NT project pipeline outlook Luke Bowen, General Manager ...
Transcript of NT project pipeline outlook Luke Bowen, General Manager ...
NT project pipeline outlookLuke Bowen, General Manager Investment Territory
Department of Trade, Business and Innovation
Territory GSP and SFD Growth
-15%
-10%
-5%
0%
5%
10%
15%
20%
25%
09 10 11 12 13 14 15 16 17 18 19 20 21 22 23Year ended June
SFD (Territory
GSP (Territory
Treasury Forecast
Investment Territory
Established as a recommendation of the ‘A plan for budget repair’ Report
• The Territory economy needs stronger economic growth than the 3.5 per cent currently forecast.
• Investment Territory has been set the ambitious goal of doubling the Territory’s growth rate to 5%.
• Reaching the growth rate target of 5% would see an additional $1 billion in the Territory economy and thousands more jobs.
• Achieving this is only possible through sustainable economic development, attracting private sector investment to create jobs.
Department of Trade, Business and Innovation
56% of the global population
lie within this region
Indo-Pacific Region
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15/03/19 Developing the North – challenges and opportunities
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Investor journey context
Department of Trade, Business and Innovation
Policy contextStrategy
developmentInvestment promotion
Investor engagement
Investor facilitation
Investor aftercare
The Territory is
a competitive
investment
environment with
policy settings
that support
investment
Investment
opportunities
(product
development),
needs and
priorities are
identified
There is an
awareness of
the Territory as
an attractive
investment
destination
Positive
experience
and interest in
investing in
the Territory
Commercial
propositions
converted into
real investment
and jobs
Project delivery
supported and
additional
investment
pursued
OU
TCO
MES
Developing bankable concepts
Economic agencies and Economic Innovation
Market Engagement Commercial facilitation
Gathering leads Closing and facilitating investment
Investment Territory
Department of Trade, Business and Innovation
Anne Tan
General Manager
Luke Bowen
General Manager
Hayley Richards
Senior Executive Director
Commercial Facilitation
Cathy White
Senior Executive Director
Shaun Drabsch
CEO
Sibylle Brautigam
Deputy CEO
Zoe McManus
A/CFO
Luke Bowen
Investment Territory
Wendy Pritchard
Market Engagement
Jason Howe
Oil & Gas
Jason Finlay
Facilitated Projects
Guy Boekenstein
Defence & National Security
Scott Wauchope
Priority Sectors and Trade
Giovian D’Alessandro
Shiplift Project
Shane Thornton
Local Jobs Fund
Hayley Richards
Commercial
Facilitation
Commercial Facilitation group takes a sales approach which
comprises:
• employing a pipeline management methodology
• triaging projects to establish support required with a focus on
projects ‘most likely to convert’ ; and
• Case Manager for all ‘real’ projects.
Department of Trade, Business and Innovation
Pre-FID projects:
capex value by sector
Agribusiness
Defence -Infrastructure
Defence - Sustainment
Horticulture
Maritime
Minerals
Oil and Gas -Downstream
Oil and Gas - Midstream
Oil and Gas - Service and Supply
Oil and Gas - Upstream Pastoral
Property Development -Residential
Services
Space
Tourism
Fisheries and Aquaculture
Renewable Energy
The pipeline
Department of Trade, Business and Innovation
Three broad tiers of assistance, customisable to need
Tier 1
Proposal is small to moderate in scale
and capable of being accommodated
through existing assessment and
approval processes.
Support: Initial advice through
assigned case manager.
Service could include:
• referral and introductions to relevant
internal expertise, other NTG
agencies, business networks, industry
groups
• negotiating with proponent and
referring to relevant agencies where
issues arise.
Tier 2
Proposal is non-standard, moderate to
large scale or complex proposal.
Likely to have significant capital
investment, employment, strategic
impact. (significant project)
Support: Assigned case manager to
assist with approval planning and
inter-agency coordination may include
formal documentation through
exchange of letters, MOU, PFA.
Tier 3
Very large or complex proposals that
have significant investment and
potential to create significant
employment with strategic importance
(major project, facilitated investment
project), typically will involve a PDA
Support: Case manager possibly
with team to assist with Government
related aspects in the Territory’s
interest.
Department of Trade, Business and Innovation
• Offshore gas reserves > 30 Tcf
• Onshore P50 Gas-In-Place Resource for the Velkerri B-Shale alone of > 500 Tcf across the Beetaloo Sub-basin
• The Velkerri resource is 4 x Ichthys Field,using an estimated ultimate recovery of 10%
• Santos’ 4-stage vertical hydraulic stimulation at Tanumbirini-1 returned ‘better than expected gas flow rates’
• Origin completed horizontal sidetrack at Kyalla 117 N2 - initial results demonstrate ‘good reservoir continuity…and continuous gas shows’
Gas resources to support the Vision
4/03/20 Oil & Gas Industry Roundtable
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Location, Market Access
• Strategic location provides access to boutique export markets
• Gas fields within 500 km of Darwin
Affordable Gas Supply
• Significant resources offshore and onshore
• Need efficient production, collection and transportation
Policy & Investment Settings
• Globally competitive environment
• Reviewing policy levers & options
• Facilitating competitive investment e.g. NAIF
4/03/20 Oil & Gas Industry Roundtable
Land,Infrastructure,
Services
Efficient Market Access
Policy & Investment
Settings
Affordable Gas Supply
Critical NT Industry Development Factors
Land, Infrastructure, Services
• Gas Manufacturing and Processing Precinct
• Enabling infrastructure
• Common user model
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4/03/20 Oil & Gas Industry Roundtable
Northern Gas Manufacturing and Processing Precinct
East Arm Logistics Precinct
WharfMarine Supply Base
Ship LiftLight Industry
Supporting
Industry
Petrochemicals
Methanol
Gas to Liquids
Strategic
Minerals
Utilities
Ammonia
Cluster
CCS Hub
LNG
LNG
Power
Station
Potental
LNG /
Petrochemicals
• Development model based on concept of industrial ecology e.g. Kwinana Industrial Estate
• Diversification options include condensate processing, methanol and ammonia
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Offshore Projects
4/03/20 Oil & Gas Industry Roundtable
Project Scope Cost Status
1. Barossagas field
Field and pipeline
US $4.7b • FID Q2 2020
2. Darwin LNG refurbishment
Major renovations to existing plant
US $600m • FID Q1 2020
3. Bayu-Undandecommissioning
Remove offshore infrastructure
US $700m • Approx. 2023
4. Evans Shoal gas field development
Field and pipeline
US $5-6b • Pre-FEED for DLNG backfill
5. Petrel gas field development
Field development and pipeline to Darwin
> US $1b • Acquiring 3D seismic
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Onshore Projects
4/03/20 Oil & Gas Industry Roundtable
Project Scope Cost Status
1. Beetaloo Sub-basin - Kyalla wet gas- Velkerri dry gas
Appraisal
Appraisal
A$30m
A$30m
• Origin plan to drill Kyalla 117 N2 and Velkerri 76 S2 in 2019/20
• Santos drilling, hydraulic fracturing and flow testing Tanumbirini-1 2019 Inacumbaand Tanumbirini-2 2020
2. McArthur Basin Exploration
Production
Farm-in
Exploration
tbc
A$95m
• Imperial plan at least one exploration well in 2020
• Armour preparing production licenceapplication at Glyde gas discovery
• Santos agree to $95m farm-in to Armour QLD and NT permits
• Pangaea, SweetPea and Minerals Australia also active in Beetaloo/ McArthur Basin
3. Amadeus Basin Exploration
Exploration
Exploration
A$10m
A$51m
tbc
• Santos/Central suspend Dukas-1 well in 2019 due to significant over-pressure, plan to re-enter in 2021
• Central to spend $51 m in 2020 supported by asset farm-out
• Black Rock seeking board approval for exploration program
2.1.
Onshore projects map
3.
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Gas Manufacturing and Processing Projects
4/03/20 Oil & Gas Industry Roundtable
Project Scope Cost Status
1. CoogeeMethanol Plant
350,000t p.a.methanol plus oxygen, nitrogen and argon gases
A$500m • Under feasibility• FEED decision 2020• FID 2021
2. Darwin Clean Fuels
Condensate processing plant
A$1.2b • BFS and pre-FEED underway • FEED decision Q2 2020• FID 2021
3. BMT Waste Management Facility
Treatment of mercury and NORM waste
A$30m • Addressing long term waste storage solutions
4. Micro LNG LNG for remote energy users
A$100m • In FEED
Laverton methanol plant (Coogee)
Loading truck at micro LNG plant Kwinana
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Darwin Ship Lift
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