@redbackrules, re
Post #:79463856Thank you, and apologies for the late response, due to a death in the family.
Here's some of my recent thoughts on QPM as we await the TPS re-start:Alongside the new Federal government’s approval to extend Woodside’s North West Shelf project for four decades, two pieces of recent news indicating both industry and government are taking gas production in the energy transition more seriously, with highlighted implications for QPM:
• Westpac is shifting its climate targets and easing the path for more lending to gas (AFR May 29)
The bank will extend requirements for credible, Paris Agreement-aligned energy transition plans to customers in the metallurgical coal and coal-fired power generation sectors. Wild said that Westpac would work with borrowers without a credible plan. “If there isn’t an opportunity to work with them, then that potentially, means we wouldn’t be able to provide future funding to them”QPM all over that sub-text!
• This weeks largest ever Australian cash takeover offer for Santos by Abu Dhabi state owned oil company (Fairfax, June 21).
And what would the Santos suitors make of Australia’s comical industry, where operators get a lot of their gas royalty-free from Australians and then make a fortune selling it back to them as global prices surge?
This ties in with the Fed’s Future Gas Strategy notes:
As gas production in Commonwealth waters and processed in Victoria reaches end of life, the ability to move gas from where it is produced in the north to where it is needed in the south, is becoming increasingly necessary. Gas pipelines are already a critical feature of Australia’s gas infrastructure, but have capacity limits. Gas storage plays an increasingly important role, particularly during high-demand periods in winter, and import terminals may play a role in the future. However, as observed earlier, gas from LNG import terminals may be more expensive than gas extracted closer to demand centres.
The QLD and VIC governments have been at loggerheads over this north to south supply
AFR, Jun 13:
But Queensland Natural Resources Minister Dale Last told AFR Weekend his state would refuse to divert further supply and blamed the critical energy constraints on the Victorian Labor government’s refusal to back new gas projects. “Queenslanders should not be penalised over unscientific decisions down south that favour ideology over economics and engineering,” he said.“We don’t have the pipeline capacity to keep bailing out Victoria’s bad decisions. The solution to the southern state gas crisis is for the southern states to develop their gas reserves. We’re not asking them to do anything we haven’t done ourselves.”Bit disappointing that the states can’t work together and find a non-import terminal / unpopular expansion of traditional gas drilling, such as splitting costs on duplicating/expanding the N-S pipeline, and harnessing more waste gas from existing met coal mines (hello QPM Energy).
Perhaps keep an eye on Dale's ministerial diaries:
https://cabinet.qld.gov.au/ministers-portfolios/dale-last.aspx
As far as I can tell, he's met with other industry players, but not yet with QPM.
Our two biggest customers Dyno Nobel and Glencore are having trouble in the north-west:
May 12, AFR: Dyno Nobel chief executive Mauro Neves said the company’s Phosphate Hill plant 140 kilometres from Mount Isa was at risk of closure due to high gas prices driving up the costs of the energy-intensive process of making the fertiliser that is commonly used for food crops across the country.
Jun 20, Mining.com: Glencore (LON: GLEN) has declared its Mount Isa copper smelter unviable and is awaiting a response from Australia’s federal and Queensland’s governments regarding requests for financial assistance to keep the facility running. The mining and commodities giant blamed “unprecedented smelting market conditions,” high energy, gas and labour costs, and a shortage of copper concentrates for the smelter’s unsustainable position.
They don’t have any such concerns apparently with their QPM/MGP- supplied operations! Opportunities?
Happy, healthy and kind Sunday to all!
(20min delay)