Triangle Energy ships second WA Cliff Head oil export to Thai refinery; CSS facility on cards

Triangle Energy (ASX:TEG) has shipped its second export of oil from the WA Cliff Head oil project located approximately 12km offshore Doranga. 

Triangle Energy partners with Pilot Energy (ASX:PGY) at the Cliff Head JV, which is a shallow water development. 

Oil was trucked from the Arrowsmith Stabilisation Plant (ASP) storage facilities to be transferred onto the AB Paloma; the same ship which last month carried off Triangle’s first oil export. (Just for the sake of trivia; Paloma is Spanish for ‘Pigeon.’)

New shipping route a boon

When Triangle shipped its first oil export on the Paloma last month, the company noted it was using a new Geraldton-to-Singapore shipping route. 

At the time, Port of Geraldton CEO Damian Tully welcomed the move. 

“We are excited to facilitate a new tanker export route through Geraldton,” Tully said. 

Triangle MD Conrad Todd described the move as exciting, a sentiment he has echoed today. 

“This continues the exciting progress of the CHJV. The completion of the second export run to Thailand ensures we will continue exporting and selling the oil produced from Cliff Head for the foreseeable future.” 

As part of the forseeable future, Triangle Energy notes today it continues to negotiate with Pilot Energy on the creation of a Carbon Capture and Storage (CSS) facility attached to the project to boost project ESG credentials. 

CSS an ambitious proposal 

However, that CSS facility will not necessarily be used by the partnership itself, but rather, will offer CSS services to third parties. 

It’s worth noting that no CSS facility on earth has yet been able to work as per original engineering designs, despite a healthy body of research suggesting the technology is possible. 

Chevron’s CSS facility at Gorgon in north WA, which is one of the largest in the world, is both over budget and below capacity. 

Perth Basin picking up 

The move comes as the latest hydrocarbon production to emerge from the Perth Basin, a geological formation containing both oil and gas which underlies both offshore and onshore developments. 

The Perth Basin is the same formation where Talon Energy (ASX:TPD) and Strike Energy (ASX:STX) have recently made the decision to build a 33TJ/d processing plant at Walyering. 

While Triangle Energy has not disclosed any estimates of revenue attached to today’s export, the price of Brent Crude is currently trading at US$92.70/bbl in early afternoon trade.

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