has a long-term view on Gorgon, with a life that is expected to span more than 40 years.

In an article published in The West Australian in April this year, Mr Hearne called the Chevron-led Gorgon project a 21st-century nation-defining development delivering reliable natural gas to WA, and across Asia, for generations to come.

“There’s a lot to be proud of — Australia is demonstrating its ability to bring together the technology, innovation and human ingenuity to deliver world-class projects on a scale never seen before,” he said.

“The project has one of the biggest subsea installations in the world, weighing 230,000 tonnes, 500 miles of pipeline placed onshore and offshore, and as much steel in the plant as four Sydney Harbour Bridges.

“Since the Gorgon joint venture

participants farewelled the maiden cargo of Gorgon LNG in March last year, more than 60 cargoes have been delivered to customers in Asia hungry for cleaner burning natural gas.

“To put this in perspective — one cargo alone has enough energy to supply about 80,000 Japanese homes for one year.”

Across the 40-year life of the project, Chevron expects it to continue delivering far-reaching benefits for the local economy through reliable natural gas supplies, jobs, community investment and Government revenues.

creating an investment climate

Mr Hearne expressed concern about the pressure placed on Government to reform

the Petroleum Resources Rent Tax (PRRT), which could negatively affect future investment.

“Gorgon will continue to pay a dividend to Australia for generations to come and is the result of Australia’s energy policy creating an investment climate that attracted more than $200 billion investment in Australian LNG,” he said.

“Good policy supported these record levels of investment and we need to ensure future policy continues to do so.

Of concern to the industry is pressure being placed on the Government by special interest groups asking for policy interventions on issues such as the PRRT.

“Ill-informed policy decisions can have unintended consequences and can

retrospectively have an impact on project economics and future investment as well as on Australia’s global competitiveness,” Mr Hearne said.

His comments came as the Federal Government undertakes a review of the tax paid by companies with massive oil and gas reserves on the North-West Shelf, and after an extension of the Senate inquiry into corporate tax avoidance with a specific focus on offshore oil and gas.

Also in April, a Federal Court unanimously dismissed the appeal against an Australian Tax Office (ATO) ruling that Chevron used a high interest, $US2.5bn loan from a Chevron subsidiary in Delaware to Chevron Australia, in order to shift profits offshore and avoid tax on its Australian income.

This decision could cost Chevron more than $300m, and have implications for similar settlements the ATO is pursuing.

“As recognised by the trial court in the dispute, the financing is a legitimate business arrangement and the parties differ only in their assessments of the appropriate interest rate to apply,” Chevron said in response.

On 19 May, Chevron decided to seek special leave to appeal to the High Court of Australia in relation to the financing dispute.

“Chevron Australia pays a substantial amount of tax in Australia, including royalties, payroll tax, fringe benefits tax, excise and interest withholding tax. Since 2009, we’ve paid almost $4 billion in federal and state taxes and royalties,” it stated.

“We are one of Australia’s largest investors and employers. In addition to tax payments, Chevron will continue to deliver substantial economic benefits for decades to come.”

Train 3 was ramped up in March this year.

“the projeCt Could Create about 1300 jobS during the initial ConStruCtion phaSe and around 200 ongoing jobS, many of whiCh would be loCally baSed.”

14 JUNE 2017

THE AUST�LIAN ENERGY REVIEWSolar in nSw

The future for NSW solar is shining bright. In the next few years eight new projects will come online, while a further 12 projects in the planning pipeline are set to generate more than 1000MW of additional solar capacity.

The solar stateRENEWABLE energy, particularly solar, is increasingly becoming a key player in the NSW energy mix.

Over the next few years, the State will work towards meeting a renewable energy target of 23.5 per cent; a goal it endeavours to achieve by 2020 through a series of new solar projects under construction.

While the State currently boasted three large-scale operating solar farms, additional projects were at various stages post-approval, and a dozen more were expected to come online once regulatory approvals were granted.

The State’s existing solar PV projects included AGL’s 102MW Nyngan project and 53MW Broken Hill solar farm, along with FRV’s 56MW Moree project.

Nyngan was the largest solar farm in the southern hemisphere, while Moree was Australia’s second largest and first to incorporate a new technology that tracked the sun.

NSW Energy minister Don Harwin said the State was showing national leadership in large-scale solar, with 210 megawatts generated between Moree, Broken Hill and Nyngan; enough energy to power 75,000 homes.

“NSW has the largest volume of capacity from renewable projects either completed or under construction this year alone,” Mr Harwin said.

Regional NSW had been a preferred destination for solar investment for some time because of its warm climate.

“The recently opened Moree Solar Farm is a good example of this, constructed in one of the hottest towns in NSW,” he said.

“While we anticipate strong investment in renewables for NSW under the renewable energy target this year, it highlights the pressing need for national energy market reform to unlock investment, including in technologies like battery storage.”

projects in development

The NSW solar industry has undergone a

massive transition in the last five years.Since 2011, the State Government had

green-lit 11 solar projects that would collectively generate 660 MW of energy; including the three projects already in operation.

This year, the remaining eight projects had made significant progress, with construction off to a flying start at Neoen’s three projects in Parkes, Griffith and Dubbo.

ARENA chief executive Ivor Frischknecht said these plants would cost about $2 per watt of capacity; one third cheaper than AGL’s plants in Nyngan and Broken Hill, which cost $2.8 per watt in 2014.

The Neoen projects received $16 million in funding through ARENA and $150 million in debt financing from the Clean Energy Finance Corporation (CEFC).

Mr Frischknecht described Neoen’s NSW projects as “world-class” featuring cutting-edge technology similar to the panels at Moree, which followed the sun as it travelled across the sky.

“By using solar panels that track the sun, the plants will maintain a higher energy output for more of the day,” Mr Frischknecht said.

“The new Neoen plants will also boost regional NSW economies, creating an estimated 250 jobs during construction, mostly in the local regions.

“Five NSW based plants have won support through ARENA’s funding round and will together almost double the amount of big solar in the State.”

Construction at the three farms was expected to be completed by the year’s end.

In addition, Infigen’s Capital solar farm in Bungendore NSW, and Bogan River solar farm in Nyngan had also been approved but had not yet entered construction.

On 26 March, First Solar announced it had reached financial closure for its 48.5MW Manildra solar farm which was scheduled to begin construction in the first half of 2017 and be complete by 2018.

Pre-construction works had also begun at Riverina Solar Farm in Yoogali; construction at White Rock Solar farm in

Matheson was expected to begin at some point this year; and plans for Goonumbla Solar Farm in Parkes also progressed.

Furthermore, in March the State Government announced 12 new solar power projects were in the planning stage but not yet approved, which included Sunraysia solar farm; Gilgandra; Narrabri; Metz; Hillston; Limondale; Nevertire; Walgett; Hay Solar; Coleambally; Beryl Solar; and Jemalong.

The 12 projects would add a further 1000MW of power to the State, and were currently being assessed on their economic, environmental and social impact value.

The 200MW Sunraysia Solar Farm Two was particularly of interest with potential to produce double the solar energy of Nyngan, and power for 120,000 homes.

Sunraysia would also be the first solar photovoltaic plant in the State to use batteries to store energy.

“If approved, these proposals could generate sustainable power and local jobs for towns such as Gilgandra, Hillston, Narrabri, Armidale, Coleambally, Gulgong, Walgett, Jemalong, Balranald, Nyngan and Hay,” Mr Harwin said.

“The Nyngan solar farm alone created 250 construction jobs and provided $330 million in investment.

“Strengthening the State’s energy security, and developing economic opportunities and boosting jobs in our regions are priorities for this government.

“When we make this happen through renewable energy projects it’s a win-win for NSW.”

rooftop solar

Interest in rooftop solar photovoltaic (PV) systems had also amplified in recent years.

“More than 350,000 households and businesses in NSW now have rooftop solar,” Mr Harwin said.

“With technologies improving and bringing costs down, the option of installing solar is becoming more appealing.

ElizAbETh FAbri

broken hill solar Farm. Image: AGL.

(continued on page 16)

“nSw haS the largeSt volume

of CapaCity from renewable projeCtS

either Completed or under

ConStruCtion thiS year alone.”

Images: NSW Government.

15JUNE 2017

THE AUST�LIAN ENERGY REVIEW Solar in nSw

16 JUNE 2017

THE AUST�LIAN ENERGY REVIEWSolar in nSw

Leaders in solar panel cleaning and maintenanceGREEN UNICORNS is a cleaning and maintenance service provider specializing in Solar PV systems.

It offers solar installers, business owners and residents who have embraced solar technology a comprehensive maintenance service like no other.

The company’s services ensure solar systems provide the maximum output for its full lifetime.

We believe in getting the best return on investment for solar customers, as well as reducing warranty concerns for installers while rewarding them financially via our partnership program.

Experts like the National Renewable Lab (NREL) report that dirty solar panels can lose 25 per cent of their output, and we've recorded instances of even greater savings.

Over time, this compromise in generation can lead to significant decreases in systems savings - which is probably why customers went solar in the first place.

Through Green Unicorns' state-of-the-art system, not only will solar system owners recover lost savings from generation, but can also help extend the life of the system; protect manufacturer warranty; ensure optimum performance with thorough maintenance checks that comes with every cleaning; and save time and avoid risks of injury or damaging panels by utilising Green Unicorn’s trained technicians.

Unlike other businesses that offer solar panel cleaning as a service option, Green Unicorns is solely dedicated to Solar PV.

This allows the company to provide specialised training for its technicians which translates to expert, quality care for its customers.

Green Unicorns technicians are trained, licensed, and insured, as well as able to accommodate a wide variety of system applications, including; residential, commercial, agricultural, and utility scales,

carports, and roof or ground-mounted systems.

The technicians are also highly efficient, being able to clean 10 panels in less than five minutes and use the company’s web-based

app to efficiently navigate between jobs and provide real-time updates to customers via text message.

More information can be found at:www.greenunicorns.com.

(continued from page 14)

“Consumers might also be attracted to rooftop solar following an IPART report just released that more than doubles the previous rate for what consumers should get for feeding solar into the grid.”

The Independent Pricing and Regulatory Tribunal (IPART) draft determination of a fair value for solar proposed an increase of between 11.6 and 14.6 cents per kilowatt hour from between 5.5 and 7.2 c/kWh.

“This will encourage more people in NSW to look at installing solar,” he said.

“The tariff is not subsidised by other energy users so it won’t increase power prices.

“It will help deliver lower energy bills for NSW’s solar households and businesses.”

The large influx in rooftop solar was partly attributed to the former Labor Government’s Solar Bonus Scheme that came to an end on 31 December 2016.

Mr Harwin said while the scheme had boosted the number of installations by 146,000, it came at a high price to

consumers.“The previous Labor government

implemented the premium feed-in tariff of 60 cents of all output of systems without having modelling uptake, and this lead to a blow-out in the expected cost of the scheme,” he said.

“Due to that, the NSW Government had to intervene to stop consumers facing bill shock, particularly those who did not have solar panels.

“Now that the scheme has expired, NSW Government is working to ensure that scheme customers are able to make greatest use of their panels by transitioning to net metering.

“The Government reaches out regularly to retailers and has written on three occasions to Solar Bonus Scheme participants over a period of months to encourage smart meter take-up among those customers.”

As of 1 April this year, about 50,000 customers had installed smart meters.

Mr Harwin said the government was helping expand access to rooftop solar further through its Home Energy Action Program.

“The Home Energy Action Program is providing $26.8 million for a new energy efficiency assistance to help vulnerable households reduce their energy bills,” he said.

a renewables future

Looking forward, Mr Harwin said his top priorities as Energy minister were to ensure the people of NSW had access to secure, reliable and affordable power.

“Through strengthening energy security this Government is developing economic opportunities and boosting jobs in our regions,” he said.

“Over the past six years the share of renewable energy generation in NSW's supply mix has more than doubled.

“Our latest figures show that renewables

contributed 14 per cent to the state’s electricity energy mix.

“With more projects on their way, including 12 solar projects in the planning pipeline, we expect to reach the national renewable energy target of 23.5 per cent by 2020.”

Mr Harwin said renewable energy was “integral” to the future of the country’s energy mix and he was proud of NSW for “setting the standard”.

“To ensure NSW avoids a disorderly transition to renewables like that seen in South Australia, we will manage ours sensibly,” he said.

“This will be done through smart policy decisions and the work of our Renewable Energy Advocate, who will also ensure we are supporting our aspirational target of net zero emissions by 2050 along the way.

“We need more than renewables, we need storage technologies as well but solar will continue to play a big role in our transition.”

Nyngan solar farm (left) and broken hill (right) collectively generated 155MW of energy. Image: AGL.

“with more projeCtS on their way, inCluding 12 Solar projeCtS in the planning pipeline, we expeCt to reaCh the national renewable energy target of 23.5 per Cent by 2020.”

Green unicorns is dedicated to the design and maintenance of solar PV.

17JUNE 2017

THE AUST�LIAN ENERGY REVIEW arrow energy

As reports of a looming east coast gas shortage intensify, news from Arrow Energy has given the Queensland gas industry some hope; an expansion of Tipton gas field is on the horizon, and State Government approvals have been received to build a natural gas pipeline in the Bowen Basin.

Straight shooter

PRODUCING 20 per cent of Queensland’s gas use – enough to power 800,000 homes – Arrow Energy is one of Australia’s leading gas suppliers.

Developing gas since 2000, the company was acquired by joint venture partners Shell and PetroChina in 2010 for $3.5 billion, and now owns and operates five gas fields in the Surat and Bowen Basins, along with the 450MW Braemar 2 gas fired power station and off-take rights at the Daandine and Townsville power stations.

The company currently feeds most of its gas through the Townsville, Daandine and Braemar 2 power stations and off takes the electricity for sale into the grid.

The Moranbah Gas Project was one of the largest gas fields in Australia and supplied gas to the Moranbah Power Station.

While Arrow Energy was working towards meeting growing demand for cleaner burning fuels through its existing coal seam gas (CSG) projects, the company also had a number of pending developments across its 18,000sqkm of exploration tenements, including the east coast’s largest undeveloped gas resource.

The company previously planned to build a $22 billion LNG plant on Curtin Island, which was brought to a halt in January 2015, when Royal Dutch Shell declared the plant “off the table”; however gas projects in the Surat and Bowen Basin were still on the cards awaiting final approval from Arrow to move forward.

Surat Basin

Arrow Energy’s Surat Basin operations comprises four domestic gas fields;

Tipton West, Kohan North, Daandine and Stratheden, and the undeveloped Surat Gas Project between Wandoan and Millmerran in southwest Queensland.

When developed, the Surat Gas Project would significantly bolster Arrow’s CSG portfolio, providing gas for both domestic and overseas markets.

In December 2013, the project received Federal Government approval, which allowed it to progress with exploration, development and production, including 6500 wells.

The development plan was complemented by a proposed pipeline that would transport gas from the Surat Basin to a gas hub 22km west of Gladstone.

However, for now Arrow would focus on improvements to its existing operations.

In the last 12 months, Arrow has invested $600 million in its Surat Basin infrastructure, including a $500 million Daandine expansion project that was commissioned in late 2016, followed by a $100 million Produce the Limit (PtL) project earlier this year to expand capacity at the Daandine and Tipton fields.

In May this year, the good news continued when Arrow entered the front-end engineering design (FEED) phase for a proposed major expansion of the Tipton gas project.

The existing project was located 30km south of Dalby and had been producing gas

since September 2006, which it supplied to the Braemar 1 and Braemar 2 power stations.

Arrow Energy chief executive Qian Mingyang said the Tipton project would involve significant upgrades to its facilities, and double production capacity to more than 80 TJ/d.

“The planned expansion of Arrow’s Tipton operations is expected to involve 90 new wells in the initial phase and another 180 wells over the next 25 years - along with new gathering lines, an upgraded water treatment facility and four new compressors,” Mr Qian said.

"The PtL project is well under way, and will enable Arrow to run existing compression facilities to their maximum design limits, increasing our current Surat production by up to 30 per cent.

“This project continues the development of the Arrow resource which will see more gas in the market.”

Arrow said the expansion projects would bring its Surat gas production to more than 170 TJ/d, for both domestic and export use.

A FEED contract would be awarded soon, and once completed shareholders would consider a final investment decision.

“I am expecting that we will reach agreement on a path to market for the majority of Arrow’s Surat Basin gas reserves later this year,” he said.

Queensland Resources Council chief executive Ian Macfarlane welcomed the news, stating Arrow’s plans would deliver timely gas amid the looming east coast shortage.

“The QRC congratulates Arrow on this exciting development which again demonstrates that Queensland is leading the way when it comes to working to address the problem of the east coast gas shortage,” Mr Macfarlane said.

ElizAbETh FAbri

Arrow Energy has operations in the surat and bowen basins.

All images: Arrow Energy.

“the planned expanSion of arrow’S tipton operationS iS expeCted to involve 90 new wellS in the initial phaSe and another 180 wellS over the next 25 yearS.”

18 JUNE 2017

THE AUST�LIAN ENERGY REVIEWarrow energy

Soil Screening and Amelioration

Erosion and Sediment Control

Re-Vegetation and Rehabilitation

Hydromulching and direct seeding

Vegetation and Weed Management

Environmental Auditing

Landscaping

Consultancy ServicesAsk Us About Our

Five Pillar Client

Guarantee

‘’We won’t be beaten

on value for money, quality,

safety, post job maintenance,

planning or buying power”

perfectearth.com.au

“Arrow has a strong record of working with local companies, so this is good news for local businesses and another vote of confidence in Queensland’s onshore gas industry.

“We only hope that the other States follow Queensland’s lead and open up gas reserves to help fix the energy crisis households and businesses, especially manufacturers, along the eastern seaboard are facing.”

Bowen Basin

Arrow Energy’s proposed Bowen Gas Project was another prospective development waiting to be brought online.

The project involved a phased expansion of the company’s CSG production in the Bowen Basin, and once developed would be positioned near the existing Moranbah Gas Project, running north of Moranbah to Glenden.

The project received State Government approval on 8 September 2014, which was followed by Federal approval in October the same year.

Arrow was yet to give the project the green-light to begin, but in late April the project plan resurfaced when it was revealed Arrow had been granted a Petroleum Pipeline License to build the Bowen Basin project’s accompanying natural gas pipeline.

The proposed 420km buried high pressure steel gas pipeline would transport coal seam gas from the Bowen Basin to a gas hub north west of Gladstone.

The pipeline received Federal approval back in October 2014, and completed FEED in early 2016.

While the recent PPL approval was a step forward for Arrow, the plan would be on hold until the Bowen Gas Project was developed.

A proud supporter of the project, State Energy minister Anthony Lynham said the pipeline was a “missing link” in the gas

supply network.“We are encouraging that pipeline, we

want that pipeline to be hooked up because it’s an important piece of infrastructure that’s been missing,” Dr Lynham told The Australian.

community engagement

On top of Arrow Energy’s commitment to the east coast gas market, the company strived to work with the local Queensland communities.

The company was the foundation partner of Heart of Australia – the country’s first cardiac and respiratory service – and the official energy partner of the Brisbane Broncos.

Arrow provided a direct connection between the Broncos and Queensland regional towns, including Dalby and Moranbah.

In January, Arrow hosted the Bronco’s

tour across 12 regional Queensland schools, and a regional fan day in November 2016.

Arrow Energy vice president external relations Leisa Elder said this was the fourth time Arrow had organised the free regional event for the community to meet their team.

“As part of our Broncos partnership it’s great we can bring the team to Dalby to meet some of their biggest fans,” Ms Elder said.

“This annual event has grown to become a highly-anticipated day on the local calendar and we look forward to this year’s event being even bigger and better.”

Arrow also ran a Brighter Futures program that provided community funding grants, sponsorships, and partnership investments to support community initiatives.

The first round of 2017 grants closed in March, with a second round open until September.

Progress on the proposed bowen Gas Project is moving forward with a PPl license now awarded for a bowen Gas Pipeline.

“i am expeCting that we will reaCh

agreement on a path to market for the

majority of arrow’S Surat baSin gaS

reServeS later thiS year.”

19INDUSTRY PROFILESCOMPANIES GEARING UP

JUne 2017 THE AUST�LIAN ENERGY REVIEW

Thinking big globally for big thinking locallyWITH access to global and local-scale know-how, Holcim is a unique part of Australia’s building and construction materials industry.

The energy and mining sector demands flexibility, technical excellence, and scale from its suppliers.

Yet finding one with a local focus combined with global business resources is rare; that’s why Holcim Australia is unique in being able to offer the best of both these worlds.

Holcim has operated in Australia for more than 150 years, supplying construction materials to many of Australia's biggest mining and energy projects through a national fixed plant network, and mobile plant options for those hard to reach, out of the way places.

Notable projects which Holcim has been a part of include the Gorgon LNG plant, the Sydney Metro rail tunnels, and the Argyle Diamond Mine.

Holcim is part of LafargeHolcim, the world’s leading building and construction materials firm with more than 90,000 employees and 1400 plants in 80 countries.

Holcim’s products benefit from access to the LafargeHolcim Research Centre – the world’s largest concrete research and development facility, which employs 120 PhD-qualified researchers.

At its core, Holcim is an Australian business that draws on global innovation and resources.

More information on how Holcim can support projects can be found by calling 13 11 88, or visiting www.holcim.com.au/RightFromTheStart to receive the company’s new credentials brochure.

Streamlight Dualie 2AA ATEXTHE new Streamlight Dualie® 2AA is an intrinsically safe, high-performance multi-function LED torch.

The compact torch, which is powered by easily sourced AA batteries, is ATEX and IECEx-certified for use in Zone 0 locations faced by many industrial workers.

The Dualie 2AA features three output modes. Its spot beam provides distance illumination, while its flood beam is designed for close-up work. The two beams also can be used together to create an uninterrupted light pattern that delivers 175 lumens, while optimising navigation and eliminating blind spots.

The Dualie 2AA features two white power LEDs. Its spot beam provides 115 lumens and 3100 candela, while the flood beam delivers 115 lumens and 75 candela.

The torch includes separate dual head switches for easy user activation of either function. The two beams can be activated simultaneously by depressing both switches.

Run times for the Dualie 2AA are 24 hours in both spot and flood mode, and 15 hours when the beams are combined. The torch is powered by two AA size alkaline batteries and weighs 3.9oz and measures 6.1 inches in length.

The Dualie 2AA is constructed from an engineered polymer resin that is virtually indestructible, shock resistant, and non-conductive.

More information can be found at: Streamlight.com.

holcim has a global footprint spanning across 80 countries.

WAGO has designed its I/O-SYSTEM 750 in such a way that the same platforms are used in the Ex-proof and non-Ex-proof areas.

Based on design details, the system is extremely versatile, while still adhering to its higher ranking standard.

Featuring more than 500 different modules, it offers the opportunity to directly integrate different sensors in the field and transmit multiple different forms of analog and digital signals bundled through TCP/IP to the control room.

In addition, the WAGO- I/O-SYSTEM makes it possible to remotely record failure messages or fill levels of rain overflow basins and in doing so, control the inflow into the wastewater treatment plant in a targeted manner.

In addition to the general field-bus dependency and the standard availability of open interfaces for the instrumentation, as well as the integration of entire system parts, the HART communication is also offered by WAGO.

Finally, this communication compatibility also permits it to easily permit a system expansion in the future.

Less effort for planners and operators

WAGO’s modular design principle enables planners to equip applications in the Ex-proof and non-Ex-proof areas economically and efficiently without extensive programming.

Operators can also implement special solutions, such as a partial energy measurement, including the storage of all process data, with the components of an automation system.

This makes it possible to establish a targeted monitoring management system that displays historic values.

The functional benefits that WAGO’s system provides for the process engineer are completed for the programmer by offering function libraries free of charge.

WAGO’s- I/O-SYSTEM 750 comprises of more than 500 I/O modules, 60 controllers and 40 fieldbus connections.

That is WAGO-I/O-SYSTEM 750 – making no other automation system more flexible.

The company offers so many variants and can be adapted individually to any project – even in extreme operating conditions.

The WAGO-I/O –SYSTEM includes the established ship building approvals

for offshore use, such as DNV*GL or ABS and can also be used in hazardous environments (dust, gas and mining).

With the intrinsically safe IO the WAGO-I/O-SYSTEM has reliably served in oil and gas mines for years.

In addition to two ethernet interfaces, the WAGO controller offers a variety of additional interfaces.

The WAGO-I/O-SYSTEM 750 can easily integrate with CAN RS-232-485 Profibus, Profinet, Ethernet/IP and MODBUS, among many others.

Additionally the IO system can be incorporated into a VPN infrastructure with openVPN and IPsec protocols directly.

The variety of options with the WAGO system means it is flexible and scalable to customers’ requirements.

Flexibility has a name: WAGO

WAGo’s PFC200 Ex controller.

20 JUNE 2017

THE AUST�LIAN ENERGY REVIEWanChoring & mooring

THE new MOOR-Max Releasable Mooring System combines years of engineering and operational experience to provide a revolutionary mooring system for mobile offshore drilling units (MODUs).

The MOOR-Max System is perfectly suited for the moored and DP/moored semi-submersible rig fleet and offers maximum efficiency, safety, and

flexibility to operators for mixed shallow and deepwater programs.

Each MOOR-Max system is fully customised to rig and any location using class certified equipment.

The crown jewel of the MOOR-Max is the new RAR PlusTM, a proven quick release technology with 35 years of field experience, now featuring a mechanical

backup in addition to the acoustic release.

The RAR Plus allows for quick disconnect even under load, which both reduces risk and drastically saves on critical path time, and offers remote direct and indirect line tension monitoring.

Whether evading tropical storms or improving rig move efficiency, the

MOOR-Max Releasable Mooring System is the only system that combines proven acoustic mooring release technology with efficient proprietary methodologies that come from over 40 years of rig move experience.

More information on the MOOR-Max Releasable Mooring System can be found at: www.delmarus.com.

Reinventing MODU Mooring

The rAr Plus allows for quick disconnect, even under load, to reduce risk and drastically save on critical path time.

21JUNE 2017

THE AUST�LIAN ENERGY REVIEW21Drilling ServiceS & SupplieS

22 JUNE 2017

THE AUST�LIAN ENERGY REVIEWoil & gaS ConSultantS

Celebrating 17 years of quality serviceVANGUARD Solutions is a well respected oil and gas consultancy firm that has a track record of providing pragmatic and effective solutions for operating facilities and development projects.

In May, the company celebrated 17 years serving the oil and gas industry in Australia, New Zealand, Asia, the Middle East and Africa; a proud feat for the company and opportunity to reflect on its vision moving forward.

“We have done and will continue to offer the most experienced and high-quality team in risk and safety engineering and environmental risk management in the region,” Vanguard Solutions managing director Brendan Fitzgerald said.

“We are renowned for our expertise in risk assessment, consequence modelling, safety case development, HAZOP, HAZID, LOPA, functional safety engineering, safety management systems development and augmentation.

“The depth of our experience and expertise has allowed us to provide strategic advice to the highest levels of client organisations.”

Mr Fitzgerald said the company also provides more than just a technical safety study.

“At the very least, we place the study output in the context of the clients operations, with a practical understanding of what it would mean and therefore what options are available as practical solutions,” he said.

“We assist the client to understand any risks and provide a clear way forward.”

In the last 17 years, Vanguard Solutions personnel have fulfilled key roles in many project organisations.

“We are particularly proud that we have

supported many development projects well into their operating years,” Mr Fitzgerald said.

“In fact, for some clients, we are able to provide a store of corporate knowledge

that they have not managed to maintain themselves.

“It is quite common for clients to ask if we have details that they are unable to find for work completed 10 years ago or more.

“Our long-serving staff, supported by our archive system, means that we can usually very quickly retrieve the data and even provide insight into the associated context and background.”

More information can be found at www.vanguardsolutions.com.au.

23JUNE 2017

THE AUST�LIAN ENERGY REVIEW23a day in the life

In May, Australia's peak science and technology research body CSIRO announced it had begun a two year project that will look into separating pure hydrogen from mixed gas streams using membrane reactor technology. Elizabeth Fabri spoke to CSIRO team leader Dr Michael Dolan

about the new project, and how it could help establish a renewable energy export future for Australia.

Dr Michael DolanCSIRO team leader

Q. describe your education and professional history.

I really had no clear career vision when I finished high school so I enrolled in a Bachelor of Applied Science degree at La Trobe University in Bendigo. I was lucky enough to get a PhD scholarship, and thought it was too good an opportunity to pass up. My PhD thesis looked at diffusion in molten silicate slags, and it was during this time I was drawn to materials science, particularly glass and ceramic materials. I sought out a postdoc position at Alfred University in upstate NY, regarded as one of the world’s premier schools for glass and ceramic engineering, and was lucky enough to get an offer from Prof. Scott Misture. During my time there I worked primarily on materials for solid oxide fuel cells.

I joined CSIRO in 2004 as a postdoctoral fellow and I’m still there 13 years later, now as a Principal Research Scientist with CSIRO Energy. I also lead the Gasification Processes team and a range of projects across several sites and business units.

Q. what have been your favourite projects at cSiro?

I’ve been lucky enough to work on a single technology in my time at CSIRO. I joined at the point we had commenced a research program to develop gas processing technologies associated for low-emissions, coal-based power generation.

In these early days we focused primarily on building capability which could underpin the research. We have since been able to identify a low-cost membrane material which could extract high-purity hydrogen from mixed gas streams. Through subsequent projects we’ve scaled the technology from 1cm2 disks to tubular arrays of several thousand cm2.

We’ve also applied the technology to hydrogen gas (H2) production processes as diverse as coal gasification, solar reforming of natural gas, and more recently, decomposition of renewable ammonia. It has been particularly satisfying to progress this technology from a simple idea to a technology which is (hopefully) on the cusp of commercial deployment.

Q. can you describe the membrane reactor technology?

The membrane technology allows the extraction of pure H2 from mixed gas streams. This is important as most H2 production processes produce by products such as carbon dioxide (CO2) in the case of coal gasification and natural gas reforming, and nitrogen gas (N2) in the case of ammonia decomposition. Fuel cells, the electrochemical devices which convert H2 to electricity onboard the latest hydrogen fuel cell vehicles (FCV), have very stringent purity requirements. These membranes can play a key role in ensuring the H2 is suitable for use in these vehicles, regardless of the origin of the fuel. Metal membranes are thin-walled metal tubes through which H2 can pass, but all other species are blocked.

My team has developed a low-cost alloy substrate, catalytic coatings which increase the rate at which H2 can enter and exit the membrane, and a way of sealing the tubes to ensure the highest possible H2 purity.

In this project we are focusing on ammonia as the hydrogen source. We’ll be demonstrating a hydrogen generator which incorporates our membrane technology and produces enough H2 to refuel one FCV per day. We are partnering with BOC and Coregas (who will host trials of the technology at their sites) and with Toyota and Hyundai (who operate the only FCVs in Australia).

This is an exciting project on three fronts. Firstly, we’re applying the membrane technology to ammonia decomposition which, if successful, may help to enable a renewable energy export industry in Australia.

Secondly, it will allow us to demonstrate the technology ’in the real world’ with the help of an industry partner. Finally, with the hydrogen we generate being used in the latest fuel cell vehicles, we will have the ultimate demonstration that our technology is fit for purpose.

Q. do you think australia could become a large-scale exporter of

hydrogen energy?

Australia is very well placed to become an exporter of renewable or decarbonised H2 to meet the growing demand in Asia and Europe, and there are two H2 production models being pursued.

The first is the widely reported La Trobe Valley brown coal model, with liquid H2 export to Japan by purpose-built ships. More recently, the export of renewable H2 in the form of ammonia has started to receive considerable interest, particularly in WA and South Australia where there are abundant solar and wind resources. For this latter model to work, we need technologies to harness the energy contained in the ammonia at the point of use. For example, direct ammonia (NH3) engines can be used to generate electricity, and CSIRO is actively involved in the development of this technology. In addition, the ammonia can be decomposed back into N2 and H2, and the H2 extracted for use in hydrogen fuel cells for mobile and stationary applications.

CSIRO’s metal membrane technology is particularly well suited to the ammonia decomposition application as it can deliver the ultra-pure H2 demanded by these fuel cells.

Q. How is cSiro helping address the energy industry’s biggest challenges?

One of CSIRO’s roles is to be a trusted advisor. Governments and industry

rely on CSIRO to inform policy and investment, and there is no ‘magic bullet’ to an issue as complex as the global energy production and distribution.

We often find that people support technologies as they support sporting teams, that is, emotionally rather than rationally. It’s our job to provide the ‘technology agnostic’ advice to allow important decisions to be made.

Our other main role is to identify the gaps in various energy technology chains and develop the technologies to increase the efficiency, reduce the emissions and decrease the cost of energy extraction, distribution and utilisation. Aside from the technologies mentioned above, we have programs in resource extraction, understanding and minimising environmental impacts, and increasing the efficiency of our energy distribution networks. We take on the risk associated with early-stage technology development when industry can’t or won’t. However, we’re a fairly small player on the world R&D stage in terms of size and resourcing, so must ensure we’re investing in areas with the greatest impact. Collaboration with industry and other R&D organisations is one important way we can maximise our impact and ensure our work is relevant.

“we’re applying the membrane

teChnology to ammonia

deCompoSition whiCh, if SuCCeSSful,

may help to enable a renewable energy

export induStry in auStralia.”

http://www.wago.com.au