In today’s talking points: Australia to benefit from renewable energy push;CNOOC to spend big in 2018; AWE challenges Mineral Resources to match Mitsui takeover offer; Australia set to meet energy targets
Australia to benefit from renewable energy push
Australia looks set to benefit from what the Climate Council is calling a ‘renewable investment bonanza’ as investors turn to Australia for large-scale battery and renewable energy technology development. Battery development has been of key interest of late following the construction of Elon Musk’s 100-megawatt battery in South Australia. According to Andrew Stock of the Climate Council, past success has attracted the attention of the international community with plans for a large-scale solar plant in Port Augusta and an even larger battery in Queensland underway. As development continues, lowering costs of renewables and batteries will continue to reinforce each other, ultimately benefiting Australian households with lower energy prices, said Mr Stock. Economist Warren Hogan says that while governments still support traditional energy sources, the push for a greater focus on renewables continues, and is sure to have a sustained influence on the market.
Read more at: ABC
CNOOC to spend big in 2018
Chinese offshore oil and gas company CNOOC plans to increase spending by 40% in 2018 due to favourable oil prices. CNOOC plans to peg its capital expenditure (capex) at 70-80bn RMB in 2018. This contrasts with its expected 60-70bn RMB capex in 2017, despite an actual expenditure of around 50bn RMB. This had been likely due to a crude oil price of $70 a barrel in the past 6 months due to supply cuts by major producers. The 2018 output guidance rather is based on a Brent price of $53 per barrel.
Read more at: BusinessDay
AWE challenges Mineral Resources to match Mitsui takeover offer
Australian gas producer AWE has given local mining services firm Mineral Resources notice that it would accept a takeover offer from Japanese Mitsui & Co of A$594m if it could not match the bid. A statement was made Tuesday by AWE that it would give Mineral Resources a deadline by Friday 2 February (today), or it would take Mitsui’s offer of A$0.95 a share – 14.5% higher than Mineral Resources’ existing bid. The bidding war began last year when China Energy Reserve and Chemicals Group’s (CERCG) offer was bested by Mineral Resources. All suitors have been eyeing off AWE’s 50 per cent stake in the Waitsia gas field in Western Australia.
Read more at: Reuters
Australia set to meet energy targets
Australia’s Clean Energy Regulator has stated that the country is on-track to meet its 2020 Renewable Energy Target. The Renewable Energy Target, a Federal Government policy in operation since 2001, looks to have 33,000 gigawatt hours of extra renewable energy produced by 2020. In a statement on January 20, CER chairman David Parker announced that with plans for a 6532-megawatt installation in addition to previous measures, Australia will sufficiently meet its target before 2020. Currently solar energy production makes up 46% of the new energy production capacity, with wind comprising the other 54%. According to Mr Parker, 2017 saw 100MW of renewable energy projects completed, a figure which he sees as continuing to increase in future years.
Read more at: SBS