http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.35Change: -0.06
R/$ = 12.15Change: 0.01
Au 1189.85 $/ozChange: 1.35
Pt 1113.50 $/ozChange: -2.50
 
 
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|Africa|Ernst & Young|Exploration|LNG|Projects|Resources|SECURITY|Africa|Argentina|Australia|Mozambique|Spain|Tanzania|United States|Gas Discoveries|Gas-hungry Markets|Natural Gas|Oil|Oil And Gas|Oil And Gas Leader|Recent Gas Discoveries|Sufficient Gas|Cristina Fernandez|Dale Nijoka|East Africa|Underlying Technology
Expertise||Africa|Exploration|LNG|Projects|Resources|SECURITY|Africa|Tanzania||Oil And Gas||||
expertise|perth|africa-company|ernst-young|exploration|lng|projects|resources|security|africa|argentina|australia-country|mozambique|spain|tanzania|united-states|gas-discoveries|gas-hungry-markets|natural-gas|oil|oil-and-gas|oil-and-gas-leader|recent-gas-discoveries|sufficient-gas|cristina-fernandez|dale-nijoka|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
Creamer Media Senior Researcher and Deputy Editor Online
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Energy News
All grades of petrol will increase by 47c/ℓ on Wednesday, the Department of Energy announced on Friday. The reef price for unleaded 93 and LRP petrol was currently standing at R12.61/ℓ, while unleaded 95 cost R12.89/ℓ.
Article contains comments
The Portfolio Committee on Mineral Resources on Thursday said it needed a comprehensive report, as well as insight into the relevant legislation, regarding hydraulic fracturing, or fracking, in South Africa. “This information will empower us to understand all the...
Article contains comments
The development of a clear climate framework and a global emissions target is essential if the $48-trillion to $53-trillion required for a new sustainable energy infrastructure is to be delivered, a new World Energy Council (WEC) report has stated. The World Energy...
Article contains comments
More
 
 
Latest News
All grades of petrol will increase by 47c/ℓ on Wednesday, the Department of Energy announced on Friday. The reef price for unleaded 93 and LRP petrol was currently standing at R12.61/ℓ, while unleaded 95 cost R12.89/ℓ.
JSE-listed Tower Property Fund has acquired the Link Hills Shopping Centre, in Waterfall, KwaZulu-Natal for R160.9-million from The Sabre Trust and Matlu Family Trust. The shopping centre, on Inanda Road, was situated in an upper-high-growth residential area, next to...
South Africa recorded a trade deficit of R2.51-billion ($207-million) in April from a revised shortfall of R9-million in March, data from the revenue agency showed on Friday. Exports fell by 7.5% to R84-billion, while imports were down 4.8% to R86.5-billion on a...
More
 
 
Recent Research Reports
Steel 2015: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2015 report provides an overview of the key developments in the global steel industry and particularly of South Africa’s steel sector over the past year, including details of production and consumption, as well as the country's primary carbon...
Projects in Progress 2015 - First Edition (PDF Report)
In fact, this edition of Creamer Media’s Projects in Progress 2015 supplement tracks developments taking place under the Renewable Energy Independent Power Producer Procurement Programme, which has had four bidding rounds. It appears to remain a shining light on the...
Electricity 2015: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2015 report provides an overview of State-owned power utility Eskom and independent power producers, as well as electricity planning, transmission, distribution and the theft thereof, besides other issues.
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.
 
 
 
 
 
This Week's Magazine
While strongly welcoming the promulgation of the new Part 101 of South Africa’s civil aviation regulations, governing the commercial operation of civil remotely piloted aircraft (RPAs) in South Africa, the Commercial Unmanned Aircraft Association of Southern Africa...
LSM Distributors has contracted engineering consultancy WSP | Parsons Brinckerhoff Africa to undertake the R100-million restoration of the 54-year-old Kyalami racetrack, situated in Midrand. The restoration will assist in re-establishing it as a venue for...
South African Defence Minister Nosiviwe Mapisa-Nqakula has expressed the hope that the defence budget will be significantly increased over the next five years. She did so while addressing the media in her recent budget vote media briefing. The 2015/2016 defence...
The African Development Bank (AfDB) has been an implementing agency for the Global Environment Facility (GEF) since 2008. The relatively young portfolio has 28 projects over 30 countries on the continent according to the 2014 AfDB and GEF annual report released...
PAUL SPEAR Training and development should be an integral and proportionate part of the long-term strategy of all companies, regardless of their size
Investment in South African youth through apprenticeships and learnerships will not only create direct benefits for businesses but will also contribute significantly to job creation and socioeconomic transformation in the country.
 
 
 
 
 
 
 
 
 
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
Subscribe Now for $96 Close
Subscribe Now for $96