Some interesting commentary in The Australian yesterday / today re Santos views on Gas Powered Energy. Some of the article follows :
Santos managing director Kevin Gallagher says China’s push for cleaner air, which has helped propel LNG prices to six-year highs, is expected to drive gas export demand for years, in a move he says will increase Australia’s contribution to fighting climate change.
The gas boss says that if Australia wants to champion the fight against climate change, it should allow access to massive resources that are restricted by state and territory governments.
“Demand in China grew really strongly over 2017, surprising everybody and driving the spot market much higher than any of us anticipated,” Mr Gallagher told The Australian yesterday, after the Adelaide gas and oil company released its fourth-quarter production and revenue results.
“Something like 28 cities have been directed to convert from coal-fired power generation to gas over the course of the next two years or so and ordered to improve the quality of air.”
He said demand driven by this was expected to continue over the next few years.
Santos yesterday said fourth- quarter revenue rose 9 per cent from the previous quarter to $US861 million ($1074m) , bringing 2017 revenue to $US3.11 billion, up 20 per cent.
Sales volumes of 21.8 million barrels brought full-year sales to 83.4 million barrels, which beat guidance of 79 million to 82 million barrels.
The sales and revenues figures were higher than some expectations because the Santos-run Gladstone LNG plant processed and exported gas from Shell’s Queensland Curtis LNG project when that plant was offline for major maintenance.
Net debt fell to $US2.7bn, from $US3.5bn at the end of 2016.
In 2018, we will increasingly focus on the build and grow phases of our strategy as we progress growth opportunities in northern Australia, PNG and Narrabri (in NSW), and ramp up drilling in the Cooper Basin.”
Mr Gallagher said that if Australia wanted to boost its contribution to global climate change reduction, freeing up east coast onshore gas supply to enable more exports and meet domestic demand was the way to do it.
“Australia does not get the credit for the effect our LNG exports are having on cleaning up Asia,” Mr Gallagher said.
He said gas was the quickest way to reduce global emissions and clean up air quality in coal power-heavy regions.
Santos managing director Kevin Gallagher says China’s push for cleaner air, which has helped propel LNG prices to six-year highs, is expected to drive gas export demand for years, in a move he says will increase Australia’s contribution to fighting climate change.
The gas boss says that if Australia wants to champion the fight against climate change, it should allow access to massive resources that are restricted by state and territory governments.
“Demand in China grew really strongly over 2017, surprising everybody and driving the spot market much higher than any of us anticipated,” Mr Gallagher told The Australian yesterday, after the Adelaide gas and oil company released its fourth-quarter production and revenue results.
“Something like 28 cities have been directed to convert from coal-fired power generation to gas over the course of the next two years or so and ordered to improve the quality of air.”
He said demand driven by this was expected to continue over the next few years.
Santos yesterday said fourth- quarter revenue rose 9 per cent from the previous quarter to $US861 million ($1074m) , bringing 2017 revenue to $US3.11 billion, up 20 per cent.
Sales volumes of 21.8 million barrels brought full-year sales to 83.4 million barrels, which beat guidance of 79 million to 82 million barrels.
The sales and revenues figures were higher than some expectations because the Santos-run Gladstone LNG plant processed and exported gas from Shell’s Queensland Curtis LNG project when that plant was offline for major maintenance.
Net debt fell to $US2.7bn, from $US3.5bn at the end of 2016.
In 2018, we will increasingly focus on the build and grow phases of our strategy as we progress growth opportunities in northern Australia, PNG and Narrabri (in NSW), and ramp up drilling in the Cooper Basin.”
Mr Gallagher said that if Australia wanted to boost its contribution to global climate change reduction, freeing up east coast onshore gas supply to enable more exports and meet domestic demand was the way to do it.
“Australia does not get the credit for the effect our LNG exports are having on cleaning up Asia,” Mr Gallagher said.
He said gas was the quickest way to reduce global emissions and clean up air quality in coal power-heavy regions.
STO Price at posting:
$5.20 Sentiment: Hold Disclosure: Held
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