SPE WA Technical Luncheon – Australian LNG: The cost myths and truths

Abstract:

In recent years there have been a number of press articles relating to the high cost of doing business in Australia. The impacts of low productivity, high-labour costs and poor performance have all been highlighted as ailments with Australia and within the LNG (construction) industry in particular. This has led to the generally held views that Australia is a high-cost environment and Australian LNG is expensive. The headline numbers that are often quoted appear to support these views, however they overlook and sometimes mask aspects of individual projects that are important to understand before making any broad or generic pronouncements about the competitiveness of the Australian industry in general.

This presentation will try and sort out the myths and truths of Australian LNG costs. We will:

• Identify key inadequacies of the generic comparisons that have often been made in the recent past
• Demonstrate the actual impact of several identified issues
• Identify the real differences and similarities in development and costs of LNG projects in Australia compared to other areas of the world, in particular the US.
• Demonstrate the importance of decisions made early in the project development cycle by respective owners on the projects and project costs
• Examine the impact of lack of collaboration

Presenter: Martin Wilkes

Martin Wilkes holds a Masters of Engineering (Chemical and Process) from the University of Newcastle Upon Tyne, UK. He has worked in the oil and gas industry for more than 25 years, holding a range of international positions with Shell and Woodside prior to joining RISC. Martin is a principal advisor at RISC. He is a Chartered Chemical Engineer and a Chartered Environmentalist, a member of the Institution of Chemical Engineers, and a member of the SPE.

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