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Angela Macdonald-SmithEnergy Reporter: June 6, 2016

Screen Shot 2016-05-21 at 10.18.28Shell Australia chairman points to LNG as costly option for NSW, Vic gas

NSW and Victoria may have to consider importing LNG from Queensland or Papua New Guinea if the states don’t act to get onshore gas out of the ground, even though it would be a costly solution to the current stalemate, Shell Australia chairman Andrew Smith has suggested.

Mr Smith told the APPEA oil and gas industry conference in Brisbane on Monday that the time has come to “think creatively” about how best to serve local gas customers to ensure they have adequate and reliable supplies.

“I, for one, have mused about importing LNG to our nation’s largest city,” he said.


Shell Australia’s Andrew Smith decries ‘dishonest’ campaign against gas

Shell Australia chairman Andrew Smith is set to call on politicians and industry leaders to tackle “head on” what he says is an orchestrated campaign that is unfairly demonising the natural gas industry to the detriment of regional economies.

The global energy giant’s most senior local representative will use his address at the APPEA petroleum industry conference in Brisbane on Monday to urge “frank dialogue” to counter the “sometimes fanciful” criticism of the industry by its opponents, and the “misleading and often dishonest political campaign” against gas.

 “There is no doubt our industry is the subject of an orchestrated, organised and well-funded campaign to hem in its further development,” Mr Smith will say, pointing to the stalling of the onshore gas industry in NSW and Victoria, and the vocal campaigning against offshore exploration in the Great Australian Bight.

“Complacency, and also manipulation, sits at the centre of this increasingly concerning situation,” he says, citing complacency from industry and communities, and manipulation from activists “that have unfairly demonised both investors and workers that have contributed to the economic success of our nation”.

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  • 12:00AM JUNE 6, 2016

The local head of Shell, Australia’s biggest gas exporter, says it is absurd the nation continue to burn brown coal when there are abundant reserves of cleaner-burning gas.

And, he adds, the gas industry’s failure to promote itself in the face of growing opposition is helping entrench the position.

In a speech today to the Australian Petroleum Production & Exploration Association conference in Brisbane, Shell Australia chairman Andrew Smith will call on gas producers to step up their efforts to tackle what he says is the industry’s greatest challenge — how to prosper in a carbon-constrained world.

“It strikes me as absurd that a nation as rich in natural gas as Australia persists in burning brown coal for electricity generation,” Mr Smith says in notes provided before his opening industry speech at the conference.


Shell flags Sydney LNG imports

  • 10:06AM JUNE 6, 2016

Shell Australia chairman Andrew Smith has raised the prospect of Sydney importing its natural gas as LNG in order to overcome looming tightness in the gas market that is being exacerbated by restrictions around onshore gas production.

The flagging of a Port Botany regasification terminal comes as east coast gas prices are set to rise as Gladstone export projects ramp up and Japan’s Inpex says it will investigate whether east coast prices will actually justify piping gas from their Ichthys field off the Kimberley coast through Darwin to the east.

It also comes less than a decade after Eastern Star Gas investigated exporting gas from its Narrabri project, now owned by Santos, from Newcastle.

“If we choose not to act on declining gas fields, the idea of constructing a re-gas terminal in Port Botany may fast become a viable alternative for the industry,” Mr Smith said in a speech to the Australian Petroleum and Production Association conference in Brisbane today.

“In the current climate, I could see the rationale for such a suggestion — as LNG prices are historically low and pricing structures for pipeline capacity limit gas flow,” he said, but noted the benefits could outweigh the costs and that it could impact the functioning of the gas market.


Shell boss talks up Sydney LNG terminal

Peter Klinger, Brisbane – The West Australian on June 6, 2016, 8:06 am

Shell Australia chairman Andrew Smith says it may be time to build an LNG import terminal in Sydney as a way of dealing with a looming gas shortage in NSW and Victoria.

Mr Smith’s idea came as Inpex flagged the potential for its 890km Ichthys pipeline, connecting Browse Basin fields with an LNG plant in Darwin, to one day feed gas into the proposed North East Gas Interconnector, which is to link Northern Territory gas fields with east coast markets.

The LNG industry is desperate to find new markets for its gas to offset a supply glut at a time of weaker than expected demand growth. Tapping into the east coast’s looming gas shortage, driven because of a lack of offshore resources and bans on onshore drilling, is attracting increased attention though significant challenges including a lack of infrastructure remain.

The cost of re-gasification terminals, which turn the fuel from liquid back into a gaseous state, has fallen sharply over the past decade and cost only hundreds of millions of dollars, compared with billion-plus price tags previously.

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