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ABARE Report on PNG gas

  1. 99 Posts.
    This is what is written in the ABARE report about Oil Search and Timor gas and I can see where the discrepansies are, especially PNG gas. To me its either PNG gas or Timor gas into Australia, but I will post more information if people want more info from the ABARE report.


    Timor Sea
    The Timor Sea, north of Australia is estimated to contain over 20 000 petajoules of
    natural gas (Office of Territory Development 2002). These resources are primarily in
    the areas subject to current cooperative arrangements between Australia and East Timor
    (i.e. the three zones of cooperation A, B and C). There are two primary gas deposits,
    Bayu–Undan (approximately 90 per cent Timorese – 10 per cent Australian) and the
    Greater Sunrise collection (approximately 18 per cent Timorese – 82 per cent
    Australian), which is mainly located in the Bonaparte basin.
    The proposed development of a liquefied natural gas and gas to liquids industry in the
    Northern Territory is underpinning the extensive development of Timor Sea reserves
    and establishes the possibility that Timor Sea supplies could be piped through to Mt Isa
    in Queensland and Moomba in South Australia. For this analysis, the assumed price of
    Timor Sea gas delivered to Moomba is $2.86 per gigajoule.

    Papua New Guinea
    The Kutubu, Hides and south east Gobe deposits in the highlands of Papua New Guinea
    are estimated to contain upwards of 10 360 petajoules of natural gas reserves (Papua
    New Guinea Department of Petroleum Energy 2001). The proposal for a pipeline
    interconnection between the gas fields in Papua New Guinea’s southern highlands with
    Townsville and Gladstone in north central Queensland (and possibly even Brisbane),
    has been under consideration since at least the mid 1990s and along with Timor Sea
    supplies, opens up the possibility of Australia importing natural gas for the first time.
    The viability of the 2500 km pipeline project (typically referred to as the PNG pipeline)
    relies on a large range of factors, but critically on securing sufficient foundation
    customers to underpin long term demand (estimated to be around 150 petajoules). The
    recent announcement that the proposed Townsville gas fired power station will be
    supplied by the Enertrade–CH4 consortium and not from the PNG pipeline illustrates
    the competitiveness of coal seam methane as an alternative source of supply in eastern
    Australia and the difficulties faced by the pipeline proponents in serving their base
    foundation customers (Sykes 2002). In this analysis, gas from the fields in Papua New
    Guinea’s southern highlands is assumed to have a delivered price, in Queensland
    (Brisbane), of around $0.08–0.44 per gigajoule above that assumed for Timor Sea gas
    and reflects both lower assumed supply prices and delivery costs for gas sources from
    the Timor Sea region. The decision on whether gas is routed from the Timor Sea or
    Papua New Guinea is determined in the modelling framework, on the basis of relative
    economic costs only and it is not explicitly assumed that the Papua New Guinea
    pipeline will go ahead in any particular year.

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