OIL AND GAS FIELD MACHINERY
Australia
Overview
| x | 2004 | 2005 | 2006 |
| Total Market Size | 2080 | 2190 | 2450* |
| Total Local Production | 1814 | 1850 | 1920* |
| Total Exports | 325 | 328 | 319* |
| Total Imports | 591 | 668 | 849* |
| Imports from the U.S. | 139 | 200 | 254* |
All amounts are in USD $ millions
Exchange rate:
2004 0.73
2005 0.76
2006 0.75
* Estimated based on industry information
Australia continues to be a good market for U.S. oil and gas equipment suppliers and service providers, making this sector a best prospect for U.S. companies. Increasing demand for petroleum products (particularly LNG) is fuelling the exploration, development and production of both existing and new fields across Australia. The future is looking bright for the industry with all companies reporting increasing levels of activity in the coming year. Increased interest in gas is resulting from several factors – increased energy consumption from by regional importers (Japan, Korea and China), as well as increasing pressure on power generators to user gas as a cleaner alternative to burning coal.
Australia is a net consumer of oil and gas equipment with much of the technology used in upstream and downstream projects being imported. Estimates of the annual market for this kind of equipment are around USD $2 billion, however this tends to be dependent upon the amount of project work scheduled in any particular year. U.S suppliers are well regarded by the Australian oil and gas industry given their reputation for product quality, safety and reliability.
At the time this report was prepared there were around $10 billion of projects under construction or about to be constructed. There is also ongoing modernization and refurbishment of existing infrastructure, some of which has been installed for nearly 40 years. There are also a large number of proposed projects in FEED including the Gorgon Gas project of the coast of Western Australia. Details of some of these future projects can be found in a later section.
Much of the interest in Australia at the moment is centered around the offshore gas industry. Whilst earlier project were confined to coastal shelves, the exploration and development has been extended into the deeper water around Australia. Technologies such as sub-sea connections, unmanned platforms and FPSO production are becoming more common in developments. As with many countries around the world, oil production in Australia peaked around 1998. Despite the very high level of interest in LNG, there is also likely to be interest in technologies which can prolong the life of wells or assist in the recovery of oil from older wells.
The coal seam methane industry located on the eastern coast of Australia is another fast growing segment of the industry – having grown from around 20TJ/day in 2000 to current production of around 150 TJ/day. The industry expects growth to continue with forecast of an industry producing more than 300 TJ/day in 2010.
Best Products/Services
Opportunities
Aside from the projects already under construction the following list provides some basic information on proposed major oil and gas projects including the estimated project costs.
|
Proponent |
Project | Location | Estimated Capital Expenditure |
Status |
|
DBP Group |
Dampier-Bunbury Pipeline – stage 5 |
Dampier – Bunbury (720 miles) |
1,125 |
Construction of first part of stage 5 expected in 2007 for completion in 2008, second part of stage 5 may be delayed |
|
Chevron |
Gorgon Gas |
100 mile SW offshore of North West Shelf |
9,000 |
Project is going through final environmental approvals in the coming months. |
|
Woodside |
Pluto Gas Field |
120 mile offshore NW Karratha, WA |
3,800 |
FEED has commenced targeting FID date in mid 2007, first production aiming at 2010 |
|
Methanol Australia |
Tassie Shoals Methanol Project |
Timor Sea, 110 mile north of Australia |
1,300 |
Some pre-feasibility work has been done, project is seeking farm-in for upstream gas, expected completion phase 1 is 2010 |
|
BHP Billiton |
Pilbara LNG Plant + Scarborough Gas |
170 mile NW offshore of North West Shelf |
3,000 |
Still in planning stage with investment decision some time off, anticipated construction completion date 2011 |
|
Inpex |
Ichthys Gas |
170 mile offshore of Broome WA |
4,800 |
Newly announced project in pre-feasibility. Possible gas delivery in 2012 |
|
Woodside |
Sunrise |
275 mile NW of Darwin |
3,800 |
Project is still on hold pending resolution of the maritime boundary between Australia and East Timor |
Resources
Trade Events:
AOG 2007 / AUSTRALASIAN OIL & GAS
Date: 21-23 February 2007
Location: Perth Convention & Exhibition Centre, WA
Website: http://www.swanexhibitions.com.au/aust/
APPEA CONFERENCE & EXHIBITION
Date: 15-18 April 2007
Location: Adelaide Convention Centre, South Australia
Website: http://www.appea2007.com.au/
SOUTH EAST ASIA OFFSHORE CONFERENCE
Date: 30 May – 1 June 2007
Location: Holiday Inn Esplanade, Darwin, NT
Website: www.seaaoc.com
Trade Associations:
Australia Institute of Energy – www.aie.org.au
Australian Petroleum Co-operative Research Centre - www.apcrc.com.au
Australian Petroleum Production and Exploration Association - www.appea.com.au
Australian Pipeline Industry Association - www.apia.net.au
Geosciences Australia - www.ga.gov.au
U.S. companies seeking information on the Australian oil & gas industry are encouraged to contact John McCaffrey at the U.S. Commercial Service in Melbourne
(email: john.mccaffrey@mail.doc.gov ).