Unlocking stranded gas in Australia

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Gas exploration
The latest technology and innovation advancements in gas exploration have the potential to transform the global energy sector for good. Shell’s Prelude floating liquefied natural gas (FLNG) project in the Browse Basin in Broome has minimised project costs, and the environmental footprint associated with LNG exploration, by removing major elements from the process including; long pipelines to shore, compression platforms and infrastructure development onshore. 
 
Above all, Shell’s pioneering FLNG facility puts Australia at the forefront of unlocking ‘stranded’ offshore gas reserves, which the CSIRO estimates to be about 140 trillion cubic feet nationwide. FLNG will be one of the largest floating structures ever constructed in the world and is expected to produce a minimum of 3.6 million tonnes of LNG a year. 
 
Woodside Petroleum Limited (ASX:WPL) has also placed itself in the front seat of the technology drive for new gas exploration, pioneering the development of modularised LNG processing "trains" for Australia’s first commissioned Pluto project, located 190km north-west of Karratha in Western Australia. "The modularisation of the LNG process and the move towards FLNG options will allow more certainty around construction costs," says Woodside chief executive Peter Coleman. 
 
Senex pushes forward to FY profit
Senex Energy Limited (ASX:SXY) says it expects to boost its annual net oil production by a further 66 per cent as it delivered its full year profit results. The oil producer generated $8.9 million in net profit for the year, rebounding from a $3.5 million loss the year before. Senex says the result was largely underpinned by a surge in oil production at its Cooper Basin oil fields. Managing Director Ian Davies says it was placed on the S&P/ASX 200 index in April this year as its market capitalisation expanded. The company is also focused on developing world class unconventional gas resources in the Cooper Basin following encouraging exploration results.
 
BHP US shale oil assets 
BHP Billiton Limited’s (ASX:BHP) US shale oil assets have become a lot more lucrative after its joint venture partner Chesapeake Energy sold down most of its interest in the Permian Basin .Chesapeake’s US assets have reportedly been sold to Chevron and Shell for about $3.15 billion valuing BHP’s stake at about $US5 billion. The news follows $US2.84 billion in write downs to BHP’s US shale gas assets last month, largely impacted by plunging US gas prices. 
 
Tax incentives for LNG under threat
As the liquefied natural gas sector spends about $175 billion developing LNG projects in Australia, the government is considering wiping out tax incentives as it pushes towards a 30 per cent company tax rate. The industry says it would make Australia less competitive and fall behind other LNG producing nations, including the US, Russia and Indonesia. 12,000 full-time jobs would also come under threat, according to the Australian Petroleum Production and Exploration Association. 
 
NRW Port Hedland inner harbour contract downgraded
NRW Holdings Limited (ASX:NWH) says its Port Hedland inner harbour contract has been reduced by about $75-80 million. The mining industry contractor doesn’t expect the downsize to impact its full year guidance. The company recently announced a $133 million contract to build Rio Tinto Limited (ASX:RIO) Cape Lambert iron ore plant in project in Western Australia. 
 
Nufarm rebounds to FY profit
Nufarm Limited (ASX:NUF) has rebounded to a full year net profit as the agricultural chemicals maker forecast further improvement in its underlying performance for the year ahead. Nufarm posted a net profit of $72.6 million up from a loss of $49.9 million the same time last year and despite one-off legal cost impairments of about $30 million. 

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