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.
Mark..
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.
OSH Price at posting:
0.0¢ Sentiment: None Disclosure: Held
