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Oz urged to slash LNG red tape



By Upstream staff 

Australia needs to cut red tape and speed up its approval and regulatory process to help quicken the start up of the 11 proposed liquefied natural gas projects in the country, the country’s main petroleum industry lobby group said.

Streamlining the approval process will help Australia to triple its LNG production to between 50 million and 60 million tonnes by 2020 to become one of the world's largest gas exporters, the Australian Petroleum Production and Exploration Association (APPEA) said yesterday.

"The approval process and government regulations are key issues for the industry and for countries operating in federalism," APPEA chief executive Belinda Robinson told reporters ahead of a three-day conference hosted by the group, Reuters reported.

"We have seen for too long competitive federalism paralysing too many projects and we have seen crucial projects requiring 163 different division points."

Woodside Petroleum, Australia's second-largest oil and gas producer, needed to engage 90 staff just to navigate through the government approval process for its A$12 billion (US$11 billion) Pluto LNG project, Robinson said.

APPEA said the government had last week agreed to commission a team to review the regulatory process of upstream oil and gas projects following an appeal made by the industry.

Australia, which has massive onshore and offshore gas resources, currently has two operating LNG projects producing about 15 million tonnes of LNG a year. A fifth-train expansion of the North West Shelf Venture, operated by Woodside Petroleum, will increase total output to about 20 million tonnes by 2009.

APPEA said Australia, which is facing declining oil production, also needs the government to give higher concessions and provide better geological information to encourage exploration in new frontiers.

Better geological information on new exploration territories would also help companies reduce cost of finding oil and gas, said APPEA chairman Colin Beckett.

"We are trying to reduce the rate of failure. So the more we can do to better understand the areas we drill, the better off we are," said Beckett, who is also general manager of the Greater Gorgon area at Chevron's Australia unit.

Australian spending on offshore oil and gas exploration jumped 70% last year to a record because of surging costs and equipment shortages, APPEA said.

Investment in the hunt for oil and gas in waters around Australia surged to A$2.14 billion, while spending including onshore drilling rose about A$1 billion to A$2.66 billion even as the number of wells fell.


Monday, 07 April, 2008, 03:52 GMT  | last updated: Monday, 07 April, 2008, 04:49 GMT

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