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Released May 15, 2024 | SUGAR LAND
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Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--With gas embedded in the energy mix for the foreseeable future, upstream services firm TechnipFMC (NYSE:FTI) (London, England) said it secured a contract to provide subsea infrastructure to support liquefied natural gas (LNG) output from Australia.
TechnipFMC said it secured a contract for Aussie-focused Woodside Energy Group (NYSE:WDS) (Perth, Australia) for subsea infrastructure that's expected to support production for the Pluto LNG project.
The facility processes gas from the offshore Pluto and Xena natural gas fields, situated off the coast of Western Australia. TechnipFMC will design, manufacture and install the subsea production system, along with flexible pipe and umbilicals, for a well in the Xena field.
Gas offshore is sent through a 110-mile pipeline to facilities onshore that can process raw natural gas into LNG, to the tune of around 5 million tons of production per year. A second train, or liquefaction facility, would be able to double that volume.
A final investment decision (FID) on the Xena expansion was reached during the first quarter. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can learn more by viewing by the related project reports.
From 2021-22, Australia was the world leader in LNG exports, with a record volume of 83.2 million metric tons. Its proven and probable reserves stand at about 25 trillion cubic feet, though it since has been eclipsed by the United States and its rich shale natural gas reserves.
Woodside saw a 7% production decline from fourth quarter levels. Production from Pluto was curtailed during the period because of electric issues for both onshore and offshore installations.
That said, Woodside said the overall expansion to Pluto was about 62% completed and first cargoes are expected at some point in 2026.
Revenue was lower both sequentially and year-on-year for Woodside. TechnipFMC, for its part, saw revenues dip from fourth quarter levels, but posted a year-on-year improvement of nearly 20% to $2 billion.
In April, MidOcean Energy (Washington, D.C.), an LNG company formed and managed by EIG, completed a $2.15 billion plan to take over the portfolio of Tokyo Gas Company (Tokyo, Japan) in Australia. MidOcean plans set up an office in Perth, where it can help oversee operations at the Gorgan, Pluto and Queensland Curtis LNG projects in Western Australia.
Tokyo Gas had a 5% interest in Pluto.
The developments come as Australia solidifies a role for natural gas in its economy through at least 2050, to the concern of environmentalists who note that natural gas is still a polluting fossil fuel.
Last week, the government unveiled a gas strategy that aims to ensure adequate supplies, while at the same time advocating for lower emissions and carbon storage.
Australia's Minister for Resources Madeleine King said the plan "makes clear" that gas has a long-term role to play through 2050, and perhaps beyond.
"But it is clear we will need continued exploration, investment and development in the sector to support the path to net zero for Australia and for our export partners, and to avoid a shortfall in gas supplies," she added.
Gas supports 27% of total energy demand in Australia and accounts for around 14% of its export income.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
TechnipFMC said it secured a contract for Aussie-focused Woodside Energy Group (NYSE:WDS) (Perth, Australia) for subsea infrastructure that's expected to support production for the Pluto LNG project.
The facility processes gas from the offshore Pluto and Xena natural gas fields, situated off the coast of Western Australia. TechnipFMC will design, manufacture and install the subsea production system, along with flexible pipe and umbilicals, for a well in the Xena field.
Gas offshore is sent through a 110-mile pipeline to facilities onshore that can process raw natural gas into LNG, to the tune of around 5 million tons of production per year. A second train, or liquefaction facility, would be able to double that volume.
A final investment decision (FID) on the Xena expansion was reached during the first quarter. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can learn more by viewing by the related project reports.
From 2021-22, Australia was the world leader in LNG exports, with a record volume of 83.2 million metric tons. Its proven and probable reserves stand at about 25 trillion cubic feet, though it since has been eclipsed by the United States and its rich shale natural gas reserves.
Woodside saw a 7% production decline from fourth quarter levels. Production from Pluto was curtailed during the period because of electric issues for both onshore and offshore installations.
That said, Woodside said the overall expansion to Pluto was about 62% completed and first cargoes are expected at some point in 2026.
Revenue was lower both sequentially and year-on-year for Woodside. TechnipFMC, for its part, saw revenues dip from fourth quarter levels, but posted a year-on-year improvement of nearly 20% to $2 billion.
In April, MidOcean Energy (Washington, D.C.), an LNG company formed and managed by EIG, completed a $2.15 billion plan to take over the portfolio of Tokyo Gas Company (Tokyo, Japan) in Australia. MidOcean plans set up an office in Perth, where it can help oversee operations at the Gorgan, Pluto and Queensland Curtis LNG projects in Western Australia.
Tokyo Gas had a 5% interest in Pluto.
The developments come as Australia solidifies a role for natural gas in its economy through at least 2050, to the concern of environmentalists who note that natural gas is still a polluting fossil fuel.
Last week, the government unveiled a gas strategy that aims to ensure adequate supplies, while at the same time advocating for lower emissions and carbon storage.
Australia's Minister for Resources Madeleine King said the plan "makes clear" that gas has a long-term role to play through 2050, and perhaps beyond.
"But it is clear we will need continued exploration, investment and development in the sector to support the path to net zero for Australia and for our export partners, and to avoid a shortfall in gas supplies," she added.
Gas supports 27% of total energy demand in Australia and accounts for around 14% of its export income.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
