Australian Oil and Gas Projects Overview 2011

Of the 75 projects listed as advanced by the Australian Bureau of Agriculture and Resources Economics (ABARE), 41 are in the energy sector.  An advanced project is one which has already commenced construction or has been approved to commence construction.

Of the 75 projects across the total Australian Resource Sector, 67 are already under construction (with 30 of these still underway this year and in 2012) and eight are still to start, but will do so within the next three years.

In addition, there are 286 less advanced projects identified by ABARE which cite an operational date, but not a construction start date – but most are slated to commence production in the period 2012 to 2020.

Together the total number of new jobs anticipated for the combined sectors for the period 2011 to 2015 includes 45,000 in construction, 61,500 in mining operations and 3,200 in oil and gas operations.

Currently there are only a few projects underway in states like New South Wales, Northern Territory and South Australia, but this looks to dramatically change going forward.  The locations where some projects are currently drawing labour from – or anticipate drawing labour from – may change once increased opportunities present in home locations for employees and candidates.

The National Resource Skills Taskforce analysis released in 2010 shows: 

• Construction jobs on new projects could peak at 45,000 in 2012 and 2013, with strong jobs growth for technicians and tradespeople, and machinery operators and drivers.
• In LNG operations, pending the number of LNG trains constructed by 2015, employment could increase by around 3,200 (eg if four new trains are sanctioned and operating in Queensland and six in Western Australia).  There will be strong jobs growth for drillers (Queensland only), operators, electrical trades and mechanical technicians.
• Replacement demand in gas operations could be around 2,000 persons per annum, including approximately 500 retirements.

The report cites emerging shortages at present—mainly engineers and other professional staff with more than five years experience.

At the time of release, the report claimed there was a significant number of unemployed tradespeople.  However, the Taskforce expects labour market tightening will result in skills shortages by late 2011 to early 2012, particularly in Western Australia and some regions of Queensland. As a result, the resources sector could be 36,000 tradespeople short by 2015.

Each year, we provide an update on major mining, oil and gas projects which are already under construction, or are considered to have a strong likelihood of being approved.  The list is not exhaustive, but does provide those working in the industry, or considering working in the industry, with an insight into career opportunities - where they are located and timeframes.

Unless otherwise stated, all dollar figures in the blogs are in Australian dollars.  All information has been attained and extensively researched from current public sources and is true and correct to our best knowledge at this time

Australia Pacific LNG project approved

Australia Pacific LNG - one of Australia’s largest LNG export projects, comprising world-class coal seam gas resources and a LNG facility on Curtis Island off Gladstone in Queensland – has been approved for development. The Final Investment Decision is to proceed with the initial construction of one train and common facilities for a two train development.

The project’s first LNG exports are scheduled to start in mid 2015, and are underpinned by a 4.3mtpa sale and purchase agreement with China Petroleum & Chemical Corporation (Sinopec Corp.). The approval of the second LNG train is expected in time to enable its start up in early 2016.

Early site works for the project, including mobilisation on Curtis Island have commenced and long lead items have been ordered to maintain the project schedule. Australia Pacific LNG, a 50-50 joint venture between ConocoPhillips and Origin Energy, already employs 1,600 people, mostly in Queensland, and will create 6,000 construction jobs and 1,000 operational jobs for the ongoing operation of the project. The project consists of the further development of the APLNG’s CSG fields, a gas transmission pipeline to the Queensland coast and a gas processing plant and associated facilities where the gas will be cooled and liquefied for shipping overseas.   Origin will be responsible for the development and management of the CSG facilities including the gas fields and pipeline and ConocoPhillips will be responsible for the construction and management of the LNG plant.

The gas fields and pipeline components of the project will generate a peak workforce of approximately 3,000 workers during the development and construction phase and approximately 1,000 during the operational phase.  The LNG facility component of the project will generate a peak workforce of approximately 2,100 workers during the construction phase.  A workforce of around 100 is estimated to be required to operate the first LNG train at the LNG facility, with around 75 further people required for each additional train.

Oil & Gas - LNG Projects in Australia

Of the 75 projects listed as advanced by the Australian Bureau of Agriculture and Resources Economics (ABARE), 41 are in the energy sector.  An advanced project is one which has already commenced construction or has been approved to commence construction. Of the 75 projects across the total Australian Resource Sector, 67 are already under construction (with 30 of these still underway this year and in 2012) and eight are still to start, but will do so within the next three years. In addition, there are 286 less advanced projects identified by ABARE which cite an operational date, but not a construction start date – but most are slated to commence production in the period 2012 to 2020.

Together the total number of new jobs anticipated for the combined sectors for the period 2011 to 2015 includes 45,000 in construction, 61,500 in mining operations and 3,200 in oil and gas operations. Currently there are only a few projects underway in states like New South Wales, Northern Territory and South Australia, but this looks to dramatically change going forward.  The locations where some projects are currently drawing labour from – or anticipate drawing labour from – may change once increased opportunities present in home locations for employees and candidates.

The National Resource Skills Taskforce analysis released in 2010 shows: 

• Construction jobs on new projects could peak at 45,000 in 2012 and 2013, with strong jobs growth for technicians and tradespeople, and machinery operators and drivers.


• In LNG operations, pending the number of LNG trains constructed by 2015, employment could increase by around 3,200 (eg if four new trains are sanctioned and operating in Queensland and six in Western Australia).  There will be strong jobs growth for drillers (Queensland only), operators, electrical trades and mechanical technicians.


• Replacement demand in gas operations could be around 2,000 persons per annum, including approximately 500 retirements.

The report cites emerging shortages at present—mainly engineers and other professional staff with more than five years experience.

At the time of release, the report claimed there was a significant number of unemployed tradespeople.  However, the Taskforce expects labour market tightening will result in skills shortages by late 2011 to early 2012, particularly in Western Australia and some regions of Queensland. As a result, the resources sector could be 36,000 tradespeople short by 2015.

Each year, we provide an update on major mining, oil and gas projects which are already under construction, or are considered to have a strong likelihood of being approved.  The list is not exhaustive, but does provide those working in the industry, or considering working in the industry, with an insight into career opportunities - where they are located and timeframes. Unless otherwise stated, all dollar figures in the blogs are in Australian dollars.  All information has been attained and extensively researched from current public sources and is true and correct to our best knowledge at this time.   Projects are listed in alphabetical order by project name within each blog.

 

Queensland: skilled worker shortage

The head of Queensland’s leading industry body says choosy workers are making will make it difficult to fill the skills gaps in the state. In the next year, 30000 workers will be needed in the Bowen Basin, and Queensland Resources Council chief executive said he was shocked to discover 2500 unfilled places exist in the minerals and resources sector alone.
“At the moment the workforce is being very choosy, you really have to move heaven and earth to make it attractive for them because they do have alternatives, particularly the younger generation,” he told The Daily Mercury.
"They are very mobile, they can get on a plane and fly to Mackay or Moranbah or they can maybe stay on the plane an extra couple of hours and fly to Western Australia, and I'm hearing for some of those jobs there is a premium to be paid.”

He said the mining boom will be held back by the skills shortage, despite initiatives to expand the industry.
“The fundamentals are excellent and it has to be good news for Bowen Basin communities and places like Mackay.
"The number one constraint of being able to realise that potential is the skills issue.”
The QRC boss has welcomed the moves by the Gillard Government to find a balance between training locals and allowing skilled migrants into Australia to fill the vacancies.
“We were pleased with the Federal Budget initiatives,” he said.
"A sensible balance between training up the local workforce, accelerating apprenticeships, more money for training and some easing up on facilitation of being able to bring in migrant labour, particularly for those really big projects.
“Hopefully the people of the Mackay region will understand that with projects there is a construction phase with a very high peak workforce and then there are the ongoing jobs.
“My vision is that we make sensible use of, for the short term construction phases, let's use migrant labour sensibly to fill gaps there and let's maximise then the permanent on-going jobs for locals, that is the happy mix and that is what we are aiming for,” Mr Roche said.

In the recent federal budget, treasurer Wayne Swan announced funding to speed up the completing apprenticeships and gaining qualifications. Education Queensland Trade Training Centre project officer Bob Baker told The Mercury offers of big money and ease of entering the resources sectors in other regions were taking young people away from the Bowen Basin and towards south-east and Western Australia.
“At the moment a lot of young people are actually going elsewhere for training as well and then are finding other opportunities in other places.,” he said.
“If they train elsewhere then the transition becomes very easy then for them to move to wherever the biggest money is.
“If we can have the opportunities here for them in Mackay, then they will stay here.
“As a region we are competing with the south-east corner and other major areas of interest like Western Australia, where there is more action, more services, and more resources for families.”
Baker said there needs to be more focus on developing Mackay’s tourism and infrastructure.
http://www.miningaustralia.com.au/news/choosy-workers-damaging-resouce-sector--qrc-boss

30,000 new jobs on 38 Queensland developments

More than 30,000 new jobs are anticipated over the next six years to support 38 projects slated for development in the Bowen Basin in Queensland. The 38 new developments consist of 23 new coal mines and 12 coal seam gas projects as well as three mineral projects, in total generating more than five billion tonnes of resources over the next two decades. Whilst 10,000 jobs have been directly identified with the mining industry, the Mackay Area Industry Network (MAIN) anticipates an additional two jobs for every one created.

Coal projects include BMA’s Caval Ridge coal mine, QCoal’s Byerwen coal mine, Macarthur Coal’s Codrilla mine and Hancock Prospecting’s Alpha Coal mine.  Coal seam gas projects include Australia Pacific LNG and Gladstone LNG.

MAIN has rightly identified the need to urgently address infrastructure and skills issues in regional areas of Queensland. The Resource Channel is currently running a poll on whether or not Fly In, Fly Out from Brisbane to Queensland sites is supported as an alternative to residential arrangements

QLD and WA collaborate to solve mining skills shortage

As the skills shortage in the resource industry continues to worsen, peak industry groups in Western Australia and Queensland have joined with a national industry skills council to address the issue. The Chamber of Minerals and Energy Western Australia (CME), Queensland Resources Council (QRC) and SkillsDMC have joined forces to create strategies to sources the huge number of workers needed over the next five to 10 years.

In Western Australia alone, 33 000 workers will be needed in the next year, and 30 000 will be required in the next six years at the Bowen Basin.As part of the Memorandum of Understanding (MoU) agreed to by the industry groups, an objective of the three year agreement will be the development of skills initiatives to be implemented.

Projects under the MoU will include:

• Defining and implementing a national skills policy for the mining sector


• Providing timely workforce planning data to support skills advocacy functions with state and federal governments


• Knowledge transfer for local and state operational outcomes


• Brokering funds to support commonly agreed objectives


• Enhanced consultation and consistency on skills-related submissions


• Establishing lead agencies for projects and issues to maximise the strengths and opportunities provided by the MoU partners

QME chief executive Reg Howard-Smith said Queensland and Western Australia are up against very similar problems in their skills shortage.
‘Our ability to source skilled labour will prove vital in the delivery of projects on time and on budget,’ he said.
‘Our ability to source skilled labour will prove vital in the delivery of projects on time and on budget,’ Mr Howard-Smith said.
‘Where there is mutual benefit, this new, non-binding collaboration, allows the partners to work towards securing policy and initiatives that will underpin national prosperity for decades to come.’

QRC chief executive Michael Roche has echoed Howard-Smith’s comments and says the partnership will make it possible to tackle the problems in the mining sectors in both states.
“The MoU comes at a crucial moment in time to work towards ensuring the development and long-term sustainability of the resources sector in Queensland and Australia,” Roche said
“In the wake of a record $31 billion of new investment recently committed in Queensland alone by LNG developers, it is imperative we band together in order to meet the sector’s increasing workforce needs to support this unprecedented growth.

“No single state can resolve the skills issues we face on its own.’
The chief executive of SkillsDMC, Steve McDonald said planning for the future is the key to solving the issues.
“The enterprises with which we work understand the importance of continual upskilling and training and understand the need to plan for the prosperity of the industry, to ensure that even more critical skills gaps are avoided in the future.
“Industry must position itself to minimise the impact of a retiring workforce, and one that is not currently upskilled to levels that are crucial to industry productivity.
“It is the goal of this collaborative partnership to find solutions to these issues.’

Following the announcement of the federal budget by Treasurer Wayne Swan last week, employers in the resource in industry are urging the Federal Government to ignore demands from political groups and unions opposed to increasing the level of skilled migration. The Government’s announcement on Enterprise Migration Agreements (EMA’s) was welcomed by resource industry employer AMMA. The budget will see an increase in workers as it lifts the level of skilled labour imports and gives companies incentives through a $558 million employment fund.

The National Workforce Development Fund, launched today, is designed to create 130,000 new training places over the next four years.A new enterprise migration agreement for large mining projects in return for a financial contribution to train Australians will be implemented, with the aim of allowing 16,000 skilled immigrants to enter the country to work in some key regions where there is a labour shortage.

http://www.miningaustralia.com.au/news/qld-and-wa-collaborate-to-solve-mining-skills-shor