Latest news with #gasindustry
BBC News
2 days ago
- Health
- BBC News
Sepsis warning after Newport man nearly died from popped spot
A man who nearly died from sepsis after popping a spot on his neck is warning others about the dangers of the potentially deadly Mullins, 24, from Newport, was at home watching TV when he noticed a pimple on his neck and popped less than a day the spot had turned into an abscess and he soon developed sepsis, requiring emergency hospital treatment and two Mullins, who believes he is fortunate to be alive, wants others to be aware of the signs and symptoms of sepsis, which can be hard to recognise. "I enjoy popping spots - and when I popped it, it was just a normal spot," said Mr Mullins, who works in the gas industry."[But] within a few days it grew into quite a large abscess."Mr Mullins said he then started to show signs of sepsis. "I was very lethargic, I was quite out of it, I didn't really know what was going on," he went to see his GP and was then rushed by ambulance to the Royal Gwent Hospital in Newport, where he had surgery to drain the abscess and was given intravenous antibiotics to fight the sepsis. But the wound was still infected a week later, so Mr Mullins was rushed in for more surgery."I was very close to potentially not being here," he said doctors told him that "the way he popped the spot", combined with other medical issues, had caused his immune system to "go into overdrive"."Popping the spot triggered the infection - which caused the sepsis," he said."Where the spot was popped, that's where it decided to attack." What is sepsis? The NHS describes sepsis as a life-threatening reaction to an infection, which happens when the body's immune system overreacts to an infection and begins to damage tissues and cannot catch sepsis from another person, and symptoms can be difficult to spot as they may appear similar to the symptoms caused by other conditions, including flu or a chest more: What is sepsis? What are the symptoms? Although the incident happened when Mr Mullins was 17, he now wants to raise awareness of the condition."I knew absolutely nothing [about sepsis]," he said."I had no clue what it was, I had never heard of it until I had it."Doctors told Mr Mullins, who is an amateur footballer, that his fitness levels had helped him to survive."If I wasn't as fit, I could have been dead," he said. "I would definitely encourage people to learn about it and educate themselves because it could be life-saving," he added."If I [now] see something that could potentially be infected, the first thing that will come to my mind is sepsis."I realise how lucky I am to still be here."
ABC News
01-07-2025
- Business
- ABC News
Can Albo fix our 'messy' gas market?
Anthony Albanese has been doing the media rounds, spruiking his Government's cost of living measures as the new financial year begins — but can he really take claim for them all? And as the ACCC warns of a gas shortfall, the Government has launched a review into the rules governing the gas industry and there's increasing speculation a gas reservation scheme could be on the table. So, will that help resolve the "hodge podge" regulation in the gas system? Patricia Karvelas and Mel Clarke break it all down on Politics Now. Got a burning question? Got a burning political query? Send a short voice recording to PK and Fran for Question Time at thepartyroom@
ABC News
25-06-2025
- Business
- ABC News
As gas use declines, pipeline companies are shifting extra network costs onto consumers
Clare Savage might be reluctant to acknowledge she is something of a veteran of Australia's energy industry. But for more than 20 years, she has held senior positions within it, including the past six as the chair of the industry's top watchdog — the Australian Energy Regulator (AER). During that time, many things have transformed. Governments and ministers have come and gone, policies have chopped and changed, and the very mix of Australia's biggest electricity system has been radically reshaping. There has also been another, fundamental shift in Australia's energy landscape. Australian households are using less gas, with some getting off the fuel entirely. When it comes to the business of gas pipelines — how much they are worth, how they are regulated, who pays for them and how — Ms Savage says this trend changes everything. "The whole gas regulatory framework was built upon the belief that you would have a growing network," Ms Savage says. "And so all of the tools that we have, or most of the tools that we have, are founded on the belief that we'll have a growing network and that sharing the fixed costs of a network amongst a growing customer base is the best possible thing to do." Indeed, official and unofficial forecasts show declines to varying degrees in the number of customers connected to Australia's various gas networks. According to the Australian Energy Market Operator (AEMO), the body which runs the country's power and gas markets, a tipping point is at hand. The agency forecasts the number of household and business customers connected to gas networks is set to fall from almost 5 million now, to barely 4 million by 2030. AEMO says this number will collapse to as few as 1.5 million by the middle of the 2040s. Experts says a precipitous decline in gas connections will completely break the model used to regulate the networks. Under that model, gas pipeline owners are able to recover the huge cost of buying or building their networks — plus a profit margin — by charging a "fair" price to everyone connected to the network. How those prices are set, and the way they are apportioned to consumers, is determined by regulators. Ms Savage says the model had always been based on the notion there would be more customers joining the network. Courtesy of that assumption, she explains there are cross-subsidies that have helped keep costs low and encouraged ever more connections. Among them is a subsidy — paid by all existing users — that makes the cost of a new connection artificially low. Ms Savage says this way of regulating the industry and allowing pipeline owners to get their money back had worked relatively well — while the number of connections grew. "Then when we find ourselves with a customer base that might be changing or shifting or shrinking through time, we find that we've got less tools available," she says. "From that perspective, it makes the job harder." Faced for the first time with falling connection numbers, regulators including the AER are turning to novel ways of determining a "fair" price for owners and consumers alike. One of those tools is increasingly in vogue — and increasingly controversial. It is called accelerated depreciation and refers to the accounting treatment in which a company is able to fast-track the process of writing down the value of an asset. Crucially, by writing down the value of the asset in this way, the owner can pass on the cost to the consumer. And the costs can be considerable — hundreds of millions of dollars for the business and hundreds of dollars for individual consumers over a five-year period. While consumer groups have railed against its increasing use, retailers are not happy, either. Jeff Dimery is the longstanding boss of Alinta Energy, which is one of Australia's biggest electricity and gas providers. Mr Dimery says he can understand the arguments for accelerated depreciation — he just does not think gas companies should be allowed to write down their assets so quickly. "We would certainly encourage regulators to consider and to revisit accelerated depreciation on the basis of how smooth and how quickly this transition to a low carbon economy is actually occurring," Mr Dimery says. "We've been on the public record saying that we think the transition is behind schedule. For his part, Mr Dimery questions whether people will disconnect from the gas network as quickly or in as many numbers as authorities are forecasting. He notes that in some cases, pipeline owners are seeking to bring forward the lifetimes of their assets dramatically. However, he thinks the transition away from gas will happen more gradually. And for industrial customers that rely on gas to make their products, he says the shift could take many decades. As such, Mr Dimery says pipeline companies' depreciation claims should be treated with caution. "I think an important element of that also then needs to be the pace of change and this transition," the Alinta CEO says. "Let's not run down the hill here and stumble, let's walk down the hill and get it right. "And if that means that we take a longer-term view of these assets and there's a slightly slower transition and that eases the burden on consumers during a cost-of-living crisis, we don't think that's a bad thing." Ms Savage insists the AER is taking a tough approach. She points out that, collectively, pipeline owners have asked for as much as $800 million in accelerated depreciation. But she says the regulator has barely given them half of that. "We are, of course, balancing the needs of network businesses and consumers," Ms Savage says. "That's our job." Pipeline companies are sticking to their guns. Australian Pipelines and Gas Association chief Steve Davies says falling gas use is a real issue for owners, particularly distribution networks that service smaller customers like households. Mr Davies notes pipelines are typically built to last at least 40 years and there was little doubt that much could — or would — change in that timeframe. He says pipeline companies are not seeking to price gouge or generate windfall profits but simply recover their costs in a reasonable way and within a reasonable time. "We need to encourage infrastructure investment in Australia," Mr Davies says. "The regulator sets those rates of returns. They are acceptable and in line with the risk associated with investing in utility infrastructure, which is fairly low. "But we are talking about the recovery of the money that has been put into these infrastructure assets and that is a separate question from the rates of return which you achieve when you invest in the assets. "So there's return of capital and return on capital." Mr Davies argues the use of accelerated depreciation reflects the fact the regulatory system for gas pipelines was not designed for the circumstances it now faced. To that end, he suggests a broader shake-up of the system is needed. "In this changing environment, this is a challenge that hasn't been faced in Australia before," he says. "It is a fundamental question that needs to be managed properly." On this point, Ms Savage from the Australian Energy Regulator firmly agrees. Ms Savage says the watchdog was among the first of its global peers to recognise the implications for regulators of the shift away from gas. Chiefly, she says, the trend risks saddling an ever diminishing group of users with the full cost of building and maintaining a vast and expensive network of gas pipelines. Worse still, she says many of those household users who will be left picking up the tab are those unwilling or unable to get off gas and electrify. She says the regulator will continue to "use the tools we have available under the current … framework". Ultimately, though, it would like to see a revamp in the way the industry was overseen. "Our job is to worry about not just the consumers we have today, but the consumers we're going to have in 5, 10, 15 and 20 years' time, and 50 years' time," Ms Savage says. "How much should a connecting customer pay to the gas network? "What kind of contribution should a new customer make towards the assets that are being invested in on their behalf? "We think that's a really interesting and very important question to get to the bottom of."
News.com.au
16-06-2025
- Business
- News.com.au
Santos' $30bn Abu Dhabi takeover could put Queensland gas juniors in the fast lane
Santos plans to accept an $8.89 per share cash takeover offer from an Abu Dhabi-led consortium Acquisition could charge up interest in Queensland's gas assets to top up resources for LNG export Junior companies operating in the state could also become more attractive for corporate activity Shares in Santos (ASX:STO) – Australia's second largest gas producer – surged 11% to $7.72 on Monday after it received a non-binding indicative takeover offer from a consortium led by Abu Dhabi National Oil Company subsidiary XRG valuing it at close to $30bn. The cash offer of US$5.76 ($8.89) per share from the consortium, which also includes Abu Dhabi Development Holding Company and Carlyle, represents a 34% premium to the one-month volume weighted average price of $6.61. It is also expressed as a 'final non-binding indicative offer', with STO noting that it follows two confidential, non-binding and indicative proposals from the consortium of US$5.04 per share on March 21, 2025 and another of US$5.42 per share on March 28, 2025. Subject to reaching agreement on acceptable terms of a binding agreement, the Santos board plans to unanimously recommend shareholders vote in favour of the transaction. Morgans energy expert and deputy head of research Adrian Prendergast certainly agrees, telling Stockhead the $8.89 per share bid was a fair starting point as it valued Santos at around 5.5 times its EBITDA (earnings before interest, taxes, depreciation, and amortisation). 'The offer covers Santos' entire business, but the strategic aim is quite clearly to secure long-dated LNG export capacity as ADNOC seeks to diversify its portfolio,' he added. Santos' 30% operated Gladstone LNG plant in Queensland has two trains capable of producing 7.8 million tonnes per annum of supercooled natural gas for export – most of which is under long-term contracts. Lowell Resources Fund (ASX:LRT) chief investment officer John Forwood flagged the potential for Australia's Foreign Investment Review Board to block the bid, though this might just clear the way for Woodside Energy Group (ASX:WDS), which had held discussions with Santos about a potential merger between late 2023 and early 2024, to re-enter the picture. It also comes as oil prices climb on the back of the conflict between Israel and Iran, which has raised concerns about crude oil and liquefied natural gas exports from the region. 'You could see this conflict affecting Qatar and certainly shipping through the Straits of Hormuz and shipping in the region more generally,' Forwood said. He added that while gas prices might move up, it would be limited to a 'more localised geography specific sort of thing, as it always is with gas'. Prendergast believes that Australian LNG exporters could benefit from a sudden shift in Middle East risk profiles with global customers incentivised to diversify supply to manage the heightened risk to the region. It is not a stretch to extrapolate this further and suggest that a wish to diversify its export capability might be behind ADNOC's move to acquire Santos. Impact on Queensland gas While much of the attention has been on Santos and its intention to accept the offer, it's the impact on the junior gas space in Queensland we're interested in. Forwood said that should ADNOC's focus really be Santos' LNG assets – particularly its plant at Gladstone – then it would likely be a positive for gas juniors. Prendergast agreed, saying the material reserve constraints faced by GLNG meant that any sizeable gas assets in the region would remain a high priority for development, particularly as third-party gas contracts start to meaningfully roll off. Both flagged the Santos and Comet Ridge (ASX:COI) owned Mahalo Gas Project joint venture, which has proved and probable (2P) gas reserves of 266 petajoules and a further 315PJ in best estimate (2C) contingent gas resources, as a potential beneficiary. 'A successful takeover would very likely remove Santos' cash constraints and could free up funding for (the) Mahalo JV development,' Prendergast said. 'While the Mahalo assets on their own may not be a long-term solution to fixing GLNG's gas constraints, they are certainly meaningful relative to GLNG's remaining 2P reserves, which in our view increases the corporate appeal held by Comet Ridge.' Forwood agrees, saying that an acquisition focused on STO's LNG assets would be accompanied by a need to get more gas to Gladstone. 'If that's the case, then you would think that there would be great emphasis on the Mahalo project with Comet Ridge. It's quite possible that is one of the outcomes,' he added. 'I would also think that it would make Comet Ridge (more of a) takeover target as rolling up Comet Ridge to get 100% of the Mahalo project would be a fairly obvious next step.' While that's what trained industry observers say, the market is yet to fully cotton on to the potential play here. Comet Ridge shares lifted 3.33% to 16c yesterday, with the $185m capped junior up a touch over 10% YTD. Santos has already been progressing front-end engineering and design on the wells, compression and gathering system for its 42.86%-owned project while pipeline partner Jemena has been progressing FEED for a 10 inch pipeline over about 80 kilometres that will go initially into Jemena's pipeline for domestic supply before connecting to STO's GLNG line. Any company acquiring Comet Ridge would also get with it the company's 100% interests in the Mahalo North and East projects, which are expected to be developed through the central Mahalo JV system. Mahalo North has 2P reserves of 43PJ and proven gas production with the Mahalo North-1 pilot having produced 1.75 million cubic feet per day of gas during testing. Flow testing of the Mahalo East pilot is currently underway with success expected to allow the company to convert most if not all of Mahalo East's existing (2C) contingent resource of 31 petajoules into 2P reserves. Other companies, such as those operating in the up and coming Taroom Trough within the southern Bowen Basin, could also benefit from interest in new gas resources. While these are still in early stage exploration, that supermajor Shell is reported to be expanding investment while companies such as Omega Oil & Gas (ASX:OMA) and Elixir Energy (ASX:EXR) have seen promising results so far in the nascent oil and gas district.
Zawya
10-06-2025
- Business
- Zawya
ADNOC Gas takes final investment decision and awards $5bln in contracts for first phase of its Rich Gas Development project
Final investment decision (FID) is the first of three for the project, which is the largest capital investment in company history Engineering, Procurement and Construction Management (EPCM) contracts cover expansion and major efficiency improvements of four sites – Asab, Buhasa, Habshan and Das Island Abu Dhabi, UAE – ADNOC Gas Plc and its subsidiaries (together referred to as 'ADNOC Gas' or the 'Company') (ADX symbol: ADNOCGAS / ISIN: AEE01195A234), a world-class integrated gas processing and sales company, announced today it has taken a FID and awarded $5 billion in contracts for the first phase of its Rich Gas Development (RGD) Project, marking a key milestone in the company's largest-ever capital investment. The contracts involve expanding key processing units to increase throughput and improve operational efficiency across four ADNOC Gas Facilities: Asab, Buhasa, Habshan (Onshore), and the Das Island liquefaction facility (Offshore). The company intends to take FIDs on two additional phases of the RGD project at Habshan and Ruwais to enable the delivery of greater production capacity to meet growing market demands. The RGD project will enable the development of new gas reservoirs, which are key to boosting liquid gas exports, supporting gas self-sufficiency in the UAE, and providing essential feedstock to the country's growing petrochemical industry. EPCM contracts have been awarded in three tranches for phase 1. The first tranche, valued at $2.8 billion, has been awarded to Wood for the Habshan facility. The remaining two tranches – $1.2 billion for the Das Island liquefaction facility and $1.1 billion for the Asab and Buhasa facilities – have been awarded to two consortia: Petrofac; and Kent Plc. Fatema Al Nuaimi, Chief Executive Officer of ADNOC Gas, said: 'The FID and contract awards for the first phase of the Rich Gas Development project mark a significant milestone in ADNOC Gas' strategy to deliver +40% EBITDA growth between 2023 and 2029. This strategic investment is expected to deliver significant new value for our shareholders and enable continued sustainable growth for the company, our employees, and the UAE.' Phase 1 of the RGD project focuses on optimizing and debottlenecking existing gas assets while unlocking new and valuable gas streams. As part of ADNOC Gas' long-term strategy, which is focused on growth and futureproofing its business, the RGD project aligns with the company's vision to deliver important growth initiatives between 2025 and 2029. Additionally, the RGD project highlights ADNOC Gas' commitment to enhancing In-Country Value (ICV), with plans to create hundreds of new, field-based technical positions by 2029, further contributing to the UAE's economic growth. About ADNOC Gas ADNOC Gas which refers to ADNOC Gas Plc and its subsidiaries (ADX: ADNOCGAS), listed on the ADX (ADX symbol: 'ADNOCGAS' / ISIN: 'AEE01195A234'), is a world-class, large-scale integrated gas processing and sales company operating across the gas value chain, from receipt of feedstock from ADNOC through large, long-life operations for gas processing and fractionation to the sale of products to domestic and international customers. ADNOC Gas supplies approximately 60% of the UAE's sales gas needs and supplies end-customers in over twenty countries. For investor inquiries, please contact: Richard Griffith Vice President, Investor Relations ir@ For media inquiries, please contact: Colin Joyce Vice President, Corporate Communications
