http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.13Change: -0.06
R/$ = 11.56Change: 0.01
Au 1262.45 $/ozChange: 3.15
Pt 1228.50 $/ozChange: 11.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Letters Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Aug 02, 2012

Australian LNG projects under threat from East Africa discoveries

Back
Expertise|Perth|SECURITY|Africa|Ernst & Young|Exploration|LNG|Projects|Resources|Security|Africa|Argentina|Australia|Mozambique|Spain|Tanzania|United States|Security|Gas Discoveries|Gas-hungry Markets|Natural Gas|Oil|Oil And Gas|Oil And Gas Leader|Recent Gas Discoveries|Security|Sufficient Gas|Cristina Fernandez|Dale Nijoka|Security|East Africa|Underlying Technology
Expertise|SECURITY|Africa|Exploration|LNG|Projects|Resources|Security|Africa|Tanzania||Security|Oil And Gas|Security||Security||
expertise|perth|security|africa-company|ernst-young|exploration|lng|projects|resources|security-company|africa|argentina|australia-country|mozambique|spain|tanzania|united-states|security-facility|gas-discoveries|gas-hungry-markets|natural-gas|oil|oil-and-gas|oil-and-gas-leader|recent-gas-discoveries|security-industry-term|sufficient-gas|cristina-fernandez|dale-nijoka|security-person|east-africa|underlying-technology
© Reuse this



PERTH (miningweekly.com) – East Africa’s emerging liquefied natural gas (LNG) industry could pose a threat to Australian projects, consultancy Ernst & Young (E&Y) said this week.

In a quarterly report, global oil and gas leader Dale Nijoka said LNG from East Africa could, in the long term, become more competitive than unsanctioned Australian projects, causing them to be delayed, reworked or possibly cancelled.

“In Australia, the pace of LNG development has resulted in mounting cost pressures for operators. There have been cost over-runs on a number of Australian LNG projects due to inflationary pressures in the local market and appreciation of the Australian dollar relative to the US dollar.”

Nijoka noted that a string of recent gas discoveries in Mozambique and Tanzania had led to a new LNG frontier emerging in East Africa and, although only initial estimates of reserves have been announced, it was believed that there was sufficient gas in place to support several large-scale LNG projects.

“East Africa is geographically well placed to meet the LNG demand in Asian markets,” added Nijoka.

He noted that the gas discoveries have sparked investment interest from both international and national oil companies. While some of the projects in the emerging regions were unlikely to proceed to immediate final investment decisions, Nijoka noted that there would be increased global competition for access to gas-hungry markets.

Meanwhile, Nijoka noted that the shale-gas dash in the US had resulted in a supply glut, which could turn the country into a net gas exporter. He said that despite the weak gas price outlook in the region, national oil companies’ appetite for access to unconventional gas projects in the region remained undiminished.

“The main driver of Asian national oil companies’ pursuit of these unconventional assets is to gain knowledge of the underlying technology in order to apply that expertise to other areas of the globe, as well as to ensure the security of supply.”

European companies were shifting their investment focus to Argentina again, after early shale gas exploration in the region resulted in disappointment.

Nijoka said that Argentina was estimated to have some 774-trillion cubic feet of risked recoverable shale gas resources, of which the Neuquén basin held more than half.

“However, the threat of resource nationalisation, such as in Argentina, continues to be a risk factor for oil companies,” he added.

In May, Argentina nationalised its biggest oil company YPF, seizing a majority stake from Spain’s Repsol as part of a move by President Cristina Fernandez to tighten State control of the economy.

Edited by: Mariaan Webb
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Energy News
The retail price of 95-grade petrol in South Africa will drop by 93c/ℓ or 8.3% from next Wednesday, while wholesale diesel price will decrease by 9.9%, the government said on Friday. Petrol will now cost R10.31 (nearly $1) a litre while the new wholesale diesel price...
South African generator set (genset) designer and manufacturer Diesel Electric Services (DES), has contracted a permanent, high-pressure gas connection that would allow it to test natural gas-powered engines with greater flexibility. The connection would give DES...
Commenting in his capacity as chairperson of the Presidential Infrastructure Championing Initiative (PICI), President Jacob Zuma this week provided an update on the progress of several cross-border and regional infastructure projects championed by the heads-of-State...
More
 
 
Latest News
SAA acting CEO Nico Bezuidenhout, Finance Minister Nhlanhla Nene and SAA chairperson Dudu Myeni
Finance Minister Nhlanhla Nene has assured that loss-making national carrier South African Airlines (SAA) will not receive another bailout from government, noting that the most recent R6.4-billion government guarantee had only been provided in support of an intensive...
South Africa's cumulative trade deficit was R95.3-billion in 2014, the South African Revenue Service (Sars) said on Friday. In 2013, it was R71.4-billion, Sars said in a statement.
Certain regulatory approvals remain outstanding in Telkom’s proposed R2.67-billion takeover of JSE-listed Business Connexion (BCX), the parties said in an update to shareholders on Friday. BCX noted in the statement that the Competition Authority of Botswana had...
More
 
 
Recent Research Reports
Construction 2015: A review of South Africa’s construction sector (PDF Report)
Creamer Media’s Construction 2015 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; the key participants in the sector; local construction demand; geographic diversification;...
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
 
 
 
 
 
This Week's Magazine
The international Square Kilometre Array (SKA) radio telescope – which is to be jointly hosted by South Africa and Australia with, later, outstations in other countries – may not yet exist, but international scientific working groups are already deciding what...
A free Web-based solar power plant capacity-planning tool offers project planners and developers, as well as governments, a means to assess the solar energy potential of thin-film solar PV power over an area of land. The tool was developed by thin-film solar...
As yet, no specific methodology, timeline or costs have been finalised to remedy the water ingress, excessive to contractual specifications, into the Gautrain tunnel between emergency shaft two (E2) and Park Station, says Bombela Concession Company technical and...
ASTRAPAK The group highlighted that executive strategic interventions and other group-wide business improvement imperatives were progressing favourably
The “seriously disruptive” electricity outages in South Africa have cost packaging group Astrapak more than R2-million in “irrecoverable downtime costs”, the company said on Monday, adding that the power cuts were negating some of the benefit of energy saving...
Bakkies and more affordable cars dominated South Africa’s new vehicle market in 2014. Unaudited data from the Department of Trade and Industry (DTI) shows that South Africa’s most popular vehicle in 2014 was the Toyota Hilux, selling 37 562 units.
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks