Australia’s Woodside sees robust demand for LNG

Market: Crude oil, Fertilizers, Hydrogen, Natural gas
25/02/25

Australian independent Woodside Energy sees LNG demand exceeding supply into the 2030s as project delays lead timelines for nearly 30mn t/yr of new capacity to slip into the next decade, chief executive Meg O'Neill said after releasing the firm's 2024 annual results today.

Headwinds affecting some projects and "ongoing, robust demand" within Asia-Pacific will prevent any LNG supply glut, despite easing regulatory hurdles under the Trump administration, O'Neill told investors.

Such headwinds could also impact Woodside. The company's 14.4mn t/yr North West Shelf (NWS) terminal is still waiting for federal consent to continue operations past 2030, after passing state government scrutiny last year following six years of assessments. And the planned 11.4mn t/yr Browse project hinges on NWS approvals being granted, with Woodside preferring a decision is made before Australia's elections in May, in which Green and other climate-conscious MPs may win a balance of power.

O'Neill said the fully-priced engineering, procurement and construction contract with engineering firm Bechtel for the initial stage of its Louisiana LNG project was "differentiating" with other nearby proposed terminals requiring re-pricing, as Woodside aims to sell down 50pc of the terminal.

Woodside will not take a final investment decision (FID) on Louisiana unless it is confident it has partners signed up or extremely close, O'Neill said, referencing the sale of 49pc of Pluto train 2 at FID before it later offloaded part of the Scarborough gas field that will supply the project.

"I think there's potential for us to have the whole 50pc [target] sold-down by FID," O'Neill said, adding that "deep negotiations" were underway as the project aims for FID-readiness by 31 March.

Woodside said it will cut expenditure on exploration and its New Energy division by $150mn to focus on producing assets. Exploration outlay was $342mn in 2024 and is guided at $200mn for 2025, while the savings from New Energy will mainly come from pausing its 60 t/d H2OK project in the US.

In New Energy, Woodside will prioritise its 83pc complete, 1.1mn t/yr US Beaumont ammonia project ahead of first output in July-December and first low-carbon or blue ammonia using carbon capture and storage in the second half of 2026. Cost of production for phase 1 will be $260-$300/t, based on assumed costs after start-up from 2027-29 at 96pc uptime, a fixed/variable split of 70/30pc, a range of Henry hub gas pricing and the 45Q tax credit that grants $85/t of CO2 stored.

Woodside made a profit of $3.57bn in 2024, up from $1.66bn for 2023 but below 2022's record of $6.5bn.

It posted lower realised oil and gas prices of $63.6/bl of oil equivalent (boe) in 2024 from $68.6/boe in 2023, despite its output rising to 530,000 boe/d.

The firm kept its 2025 guidance unchanged at 186mn-196mn boe (510,000-537,000 boe/d). Forecast capital expenditure of $4.5bn-5bn is focused on its 80pc complete Scarborough and 20pc complete Trion projects.

By Tom Major

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10/11/25

Cop: IMO pushes forward with carbon pricing

Belem, 10 November (Argus) — External politics rather than any failure of the International Maritime Organization (IMO) led to the delay in adopting a greenhouse gas (GHG) emissions pricing mechanism for global shipping, proposal supporters said on Monday. IMO members last month voted to delay the adoption of the Net-Zero Framework (NZF) by a year, despite some of those backing the delay previously supporting the carbon pricing system. The October gathering was "not a typical IMO" meeting, IMO secretary general Arsenio Dominguez said during a side event at the UN Cop 30 climate talks in Belem, Brazil. "We were affected by the global geopolitics that we all face right now. We're not immune to it," he said. Dominguez also sought to assure critics of the vote that the IMO is not backing down from the proposal, citing ongoing work to address some questions that member states raised during last month's meeting. "My message to you is very clear, don't judge IMO for what happened last October. Don't think that IMO stops there because we don't," he said. Dutch climate envoy Jaime de Bourbon Parme struck a similar tone, telling the audience that while the delay may give supporters a "sense of failure" very few countries last month argued the NZF should not be adopted. "I know the Netherlands and many other countries were ready to sign, however, the meeting went a very different direction," he said. While Dominguez and the Dutch prince did not single out any country for causing the delay, many NZF supporters have put the blame on the US. In the days leading up to the vote, the administration of US president Donald Trump threatened to retaliate against countries that back the proposal with measures such as visa restrictions, new port fees or sanctions on officials that sponsor "activist-driven" climate policies. The Trump administration "went outside the rules of engagement," said Andrew Forrest, non-executive chairman of Australian mining company Fortescue, calling US actions before the vote a form of "thuggery." By Michael Ball Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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DAP softening could catch Pakistani importers off guard

10/11/25

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10/11/25

DAP softening could catch Pakistani importers off guard

London, 10 November (Argus) — Pakistani domestic DAP prices have begun to slip since peaking in the first half of October. By realigning with declining international prices, lower domestic prices could force importers who bought DAP at higher levels to sell at a loss. The latest range for domestic DAP prices spans 13,500-14,350 rupees/50kg bag ex-Karachi, with private importers offering at Rs13,500-13,800/50kg bag ex-Karachi. Import costs have been widening their discount to domestic levels since turning cheaper in early October. The domestic equivalent breakeven cost of the latest DAP assessment at $725-730/t cfr is now more than Rs1,000/50kg bag ex-Karachi below domestic prices at a midpoint basis, Argus data show. This is the widest discount since the start of 2025. Imports on a $/t cfr basis are transferred into domestic prices by applying current exchange rates with the Pakistani rupee. Insurance, transportation and bagging costs add around 14pc. A goods and sales tax and a FED tax, each 5pc, also add to landed costs. This means that the peak of import prices at $815/t cfr in the second half of August at the midpoint was equivalent to breakeven landed costs at Rs14,341/50kg bag ex-Karachi. Domestic prices have matched import levels with a delay of about two months over March-October. Import prices had moved above domestic levels in March, with the premium remaining above Rs1,000/50kg bag over most of May-August, while prices rose steadily. Importers who bought DAP during this period were counting on the continuing increase in domestic prices to secure positive margins when selling domestically. But domestic prices never equalled the peak of import prices in the second half of August and have now started declining. Domestic prices peaked in mid-October at Rs14,000/50kg bag ex-Karachi at the midpoint, equivalent to about $793/t cfr when using the latest $/Rs exchange rate. Any DAP imported above this level would sell at a loss domestically. The fall of domestic prices could be faster than the initial softening in cfr prices going forward. Suppliers will want to resist dropping prices to avoid high-cost imports wiping out profits made earlier in the year, but farmers that return to the market for the peak offtake season in November are pointing to the bearish international trend. Despite improving crop prices, the cancellation of the expected subsidy for DAP has hurt farmers' finances. Suppliers are holding onto healthy inventories, and some are understood to be eager to sell their stocks to avoid getting caught out by declining prices. Up to 440,000t of DAP has been brought into Pakistan by private importers since May, line-up data show. Some buyers have reported targeting import prices at $700/t cfr, a level not seen since mid-April. This would be equivalent to breakeven landed costs at Rs12,361/50kg bag ex-Karachi. If domestic prices drop by 9.4pc from current levels, unsold cargoes that were imported after mid-April would be selling at a loss. The decline in domestic prices is less likely to cause losses for suppliers of branded and domestically produced DAP, which sell at a premium to private importers. But higher raw material costs is likely squeezing margins for Pakistan's domestic DAP production. By Adrien Seewald Pakistan domestic DAP price VS cfr domestic equivalent Rs/50kg bag ex-Karachi Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Blending raises WTI quality concerns

10/11/25

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10/11/25

Blending raises WTI quality concerns

Houston, 10 November (Argus) — Rising levels of natural gas liquids (NGLs) and corrosive additives are being blended into Permian light sweet WTI crude, prompting concerns about inconsistent quality in the absence of an agreed market standard. NGLs and other additives are being blended into WTI early in the production process as part of efforts to maintain profitability in the face of lower crude prices and rising production costs. But the higher NGL levels being blended upstream are increasingly causing problems downstream. One key problem is the lack of an acknowledged market standard for the amount of butane allowed in Permian WTI, participants heard at a Crude Oil Quality Association (COQA) meeting in San Antonio, Texas, in early October. Since NGLs occur naturally, it is also difficult to determine where the additional volumes are being introduced along the delivery line, conference participants heard. COQA efforts in the past led to industry adoption of light-end limits for Nymex-deliverable domestic crude and light sweet grade LLS. Elevated butane levels lighten a crude, but some refineries are not equipped to handle grades with a higher level of light-end yields, and this can lead to capacity bottlenecks at their processing units. Crude blended with NGLs can also take up more pipeline space relative to standard crude. Mercaptans — naturally occurring sulphur compounds — have also become a quality concern, although there is a lack of consensus on how the problem is arising. Mercaptans are harder to treat and remove than other impurities, pose corrosion risks and damage refinery catalysts. High mercaptan levels can make it harder to produce lighter products that meet quality specifications. The jet fuel produced can exceed the regulated maximum amount of sulphur. WTI volumes accepted in the North Sea Dated benchmark-setting process have a mercaptans limit of 75ppm. A US-wide standard has yet to be adopted, although some US pipelines from the Permian use the 75ppm limit to better align standards, including Plains' 600,000 b/d Epic and Phillips 66's 900,000 b/d Gray Oak to Corpus Christi lines. Plains recently informed shippers that it will charge a 50¢/bl premium if WTI mercaptans exceed the 75ppm limit on its lines. WTI intended for export also has to meet stricter quality specifications in relation to several metals and has an upper limit for Reid Vapor Pressure (RVP), which can be affected by increased NGLs blending. Variability in gravity, sulphur, mercaptans, metals and RVP levels can undermine export demand for WTI. Zinc contamination Quality issues are not limited to WTI. Elevated zinc levels in offshore US Gulf medium sour Mars led to the US Strategic Petroleum Reserve having to provide a crude loan to ExxonMobil. The problem also contributed to the widest discounts for Mars against Nymex-quality WTI since December. Chevron found that the quality problem was connected to the start-up of a new offshore well, but not before the contamination had disrupted trade. The Shell-operated Mars pipeline system comingles crude from a variety of deepwater US Gulf oil fields, which it carries into the Mars stream. Reports of unexpected wax content in onshore US crude also suggest that Uinta Basin crude is sometimes entering the onshore mix. Uinta Basin crude contains high levels of paraffin and is mostly transported by rail because otherwise it needs to be moved in heated pipelines. As crude prices soften, Permian wells mature and drilling shifts to less optimal rock formations, some quality variability seems likely and blending may increase, which could present more problems for refiners in the future. By Amanda Smith and Mykah Briscoe Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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New York approves Williams' NESE gas pipeline

07/11/25

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07/11/25

New York approves Williams' NESE gas pipeline

New York, 7 November (Argus) — New York and New Jersey state environmental regulators today approved key permits for US natural gas pipeline company Williams' planned Northeast Supply Enhancement (NESE) gas pipeline project. Williams in 2024 shelved the controversial pipeline, which would increase gas transportation capacity from Pennsylvania gas fields into New York City by 400mn cf/d (11mn m³/d), because it was unable to acquire key water quality permits from state regulators in New York and New Jersey. But after US president Donald Trump retook office this year and began signaling his intention to revive NESE and Williams' unrelated 650mn cf/d Constitution pipeline, Williams in May asked federal regulators to reinstate its earlier authorization of NESE. If built and put into operation, NESE would be the first major interstate gas pipeline project to move forward in the northeastern US since the 2 Bcf/d, West Virginia-to-Virginia Mountain Valley Pipeline entered service in June 2024. That project only moved forward because congressional action allowed it to bypass federal permitting hurdles, which make such projects daunting for developers. Williams on Friday also withdrew its application for water quality permits for Constitution from the New York State Department of Environmental Conservation after failing to fulfill repeated information requests, the state regulator said. But the pipeline company "continues to advance" Constitution "and is preparing to follow up with additional filings" to ensure it is approved for construction and operation, a Williams spokesperson told Argus . "We're proud to move NESE forward and do our part in providing New Yorkers access to clean, reliable and affordable natural gas," Williams chief executive Chad Zamarin said in a statement. "Expanding natural gas infrastructure is vital to lowering costs and increasing economic opportunity, and the NESE and Constitution projects are important to connecting energy to opportunity in the Northeast." New York City, which is deeply dependent on gas for its power generation and home heating, pays considerably higher prices for wholesale gas than buyers from within the nearby massive gas fields of Appalachia because the pipelines that ferry that gas east to urban population centers often run full. Spot prices at Transco zone 6 in New York, an indicator for New York City gas prices, over the past year averaged $3.77/mmBtu, 41pc higher than gas prices at the Leidy Line hub, an indicator for northeast Pennsylvania gas prices. The revival of NESE and Constitution earlier this year followed negotiations between Trump and New York governor Kathy Hochul (D) on energy infrastructure. Those negotiations came after the Trump administration's decision in April to block work on Equinor's Empire Wind project off the coast of New York, only lifting a stop work order after talks on pipeline capacity took place. The Trump administration alleged the administration of former US president Joe Biden had rushed the approval process. The Norwegian developer at the time called the order "unprecedented" and "unlawful". Hochul has consistently denied allegations that Williams' renewed hopes for gas pipelines into New York stemmed from any sort of deal between herself and Trump. "We need to govern in reality," Hochul said in a statement Friday. "We are facing a war against clean energy from Washington Republicans, including our New York delegation, which is why we have adopted an all-of-the-above approach that includes a continued commitment to renewables and nuclear power to ensure grid reliability and affordability." While NESE met the standards required by state environmental regulators to obtain a water quality permit, Constitution did not, she added. New York's approval of the NESE pipeline drew the ire of community groups. "Hochul just did Trump's bidding by approving the massive Williams fracked gas pipeline," activist group New York Communities for Change said Friday on social media site X. "Hochul's decided to sell us out to Trump." By Julian Hast Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Petrobras increases spending by 24pc in 3Q: Update

07/11/25

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07/11/25

Petrobras increases spending by 24pc in 3Q: Update

Updates with investment plans in paras 3-4 and explorations plans in paras 8-9 Rio de Janeiro, 7 November (Argus) — Brazilian state-controlled Petrobras' investments increased by 24pc in the third quarter from a year earlier, as the firm continues to focus on production in the offshore pre-salt. Petrobras spent $5.5bn in capital expenditure (capex) in July-September, of which $4.7bn was for exploration and production. Of this investment in exploration and production, $2.7bn went to developing production of the pre-salt cluster in the Santos basin, particularly the construction of seven new floating production, storage and offloading units that will serve the Buzios, Atapu and Sepia fields. A further $900mn went to developing production in the Campos basin's pre- and post-salt, and $500mn went to exploration. Total investments over the first nine months of the year were $14bn, a 29pc increase on the same period last year. The company has speeded up investment execution due to projects being brought forward, rather than higher costs, and is on track to meet guidance by year's end, directors said. Capex guidance for 2025 as outlined in Petrobras' 2025-2029 business plan is $18.5bn. The firm is due to present an updated plan at the end of November. There are no plans to cut investments next year, said the director for engineering, technology and innovation, Renata Baruzzi. Petrobras posted a profit of R32.7bn ($6bn) in the third quarter, a 0.5pc increase on the same quarter last year and 23pc more than in the previous quarter. Higher crude production as well as stronger crude exports and domestic sales of diesel drove the third quarter result, Petrobras said. It also cited a small rallying of oil prices, with the price of Brent growing by 2pc compared with the second quarter, and lower operational costs, as contributing factors. The company's board approved a payout of R12.16bn ($2.3bn) to shareholders, or R0.9432/share, down from R1.3282/share a year earlier. Dividends will be paid in two installments, in February and March. Exploration going forward Petrobras celebrated receiving regulatory approval last month to drill an exploratory well in the Foz do Amazonas basin off Brazil's northern coast. This is the most coveted area in the equatorial margin, a new oil frontier which could contain reserves similar to those found off Guyana. The company hopes to find oil in this first well, named Morpho, but if not it will continue exploration, director for exploration and production Sylvia Anjos said. "We are already planning for eight wells in the region," she said. By Constance Malleret Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Australia’s Woodside sees robust demand for LNG

Related news posts

Cop: IMO pushes forward with carbon pricing

Cop: IMO pushes forward with carbon pricing

DAP softening could catch Pakistani importers off guard

DAP softening could catch Pakistani importers off guard

Blending raises WTI quality concerns

Blending raises WTI quality concerns

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New York approves Williams' NESE gas pipeline

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Petrobras increases spending by 24pc in 3Q: Update

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