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Ichthys LNG progressing

Hot on the heals of Prelude, the Ichthys LNG project is heading for FID this year. The Australian Government has given environmental approval. On the marketing front, Inpex has said that Ichthys has a clear prospect of selling the entire 8.4 million tonne capacity of the project, with agreements with Chubu Power (0.49 mtpa), Toho […]

China and Russia far apart on gas prices

Platts reports that China and Russia continue to be far apart on the price of gas under any agreement for Russia to export gas to China. http://www.platts.com/RSSFeedDetailedNews/RSSFeed/NaturalGas/8024191 Russia is reported to want a price of US$350/1,000 cubic metres (US$9.90/mmbtu), with China offering US$235/1,000 cubic metres (US$6.65/mmbtu). Russia is selling Sakhalin LNG to China at a landed price […]

Go-ahead for Prelude LNG

Shell has announced the go-ahead for the Prelude LNG project, the world’s first floating LNG project, to be developed some 200 km offshore northern Australia in the Browse Basin. The project will tap around 3 trillion cubic feet of gas in the Prelude field, which was discovered in 2007, and begin production in around 2016. […]

APPEA Conference

EnergyQuest will be at the annual conference of APPEA, the Australian Petroleum Production and Exploration Association, in Perth 10-13 April. With 2700 registrations so far it looks like being a great event.

The future of nuclear energy

Last week I chaired a presentation by Professor Barry Brook on Carbon Pricing and the Future of Energy. Notwithstanding the problems in Japan, Professor Brook presented a very well-argued case for nuclear as necessary for cutting greenhouse emissions. His presentation is well worth viewing and is available at: http://www.adelaiderotary.com.au/images/pdfs/bwb_Compatibility%20Model_R.pdf

Subsidising fossil fuels?

The Australian Conservation Foundation recently claimed (1 March 2011) that Australia spends $11 billion more encouraging pollution than cleaning it up. However many of the items claimed as subsidies are rebates from fuel taxes but fuel taxes themselves are omitted from the calculations. According to the Henry Tax Review, Australia collects around $14 billion per […]

Fukashima Daiichi nuclear plant shut dow...

In addition to the terrible human toll and physical destruction resulting from the Miyagiken-Oki earthquake in Japan, the country also has to cope with damage to energy infrastructure, such as distribution networks. One immediate impact is power shortages from the shut-down of the TEPCO Fukashima Daiichi nuclear power plant.This is a big plant, with 4696 […]

The Olympic Dam Story

David Upton has written a great history of Olympic Dam, how Western Mining defied the odds to discover and develop the world’s biggest mineral deposit. Proof that great resource discoveries (oil, gas as well as minerals) are made in the minds of men and women.  http://www.theolympicdamstory.com/

The real dangers of a tax on discovery a...

According to the Treasury, one of the drivers of the Resource Super Profits Tax is a need to increase the tax burden on “immobile” tax bases like resources and land and reduce it on mobile capital.  This fundamentally assumes that resources are immobile.  Existing resource projects are certainly immobile and increasing their tax burden has […]