PERTH (Reuters) – Santos (STO.AX: Quote, Profile, Research, Stock Buzz) hiked the cost of its Gladstone LNG project on Thursday by 15 percent to $18.5 billion, saying it needs to find more gas ahead of a planned 2015 start-up, adding to evidence about the challenges facing Australia’s coal seam gas industry.
Santos is the second of three coal seam gas-to-liquefied natural gas (CSG to LNG) projects to announce a big cost increase, and the news knocked its shares down 4.5 percent, even though a cost hike was widely expected.
MELBOURNE/PERTH (Reuters) – Falling coal prices and soaring costs have forced Australia’s producers to start trimming output and letting go of some workers, hurting miners, rail and port operators and potentially threatening plans for more than $30 billion of investment in new mines.
Miners operating in Australia, led by BHP Billiton (BHP.AX: Quote, Profile, Research, Stock Buzz), Rio Tinto (RIO.AX: Quote, Profile, Research, Stock Buzz) and Xstrata (XTA.L: Quote, Profile, Research, Stock Buzz), have long been envied for their proximity to China, the biggest consumer of coal, but that advantage has been whittled away this year.
KUALA LUMPUR, June 8 (Reuters) – Global liquefied natural
gas markets will tighten and prices likely increase over the
next two to three years as supplies rise more slowly than
appetite from a growing number of importers, industry leaders
said at an event this week.
Consumers will pay the price for delays to investment
decisions during the global financial crisis, with few new
projects scheduled to start exporting until 2015.
KUALA LUMPUR (Reuters) – The global oil market is well supplied and can cope with the loss of Iranian crude to Western sanctions, oil officials and executives, including the heads of Total (TOTF.PA: Quote, Profile, Research, Stock Buzz) and Royal Dutch Shell (RDSa.L: Quote, Profile, Research, Stock Buzz), said this week.
An increase in global crude supplies and falling crude prices have helped cushion the impact of sanctions targeting Iran’s controversial nuclear programme.
KUALA LUMPUR, June 7 (Reuters) – The chief executive of
Australia’s Woodside Petroleum (WPL.AX: Quote, Profile, Research) brushed aside concerns
that cheaper U.S. gas supplies could undermine the Asian
liquefied natural gas market and the company’s pricing power.
Asian spot LNG prices LNG-AS of around $18 per million
British thermal units (mmBtu) compare with around $2.40 per
mmBtu for U.S. natural gas NGc1, a price difference that has
set the regional market buzzing with the possibility of a surge
in cheaper supplies for consumers.
KUALA LUMPUR, June 5 (Reuters) – Exxon Mobil Corp,
the world’s largest publicly listed energy company, warned on
Tuesday that too much government regulation could undermine a
rapid global expansion of gas output from a range of
Helped by a boom in shale gas, Exxon Mobil has become North
America’s largest natural gas producer, but energy firms face
pressure for tighter regulation of the industry over concerns
about the impact of drilling on the environment and also public
concern that U.S. gas prices could rise if the gas is exported.
PERTH (Reuters) – Confidence in Australia’s coal seam gas industry, one of the nation’s brightest economic prospects, has begun to flicker.
For the first time since energy firms kicked off $50 billion of projects to drill for gas in the region’s rich coal deposits less than two years ago, there is a consensus emerging among industry executives and experts that plans are well off track.
PERTH, June 4 (Reuters) – Confidence in Australia’s coal
seam gas industry, one of the nation’s brightest economic
prospects, has begun to flicker.
For the first time since energy firms kicked off $50 billion
of projects to drill for gas in the region’s rich coal deposits
less than two years ago, there is a consensus emerging among
industry executives and experts that plans are well off track.
MELBOURNE, May 24 (Reuters) – Australia’s AGL Energy
launched a A$900 million ($875 million) share sale
after winning approval from Australia’s competition watchdog to
take full control of Victoria state’s largest power station
The A$448 million plan to take full control of Loy Yang A
power station, which provides 30 percent of Victoria state’s
electricity, also includes Australia’s largest brown coal mine.
ADELAIDE/MELBOURNE, May 16 (Reuters) – Australia is on its
way to becoming the world’s top exporter of liquefied natural
gas, but industrial consumers on the country’s east coast are
worried gas producers will ship so much to Asia’s booming
economies that domestic supplies will be tight.
East coast gas will flow to international buyers via three
multi-billion dollar LNG projects under construction near
Gladstone and due to open in 2014 and 2015. Exports will drive
up the price of gas, which previously had no outlet other than
the landlocked regional market.