FEATURE ARTICLE
UK companies have particular strengths and expertise in subsea engineering, skills and training, research & development and safety. These areas have all driven the UK’s growing involvement in Australia’s oil and gas industry. The UK’s subsea expertise is internationally recognised, having pioneered new technologies in subsea design and engineering. There are expert UK companies in this sector operating throughout the supply chain, from project management, design engineering, fabrication and manufacturing to subsea support and services, and close UK-Australian relationships exist with companies in all stages. With its transition from construction to large-scale LNG production, the Australian oil and gas industry presents a number of new opportunities for UK companies. The industry is forecast to grow at an annual rate of 9.6% over the next five years, to be worth $71.8 billion and by 2020; industry exports are expected to account for over 80% of revenue. Several expansion projects are due to start full production in 201617, and high growth rates are expected to continue in 201718 as additional capacity comes on line, bringing growth in employment and the number of industry enterprises. New projects are being constructed in several gas fields, with most production destined for export. The largest is Chevron’s Gorgon project, based on gas fields off the north-west coast of Australia. Other large offshore projects include Shell’s Floating LNG Prelude project, the Wheatstone LNG project (a joint venture dominated by Chevron) and the Inpex Ichthys LNG project. Other LNG plants under construction will support the export of coal seam gas from Queensland: I recently visited the Queensland Curtis LNG project, the first LNG train on Curtis Island, created by BG Group’s QGC in partnership with CNOOC and others.
In the area of technology development there will be opportunities in the use of big data analytics, automating maintenance, using robotics and condition monitoring to predict where maintenance is required in advance.
The British Government’s trade and development arm, UK Trade & Investment (UKTI), can assist UK companies to bring their expertise and experience into Australia. In particular, UKTI is working closely with government and non-government partners in Australia and the UK to help British companies supply their products and services into the major oil and gas projects in Australia. They have enjoyed a good collaborative relationship with Subsea UK and their members for many years. Much of the innovation in the subsea sector is driven by the UK, and it is typically the smaller companies that are the most agile and vibrant in this area. However, they often find it hard to break into new markets, and it is here that UKTI can play a vital role. As a global organisation, UKTI is well placed to assist companies in the UK to increase their exports. We have a good team in Australia, and they are always looking to develop better links with UK firms in the subsea field. Our joint aim is to exploit emerging trade opportunities in Australia and the region, and we strongly welcome greater engagement with UK companies. To find out how UK Trade and Investment can assist your business with opportunities in Australia, visit www.gov.uk/ukti or contact one of our trade advisors.
There are tremendous opportunities for UK firms, with their valuable experience in the operation and maintenance of offshore and onshore facilities, to work with Australian companies and help them develop their own capabilities in operation and maintenance of these facilities. Keeping the gas trains running and getting them back on line after maintenance will be a strength for Australia in the future. Operational experience gained by
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UK oil and gas companies will be valuable, and should be a translational benefit to Australia.
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Several expansion projects to start full production by
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As a Trade Challenge Partner of UKTI, Subsea UK have also launched a Global Business service on their website, with the aim of assisting companies with getting started in exporting. This portal consolidates global news, market reports, business support contact cards (including local contacts to each region where possible) and events. Visit www.gov.uk/ukti/australia for more information.