http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.00Change: 0.12
R/$ = 12.03Change: 0.26
Au 1182.60 $/ozChange: -3.20
Pt 1138.50 $/ozChange: -2.00
 
 
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|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
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Energy News
The petrol price will increase by R1.62/ℓ next week, while diesel would increase by R1.24/ℓ, the Department of Energy (DoE) revealed on Friday. The DoE said the adjustment was based on local and international factors.
The agricultural sector has a key role to play in a green economy, which incorporates both an environmental and social dimension, notes Council for Scientific and Industrial Research (CSIR) senior researcher and/or leader of the Agricultural Green Economy Project Dr...
The long-term outlook for Nigeria is a country that has the potential to be very strong. So affirmed International Monetary Fund (IMF) Nigeria Mission Chief and Senior Resident Representative Dr Gene Leon on recently. "But we are starting from a point of huge...
More
 
 
Latest News
The government of St Helena (SHG) and its Department for International Development (DFID) on Friday appointed airline Comair as the provider of air services to St Helena with the Island’s first airport opening in 2016. Comair would offer a weekly Saturday service,...
The Department of Communications (DoC) digital terrestrial television (DTT) project team was accelerating its efforts to “revive” South Africa’s long anticipated transition from analogue to digital broadcasting. After a more than six-year delay, the next few weeks...
Paul-Roux de Kock
Residential property prices are forecast to grow at 7.2% this year, on the back of 6.72% growth in 2014.
More
 
 
Recent Research Reports
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.
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...
 
 
 
 
 
This Week's Magazine
Projected capital expenditure (capex) in the South African automotive assembly industry should reach a record R7.48-billion this year, says the National Association of Automobile Manufacturers of South Africa (Naamsa) in its 2014 fourth quarter business review. Capex...
After several years of navigating project-threatening red tape and currency fluctuations, the 4.4 MW Bronkhorstspruit biogas power plant, which will supply clean energy to a leading automotive manufacturer in Gauteng, is expected to enter production before June....
RESOURCEFUL The raw material for the pilot plant would be supplied from the dissolving wood pulp plants at Sappi’s Saiccor and Ngodwana mills, in South Africa, and the Cloquet mill, in the US
South African paper and pulp producer Sappi reported earlier this month that it would build a pilot plant for the production of low-cost Cellulose NanoFibrils, or CNF (nanocellulose) at the Brightlands Chemelot Campus in Sittard-Geleen in the Netherlands.
The long-term outlook for Nigeria is a country that has the potential to be very strong. So affirmed International Monetary Fund (IMF) Nigeria Mission Chief and Senior Resident Representative Dr Gene Leon on recently. "But we are starting from a point of huge...
Poor infrastructure planning and inadequate maintenance are becoming increasingly problematic for new developments and the associated infrastructure required to support such developments. In many urban and rural municipalities, the state of infrastructure has been...
 
 
 
 
 
 
 
 
 
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