Darwin LNG Terminal

From Global Energy Monitor
This article is part of the Global Fossil Infrastructure Tracker, a project of Global Energy Monitor.
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Darwin LNG Terminal is an LNG terminal in Northern Territory, Australia.

Location

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Project Details, Train 1

  • Owner: Santos Limited, 44.00%, Eni S.p.A., 11.00%, INPEX, 11.00%, SK E&S, 25.00%, Tokyo Electric Power Company, 6.00%, Tokyo Gas, 3.00%[1]
  • Location: Darwin, Wickham Point, Northern Territory, Australia
  • Coordinates: -12.5221, 130.8663 (exact)
  • Capacity: 3.24 mtpa, 0.46 bcfd
  • Status: Operating
  • Type: Export
  • Start Year: 2006

Project Details, Trains 2 & 3

  • Owner: Santos Limited, 44.00%, Eni S.p.A., 11.00%, INPEX, 11.00%, SK E&S, 25.00%, Tokyo Electric Power Company, 6.00%, Tokyo Gas, 3.00%[1]
  • Location: Darwin, Wickham Point, Northern Territory, Australia
  • Coordinates: -12.5221, 130.8663 (exact)
  • Capacity: 6.30 mtpa[1]
  • Status: Shelved[1]
  • Type: Export
  • Start Year:

Note: mtpa = million tonnes per year; bcfd = billion cubic feet per day

Background

The Darwin LNG Terminal is an onshore LNG terminal in Northern Territory, Australia.[2] It has one liquefaction and purification train, a 311 mile (500 kilometre) offshore facility, and a subsea pipeline from Bayu-Undan field in the East Timor Sea to Darwin in Australia's Northern Territory.[3]

Construction began in June 2003. The plant was officially commissioned in January 2006. According to the company website, since 2006, an average of one cargo per week has been shipped to its Tokyo Electric and Tokyo Gas customers.[3] As of 2017, Australia is the second largest LNG exporter after Qatar. The country exports almost 44 million tons a year. [4]

In March 2020 Santos announced that would sell its 25% stake in the Darwin LNG facility and in the Bayu-Undan gas field off Northern Australia to SK E&S of South Korea for $390 million.[5]

Train 2 Project Details

  • Owner: ConocoPhillips, Eni, Inpex, Santos, TEPCO, Tokyo Gas
  • Location: Darwin, Wickham Point, Northern Territory, Australia
  • Coordinates: -12.5221, 130.8663 (exact)
  • Capacity: 6.3 mtpa[6]
  • Status: Shelved
  • Type: Export
  • Start Year:

Note: mtpa = million tonnes per year; bcfd = billion cubic feet per day

Train 2 Expansion Plans

Darwin LNG is trying to find new sources of gas. Multiple options are being considered.[7]

According to the International Gas Union's 2017 report, because of declining natural gas feedstock, Darwin considered backfilling existing liquefaction and purification trains instead of building more expansion trains.[8] Darwin has not halted plans for train expansion. In April 2017, the company announced it would conduct a feasibility study to asses whether a second train should be added to the facility. The Northern Territory government will contribute 40% of the feasibility study cost. ConocoPhillips and upstream resource owners, Evans Shoal, Caldita-Barossa, Poseidon, Cash Maple and Bonaparte LNG Terminal's offshore facility, will fund the remaining 60%.[9] There have been no development updates since 2017 and the train 2 expansion project is presumed to be shelved.

Woodside and ConocoPhillips, operators of Australia’s two oldest LNG plants, Darwin LNG Terminal and North West Shelf LNG Terminal, are considering cheaper development options for their Browse and Barossa gas fields to compete against Qatar. Qatar added to the fears of Australia’s LNG owners in July 2017 when it announced a 23 million ton-a-year increase in gas exports.[10]

ConocoPhillips owns 37.5 percent of the Barossa gas field. The company prefers Barossa gas to feed the Darwin LNG Terminal.[10]

In April 2017 Australia’s Northern Territory government set aside A$250,000 for a feasibility study into the potential expansion of the Darwin LNG plant.[11] In February 2018 it was reported that Santos was considering exporting Bonaparte Basin gas through the Darwin terminal.[12] In November 2018 it was reported that ConocoPhillips was still considering the expansion.[13] In mid-March 2020, Macquarie Wealth Management warned that a prolonged collapse in oil prices could result in delays to capital expenditure infrastructure projects, including Santos's AUS$7 billion Barossa gas project.[14] Confirmation that the Barossa project has been officially delayed came on March 23 when Santos chief executive Kevin Gallagher announced that all of the company's expansion projects were being put on hold, with no indication given as to when Barossa would be advancing.[15]

Articles and resources

References

  1. 1.0 1.1 1.2 1.3 LNG export and import projects - 4Q 2020, Bloomberg Finance, January 21, 2021
  2. Darwin LNG Terminal, A Barrel Full, accessed April 2017
  3. 3.0 3.1 Our Projects, ConocoPhillips Australia, accessed July 2017
  4. Qatar Moves to Ensure LNG Dominance, Arab Gulf States Institute in Washington, April 17, 2017.
  5. Santos to sell 25% of Darwin LNG, Bayu-Undan assets for $390 mln, Reuters, Mar. 12, 2020
  6. ASX/Media Release, Santos, Oct. 14, 2019
  7. David Tollner, "David Tollner: Malcolm Turnbull and Michael Gunner need to come to arrangement on onshore gas," NT News, September 30, 2017.
  8. "2017 World LNG Report" International Gas Union, Accessed June 20, 2017.
  9. Esmarie Swanepoel, "Darwin LNG expansion to be studied," April 19, 2017.
  10. 10.0 10.1 Peter Milne "Woodside’s Browse plant and ConocoPhillips to take on Qatar," The West Australian, July 13, 2017.
  11. Darwin LNG Train 2 study gets government’s support, LNG World News, Apr. 17, 2017
  12. Exploration & Production of Bonaparte LNG in focus as Santos targets Asia, Interfax, Feb. 23, 2018
  13. Conoco Eyes Second Train At Darwin LNG, Interfax Agency, Nov. 6, 2018
  14. Oil Search halts sale talks, cuts spending as global prices collapse Sydney Morning Herald, March 18, 2020
  15. Hunkering down: Santos delays $7b project, slashes spending The Australian Financial Review, March 13, 2020

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External resources

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