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Americans invest money, bring technology and share lessons in Australia's shale field
The Beetaloo Basin developers in Australia are bringing U.S. equipment and money to the project. They also hope that U.S. scale and efficiency will help reduce costs and make it economically viable. Beetaloo, which produced its first gas in this month, has been compared to the Marcellus Shale in the U.S. However, its remoteness in the Northern Territory will require billions of dollars in order to build pipelines. If the development is successful, it could provide a new supply of LNG to Asia. But first well costs need to be reduced by up 60% in a part of the world that lacks infrastructure and supplier networks like mature U.S. basins. Canberra's new gas policies also pose a challenge to the Territory, even though it is investing in a project, which developers hope will produce 1,000 terajoules per day, enough for two LNG trains. Todd Abbott, Tamboran Resources' CEO and a Texan who has worked in the U.S. shale-gas patch for many years, stated that "this is the most supportive government I have ever worked with, and this includes Texas" during the last week's ceremony where a first?40 terajoules gas was shipped to Darwin. After a decade in which Australia has increased its energy regulations, the industry is wary. 2 LNG exporter. The Australian-based company Tamboran is backed by the fracking service firm Liberty Energy founded by U.S. Energy Sec. Chris Wright and U.S. oilfield service giant Baker Hughes. Helmerich & Payne, a U.S. company, has imported high-powered rigs. LESSONS LEARNED Beetaloo's developers are hoping to avoid the mistakes made by some U.S. developers who put drilling before sales. Tamboran is focusing its initial gas sales on determining well decline rates and the performance of reservoirs before investing in larger-scale development. The company has spent approximately A$1 billion (722 million dollars) so far on exploration and appraisal drilling. Stephanie Reed, Chief Operating Officer?of Texas based Formentera Partners told an industry conference held in Darwin recently: "We have avoided much of what we did back in the U.S. by focusing only on the right things. We focus on cash flow and EBITDA. Formentera plans to drill its own acreage next year in the basin. It has a stake in Tamboran’s “Beetaloo” project. Controlling Costs The Beetaloo has a much higher cost of drilling and completion than mature U.S. Shale Basins. Rami Yassine of U.S. oilfield service giant Halliburton's Eastern Hemisphere said that U.S. rig usage had dropped 30% due to increased efficiency. For the basin to achieve its full potential, industry executives estimate that well costs need to fall by 40-60%. Part of this effort is to develop local sand supplies for hydraulic fracturing. Operators reported an improvement of?roughly 25 percent in the efficiency of completion between Beetaloo drilling campaigns. One service provider claimed continuous drilling could reduce rig costs up to 30%. Industry players say that expanding local workforce and supplier capacity will boost project economics because it reduces the need for transporting equipment and materials long distances. Halliburton’s Yassine stated, "Today we are in a phase of the Beetaloo Basin where we must collaborate as an industry."
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Why the funding request for Air India has been scrutinized by Singapore politicians
Air India's request to its owners, Tata 'Sons' and Singapore Airlines, for $1.5 billion has sparked debate in Singapore about the exposure of state-owned Temasek to Indian carriers. A government minister claimed that the news about the funding request had led to anti-Indian abuse on the internet, and asked the police to investigate the comments. Here are?the?key facts: AIR INDIA REQUEST FOR FUNDING Air India approached India's Tata Group as well as Singapore Airlines to discuss equity funding. This comes after Air India and its budget airline posted a record-breaking annual loss of 2,33 billion dollars last month. Singapore Airlines, which is majority owned by Temasek and is also majority-owned itself by the state, owns 25.1% of Air India. It has taken a share in the losses of the Indian airline. Why has the request sparked political scrutiny? Kenneth Tiong, a lawmaker from the Opposition Workers' Party, said on social media a day following a report that Temasek funds shouldn't be used to support Air India through Singapore Airlines. Temasek is a Singaporean flag carrier that owns, manages, and holds its own assets. Its reserves are part of Singapore’s national reserves. Singapore Airlines was defended by the government in Parliament on Tuesday. Transport Minister Jeffrey Siow stated that investment decisions belong to the board of Singapore Airlines and that Singaporeans are not paying for Air India's investment. Siow said that Singapore Airlines has not asked for additional capital from its shareholders. Air India and Tata did not publicly comment on the funding request. WHAT HAS TEMASEK AIRLINES AND SINGAPORE RAILWAYS DONE? Temasek said that it viewed Singapore Airlines' investment in Air India as a long-term decision and supported it. Singapore Airlines said on Tuesday that it will continue to fund its investments in India with internal resources. This is subject to approval by the board and a capital allocation framework. The stake was described as a 'long-term strategic commitment' aligned with the multi-hub strategy. Why has it been racist abuse? Senior Minister K. Shanmugam stated over the weekend, that the news of the funding request prompted anti-Indian abuse on the internet. This included suggestions that Temasek Chief Executive Dilhan Pillay Sandrasegara preferred Air?India due to his Indian ethnicity. Shanmugam said that such remarks were libellous, and that the CEO is as Singaporean as any other Singaporean. Temasek has not responded to a comment request. Shanmugam stated that he had asked the police to investigate these?comments, and separate remarks regarding Singaporeans missing abroad in flash floods. Prime Minister Lawrence Wong also condemned this abuse and said that even arguments that seem to be legitimate should not be used to cover prejudice or hostility against foreigners or any other community.
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GE Aerospace buys castings manufacturer CPP for almost $12 billion
GE Aerospace announced on 'Tuesday that it will purchase Consolidated Precision 'Products, a castings supplier from investment firms Warburg Pincus & Berkshire Partners - for $11,75 billion. The aerospace giant is aiming to bolster its own manufacturing. As demand for aircraft and spare parts and new orders continues to be strong, engine makers are racing to increase production and reduce supply-chain risk that has constrained production. This deal could allow GE Aerospace to gain greater control of a source for precision castings that are used in 'jet engines. Larry Culp, CEO of Culp Industries, said that "investing in mission critical casting capacity" is necessary to meet the high demand across commercial engines and aftermarket as well as defense. By combining GE Aerospace’s technology?capabilities?and flight deck with CPP’s manufacturing expertise, we expect to?expand capacity, improve performance & accelerate new engine technologies for current fleet & next-generation platforms. CPP is a leading producer of precision and investment sandcastings for aircraft, helicopters and weapon systems. The company employs 6,600 people in more than 20 locations worldwide. It has been a GE Aerospace supplier for more than 15 year. The deal is expected to increase GE Aerospace’s adjusted profit per share in the first year. GE Aerospace pays the equivalent of 26x CPP's core profit in 2027, excluding integration benefits. The deal values CPP at 18x its projected 2027 EBITDA (earnings before interest, tax, depreciation, and amortization). In premarket trading, its shares were mostly flat.
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Africa50 Infrastructure Fund plans to double project value within five years
Africa50, an infrastructure investment fund based in Morocco, wants to "more than double" the value of projects it backs over the next 5 years to $20 billion, according to its chief operating officer. The fund was established by African leaders in 2015. It has invested in 36 projects in the power, transportation, logistics, and other sectors. These projects have a total value of $9 billion. In an interview conducted on Monday, Tshepidi Mostmong, the COO of the Casablanca fund, stated that they were "looking to at least double or triple this number in terms of value." Moremong said that Africa50 has invested around $500 million in equity for these projects. The company plans to concentrate on sectors where there are significant funding gaps, such as power generation and transmission. Moremong stated that he would like to see a total of $20 billion in projects, co-invested with the fund for the next five year period. Africa50 and India's PowerGrid signed a partnership agreement in December to build high-voltage electricity lines worth $311 million as part of a public/private partnership. The fund also invested in power generation projects, ICT projects, and regional healthcare businesses in Rwanda, Egypt, Nigeria, Cameroon, and Madagascar. According to the African Development Bank, Africa has a?annual infrastructure financing gap? of more than 100 billion dollars. This shortfall is exacerbated due to declining funding for overseas development from wealthy countries. Africa50 operates also a?model under which it leases?and runs infrastructure?assets while providing upfront payments to governments. It has signed a contract to operate the Senegambia Bridge linking Senegal with Gambia. Tolls will be collected in exchange for maintenance and upgrades of the bridge, as well as lump-sum payments. Moremong stated that this business line could account for up to a fifth of Africa50’s portfolio.
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Hanwha South Korea seeks damages of $1 billion from Russia's Arctic LNG 2.
Hanwha Ocean, a South Korean shipbuilder, has disclosed that Arctic LNG 2, an liquefied?gas project headed by Russia's Novatek, wants to recover about $1 billion from the company for canceled?tanker contracts. Arctic LNG 2, owned 60% by Novatek, had been expected to be one of Russia's biggest LNG?plants with a planned output of 19,8 million metric tonnes a year. The U.S. sanctions over Russia's actions against Ukraine have complicated the prospects of Arctic LNG 2. Novatek started production at Arctic LNG on December '2023, but the first cargo deliveries, to all end-users in China, didn't begin until August?2024. Hanwha Ocean (formerly Daewoo Shipbuilding & Marine Engineering) had agreed to build six Arc7 tanksers for the project. Three of these tankers will be built for Russia's Sovcomflot, and three for Japan Mitsui O.S.K. Lines. Hanwha had previously stated that the three tankers ordered from Sovcomflot by Hanwha were "cancelled" because of sanctions against Russia. Hanwha announced in a 'disclosure' dated September 3 that Arctic LNG 2 filed a claim at the Singapore International Arbitration Centre relating to a shipbuilding agreement that was terminated. The total claim is 1.37 trillion won, which is equivalent to about $1.02 billion. Novatek didn't immediately respond to a comment request.
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Americans invest money, bring technology and share lessons in Australia's shale field
The 'developers' of Australia's Beetaloo Basin have brought in U.S. money, equipment, expertise, and, they hope, U.S. scale and efficiency to'reduce costs' and make Australia's first shale-gas project economically viable. It is often compared to the Marcellus Shale in the U.S. because of its abundance, but the fact that it is located in the Northern Territory, means that billions of dollars are needed to build the pipelines. If the development is successful, it could provide a new supply of LNG to Asia. But first, well costs need to be reduced by up 60% in a part of the world that lacks infrastructure and suppliers networks like mature U.S. basins. It also faces challenges due to Canberra's new gas policies, even though the Territory government is investing heavily in a project which developers hope will produce?1,000 Terajoules per day, enough for two LNG trains. Todd Abbott, Tamboran Resources' CEO and a Texan who has worked in the U.S. shale-gas patch for many years, stated that "this is the most supportive regime, government, I've worked 'under" and this includes Texas, during the ceremony held last week, where a first 40 terajoules?gas were sent to Darwin. After a decade in which Australia, the No. 2 LNG exporter in the world, has increased its energy regulations, industry caution is evident. 2 LNG exporter. The Australian-based Tamboran has the backing of?fracking service firm Liberty Energy founded by U.S. Energy Sec. Chris Wright and U.S. oilfield service giant Baker Hughes. Helmerich & Payne, a U.S. company, has imported high-powered rigs. LESSONS LEARNED Beetaloo's developers are hoping to avoid the mistakes made by some U.S. developers who put drilling before sales. Tamboran's first gas sales are aimed at understanding the well decline rate and reservoir performance, before investing in larger-scale development. The company has spent approximately A$1 billion (722 million dollars) so far on exploration and appraisal drills. Stephanie Reed, Chief Operating Officer of Texas-based Formentera Partners, said at a recent conference in Darwin, "We have already avoided a lot of the mistakes we made in the U.S. by focusing only on the right things. We focus on cash flow and EBITDA" (earnings prior to interest, taxes, amortisation, depreciation, and amortization). Formentera plans to drill on its own acreage next year. It has a stake in Tamboran’s Beetaloo Project. Controlling Costs It is true that drilling and completion costs in the Beetaloo are significantly higher than in mature U.S. Shale basins. Rami Yassine of U.S. oilfield service giant Halliburton's Eastern Hemisphere President?said that U.S. drilling rig usage had dropped 30% due to improved efficiency. According to industry executives, the cost of drilling wells must drop by 40-60% for the basin's full potential to be realized. Part of this effort is to develop local sand supplies for hydraulic fracturing. Operators reported an improvement of?approximately 25% in completion efficiency when comparing Beetaloo drilling campaigns. One service provider claimed that continuous drilling could cut rig costs by up to 30%. Industry players say that expanding local workforce and supplier capacity will boost project economics because it reduces the need for transporting equipment and materials long distances. Halliburton’s Yassine stated, "We are in a phase of the Beetaloo Basin where we must collaborate as an industry."
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German police arrest suspects after sabotage attack on power grid
Prosecutors said that German police detained a man aged 48 suspected of carrying out a series of sabotage attacks against the electricity grid in Germany. After a manhunt, the suspect was arrested near Weisweiler Power Plant, 50 km (30 miles) west of Cologne. The search began when authorities received letters from three German states claiming responsibility for attacks against electricity substations. The police said that the suspect was carrying additional explosive devices at the time of his arrest and did not fight. Officers found explosive charges in a tent nearby. On Tuesday, investigators continued to collect evidence at the scene and checked whether any other launch devices had been placed in the area. German police have been looking for the suspect ever since they received letters sent to authorities and media, claiming responsibility for several sabotage attempts on 'the power grid. In these letters, he claimed opposition to fossil fuels.
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Liverpool signs sponsorship agreement with Turkish Airlines for five years
The Anfield'side has agreed a five year deal with Turkish Airlines to become its main club partner from 1 June 2027. This is the first time since 2010 that Standard Chartered was their shirt sponsor. According to media reports the deal announced Tuesday is worth more than PS300 million ($405.78 millions), which would make it one of the most lucrative deals in the Premier League. The exact figures are not yet confirmed but it is expected to be similar to the income generated by Manchester United's shirt sponsoring deal with Qualcomm that was signed in August 2024. Standard Chartered is still a Global Partner of?Liverpool, according to a statement from the club, but Turkish Airlines takes over as the main sponsor for Liverpool's brand. Ben Latty, Liverpool's chief commercial officer, said: "The front of our shirt has a special significance in the club's history." Turkish Airlines has an international network and is well-recognised. We look forward to building a strong partnership with them, on the foundations of those fond memories from 2005, when Liverpool won the Champions League final in Istanbul. Turkish Airlines is a main sponsor of Turkey’s national football team and an official partner of Champions League. This deal will add to their growing portfolio of sponsorships within the sport.
Equinor: Diversifying German gas supplies ensures imports but at a cost
Germany's gas storage levels are at an all-time low. The country will be able to get the gas it needs this winter, but should prepare for high prices, said a senior executive from Norwegian energy producer Equinor on Tuesday.
Irene Rummelhoff of Equinor, the head of marketing, midstream, and processing in Oslo, said that Germany's diversification since 2022, when it lost Russian pipeline supplies to Germany, was "super important".
Rummelhoff said to the German-Norwegian energy executives that even though your stores are empty, you will still be able to import and attract enough.
Norway has been Germany's largest gas supplier since?2022. The majority of the gas is delivered via a vast pipe system. Germany also built several LNG import terminals.
Gas storage sites are only 53% filled in Germany, the lowest level in 15 years. The country could face shortages if the winter is very cold, according to the storage industry group INES.
Prices?will be a major issue. "You need to be prepared for that but diversification is good," Rummelhoff stated.
The European benchmark gas contract for delivery in the first month at 'the Dutch Title Transfer Facility' (TTF), is currently trading at its highest level since January 20,23.
The price of LNG has risen rapidly over the past few weeks due to the fact that the "war" between the United States (US) and Iran is preventing Qatari LNG exports through the Strait of Hormuz. This increased competition for LNG between Asia and Europe.
(source: Reuters)