How do oil companies transform into natural gas companies?

Third, infrastructure construction lags behind, resulting in insufficient supply security capacity. Regarding pipeline construction, as of the end of 2017, China’s pipeline mileage per 10,000 square kilometers of land area was approximately 70 kilometers—only 12% that of the United States—and conflicts between pipeline construction and urban-rural planning frequently arise, making site selection for infrastructure increasingly difficult. Concerning underground gas storage facilities, China currently operates 25 gas storage reservoirs with a total peak-shaving capacity of 11.7 billion cubic meters—far below the global average. As for LNG receiving terminals, the number of such stations remains relatively small and unevenly distributed. Fourth, market mechanisms remain underdeveloped: pricing in competitive segments has yet to be fully liberalized; trading platform construction remains at a rudimentary stage; and existing commodity exchanges lag significantly behind world-class standards in terms of trading rules, membership coverage, and transaction volumes. Moreover, LNG and CNG storage-and-distribution stations have become vital for winter clean heating and rural gasification in northern China. However, local governments hold inconsistent interpretations regarding the relationship between these development models and gas utilities’ exclusive franchise rights—thus urgently requiring clear regulatory guidance on their standardized development. International Oil Companies: 'Lessons from Others Can Sharpen Our Own Tools' First, upstream investment continues shifting toward natural gas businesses. Even amid a globally oversupplied and relaxed natural gas market, major international oil companies prioritize natural gas assets in their acquisition strategies. ExxonMobil acquired natural gas assets in Papua New Guinea and East Africa, spending over USD 6 billion; BP purchased two gas blocks with resource potential—in Egypt and off West Africa’s coast—in 2018, investing nearly USD 1.5 billion. In new project development, most of BP’s seven major new projects launched this year are natural gas projects; Shell plans investments in Nigeria’s natural gas projects; Total brought online Myanmar’s offshore natural gas project and jointly signed with China National Petroleum Corporation (CNPC) a contract for developing Phase 11 of the South Pars gas field—the world’s largest natural gas field—in Iran. Second, continuously increasing the share of natural gas production. During the recent low-oil-price cycle, global natural gas prices fell substantially—but international oil companies maintained largely stable natural gas output. As of end-2017, only Chevron and BP had natural gas production shares below 40%; ExxonMobil, Shell, Total, Eni, and Equinor all exceeded 40%. BP’s annual report shows that over 70% of its 2017–2021 investment portfolio comprises gas fields. Total stated that, over the next five years, it will further increase investment across the entire natural gas value chain: natural gas production will rise by 20%, capacity and trade volume will double, re-gasification capacity will grow by 50%, and natural gas sales will increase by 70%. Third, building technological capabilities covering the full LNG value chain. In upstream extraction, Floating Liquefied Natural Gas (FLNG) projects eliminate the need for onshore LNG infrastructure, thereby saving substantial costs. Following Petronas’ launch of the world’s first FLNG project in Malaysia, Shell advanced its Prelude and Browse FLNG projects; ExxonMobil and Eni are also progressing the Coral FLNG project in Mozambique.

Australia’s export lifeline faces strike risks: tensions escalate in iron ore and natural gas sectors

The participants in this strike are not ordinary miners, but high-voltage electricians and manufacturing technicians. These individuals constitute the 'nerve center' of port operations—they maintain high-voltage power grids powering conveyor belts, ore dumpers, ship loaders, and port lighting. Approximately 60 electricians and over 100 manufacturing technicians—though numerically small—are irreplaceable. BHP can temporarily redeploy some personnel, but strikes targeting core technical positions will significantly reduce loading/unloading efficiency, making vessel schedule delays almost inevitable. Estimates suggest that if shipping operations at Port Hedland are severely disrupted, BHP could face daily export losses of AUD 11–12.6 million. The Western Australian government would lose roughly AUD 6.85 million per day in mining royalties—a sum directly tied to funding public services. 2.3 Workers’ Genuine Demands This strike is not merely about wage increases. After seven months of stalled negotiations, workers’ core demands focus on structural fairness: • Night-shift allowances: Night shifts are routine in the Pilbara region, yet allowance standards have long lagged behind reality. • Heat-stress allowances: Summer temperatures here regularly exceed 45°C—among the harshest industrial environments globally. • Overtime and public holiday allowances: Workers demand alignment with industry benchmarks. • Ending 'extremely inequitable' individual employment contracts: Ensuring equal pay for equal work. ETU Western Australia Secretary Adam Woodage stated bluntly: 'We have worked for over six months to resolve this through negotiation—but BHP’s obstructive behavior means we literally have no one left to negotiate with.' Notably, this is reported as the first protected industrial action affecting BHP’s Pilbara operations in the 21st century—marking a new phase in Australia’s mining labor relations. Three, Ichthys LNG: Asia’s Energy Security ‘Achilles’ Heel’ 3.1 One Project, Multiple Nations on Edge Operated by Japan’s Inpex Corporation, the Ichthys LNG project ranks among Australia’s most complex energy engineering undertakings. Natural gas is extracted from offshore Browse Basin gas fields in the Timor Sea, transported via subsea pipelines to the Darwin liquefaction plant, and ultimately exported to Asian markets. The project produces 9.3 million tonnes of LNG annually—approximately 10% of Australia’s total LNG output. Crucially, around 70% of its output flows to Japanese buyers—including Tokyo Electric Power, Tokyo Gas, Kansai Electric Power, Osaka Gas, Kyushu Electric Power, and Toho Gas—key pillars of Japan’s energy infrastructure. According to Inpex data, this volume accounts for over 10% of Japan’s annual LNG imports. Additionally, Ichthys produces 1.65 million tonnes of LPG and roughly 100,000 barrels per day of condensate annually—vital feedstocks for Asia’s petrochemical supply chain. 3.2 The ‘Surgical-Strike’ Strategy of the Strike Unlike the Port Hedland action, the Ichthys strike employs a more refined 'work-to-rule' strategy: • Two-hour work stoppages daily: 6–8 a.m. and 6–8 p.m. • Prohibition of 'extended-cycle' work (i.e., no extension of shift cycles) • Ban on working beyond 6 a.m. on shift-change days • Management must provide at least four weeks’ advance notice for shift-swap arrangements The sophistication of this approach lies in its precision: it avoids triggering full-scale shutdowns while deliberately disrupting logistics critical to FPSO (Floating Production Storage and Offloading) and CPF (Central Processing Facility) crew rotations.

Osaka Gas to buy 5% stake in Australia's Browse gas project from BP

3 days ago

Osaka Gas agreed to acquire a 5% stake in BP's Browse gas project via a joint venture with JOGMEC to strengthen its LNG supply portfolio. The utility expects to secure 550,000 tons of annual LNG from the project targeting 11 million metric tons of total production.

reuters

2026-09-18

Osaka Gas to buy 5% stake in Australia's Browse gas project from BP

Osaka Gas to buy 5% stake in Australia's Browse gas project from BP

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