Shell drops plans to lock out Prelude workers from Western Australian offshore gas facility

ABC Kimberley

 / By Taylor Thompson-Fuller

Posted 22h ago22 hours ago, updated 22h ago22 hours ago

Shell last week said it planned to lock workers out from the facility.(Supplied: Shell

Shell has scrapped plans to lock workers out of its multi-billion dollar offshore gas facility, Prelude, citing safety concerns.  

Key points:

• The company blamed a lack of assurance from unions that safety functions would be carried out 
• Union representatives said the claims were a "red herring" and they would not endanger safety of workers at the rig
• Industrial negotiations proposed via mediation ground to a halt

Workers onboard the facility 400 kilometres off Western Australia's Kimberley coast are engaged in protected industrial action in a bid to push for better wages. 

The Anglo-Dutch energy giant shut down the facility and suspended production in response to strikes earlier this month. 

It said last week it planned to lock workers out from the Prelude facility.

Safety concerns prompt backdown

A Shell spokesperson said the lockout would not proceed "in order to allow for safety-critical work to be carried out". 

"The safety of all people onsite and integrity of the facility remains our priority," the spokesperson said. 

Shell blames the union for what it calls a lack of reassurance over maintaining safety.(Supplied: Shell)

In a letter sent to employees on Monday, Prelude asset manager Peter Norman said the backdown followed a lack of reassurance from unions they would carry out critical work onboard the facility.

'We will not proceed with a lockout in order to protect critical safety and emergency response activities," the letter read. 

"If we had moved to a lockout, the current exemptions under the work bans covering this work would no longer apply.

"And we have no assurance from the union that they would maintain the exemptions to protect these activities." 

Safety claims a 'red herring'

The Australian Workers Union (AWU) and the Maritime Union of Australia (MUA) represent workers through the Offshore Alliance partnership. 

Dan Walton says the claims over safety concerns are a "red herring". (ABC News)

AWU national secretary Dan Walton said the claims made in the letter about safety concerns were a "red herring". 

"The union has been writing to the regulator about our safety concerns for over a year and we've clearly said we would drop any protected action if it was likely to jeopardise the safety of anyone," he said.

"Hopefully this now means we can actually sit down, engage, and get a deal done." 

Last week the Offshore Alliance proposed a mediation process via the Fair Work Commission in a bid to break the deadlock. 

Negotiations ground to a halt over the weekend.

Regulator to visit Shell HQ

In the lead-up to the lockout last week, a spokesperson for the National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA) said it planned to visit Shell's Australian headquarters.

"NOPSEMA will conduct an inspection at Shell’s regulated business premises in the week commencing July 25," a spokesperson said.

"If any potential risks are identified, an offshore inspection will be scheduled." 

The ABC has contacted NOPSEMA for an update on whether the visit would still go ahead.  

NON UNION MERIT SHOPS

Sharing is caring: How a program is trying to retain young construction talent in rural Alberta

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Pilot project shares workers among rural Alberta construction companies

Mrinali Anchan · CBC News · Posted: Jul 26, 2022 

In a bid to encourage young construction workers to stay in rural Alberta, the Medicine Hat Construction Association and Alberta Construction Association proposed a worker 'loan' program to ensure employees have consistent work. (Africa Studio/Shutterstock)

Three construction associations created a worker-share program in a bid to encourage young construction workers to stay in rural Alberta — and so far it's working.

A variety of factors can impact the construction industry in rural Alberta, such as a project's nature of work, an aging workforce and a limited number of people moving into those communities, a spokesperson for the ministry of labour and immigration told CBC News.

But when John Digman noticed young talent leaving the construction industry in Medicine Hat, Alta., he knew he had to act.

"There are a lot of downturns in industry and people get laid off," said Digman, executive director of the Medicine Hat Construction Association. "They maybe go to one of the bigger accommodations — Edmonton, Calgary — and they don't come back sometimes."

Digman partnered with the Grande Prairie Construction Association and the Alberta Construction Association. They reached out to the provincial government, pitching a pilot project that would fund companies to share workers for projects in rural communities.

If a company were to win a number of project bids, for example, it may not have enough people to do the work required. Meanwhile, another company that lost those bids may have to lay off its employees because of a lack of work, Digman explained.

John Digman, executive director of the Medicine Hat Construction Association, noticed young talent leaving the construction industry in the southeastern Alberta city. He knew he had to act to retain them. (CBC)

The proposed pilot would allow companies with less work to lend their employees to companies with more work that are in need of workers, he said.

"What we'd love to do is say, 'Okay, I trust you as a company... How about I loan some of my workers through to you?'" Digman said.

"When the project's finished, they come back to us and hopefully we've got a bit more work then."

Some contractors had already been doing this on an ad hoc basis, Digman said.

After conducting further research and surveys from the community, Digman said it made sense to pursue the project.

The pilot project was accepted, and is related to government spending $3.6 million, over three years, on more than 620 work-integrated learning opportunities under an industry voucher program, a spokesperson told CBC News.

• Cement shortages are putting pressure on Canada's construction industry

The ministry of labour and immigration has spent $185,500 through workforce partnership grants to the Alberta Construction Association to support the pilot project, as well as address the shortage of skilled construction workers in rural Alberta, the spokesperson said.

The four-phase project is in Phase 3, connecting companies in the Medicine Hat and Grande Prairie, Alta., areas. 

The current phase runs until February, and will expand to include companies in Fort McMurray, Red Deer and Lethbridge.

'We need to work together': contractor

Dave Jeneke, owner of Pad-Car Mechanical, a Medicine Hat contractor, says the pilot project has gone well so far — and may prove helpful in keeping workers in the industry down the road.

Pad-Car Mechanical, which employs about 60 people, specializes in plumbing, heating design and installations. So far, Jeneke said, the company has loaned five workers for a project at the MCF feedlot in Brooks, Alta., a city in southeastern Alberta.

"There's no layoff, [workers] make the same wage, benefits are the same and it helps them feel like they're still part of the team," Jeneke said.

The ministry of labour and immigration has spent $185,500 through workforce partnership grants to the Alberta Construction Association to support the pilot project, as well as address the shortage of skilled construction workers in rural Alberta, a ministry spokesperson said. (Charles Haynes/Flickr)

Among the shared workers is Dalton Grover, a 24-year-old plumber. Grover, whose father and grandfather were also tradesmen, has worked in construction since he was 18.

Being part of the program has made it easier to stay close to family, as well as expand his skill set, he said.

"[I] got to meet new people, see how other companies do things," Grover said, referring to his experience working in Brooks. "The guys that were there were very good and helpful... [They] taught me a lot in the steam fitting world."

Jeneke said the pilot appeals to workers, in part, because any associated costs, such as accommodations and mileage, are covered by the employers — and they keep their benefits.

• Where have all the workers gone? Don't blame COVID, economists say

That added security may help retain workers in the construction industry, he added.

"The trades pay well... but [if it's] not the highest paying trade, the guys can perhaps go work on a pipeline, or they can get get a job working at a wind farm, or something that's paying a little bit more," Jeneke said. "With the prices of everything going up, I don't think they have too much of a choice.

"Much as we are competitors, we need to work together to keep our workforce happy, and here working in our area."

More nuclear heat for Arctic town

22 July 2022

The floating nuclear power plant at Pevek in the Russian Arctic is moving towards its goal of heating all the homes in the town.

The Akademik Lomosov at Pevek (Image: Rosenergoatom)

Moored to a special jetty at the Arctic port, the Akademik Lomonosov is a barge with two small nuclear power units aboard. The KLT-40S pressurised water reactors produce steam for turbine generator sets that generate 35 MWe each for a total of 70 MWe for the region. At the same time, heat is taken from the steam circuits and transferred to a pre-existing district heating grid that takes it to people's homes.

Changing this heating grid to use low-carbon nuclear heat instead of burning fuel oil has been a gradual process since the new power plant was first connected in June 2020. Engineers have needed to replace the central water supply lines as well as 77 individual 'heating points' as part of work to modernise the system and enable heating and hot water services to operate independently.

Now, all 57 apartment blocks in Pevek are technically ready to benefit from the heat of the nuclear power plant, said Vyacheslav Galaktionov, head of Elkon, the company carrying out the upgrades.

The Academik Lomonosov has more than enough capacity to supply all of Pevek, said Vitaly Trutnev, head of Rosenergoatom's arm for floating power plants yesterday as the company announced its connection to another section of the network. The nuclear plant now serves about three-quarters of the town, Trutnev said, adding that the connection process should be complete by the end of this year.

Not counting its contribution in terms of heat, the Akademik Lomonosov generated 175 GWh of electricity in 2021, avoiding the emission of 80,000 tonnes of carbon dioxide.

Researched and written by World Nuclear News

CRIMINAL CAPITALI$M

US investigation highlights risks from licence fraud

25 July 2022

The US Government Accountability Office (GAO) has recommended regulators introduce additional security features after its investigators were able to use forged licences to acquire small quantities of radioactive material.

Shipments of material obtained by GAO using fraudulent licences (Image: GAO)

The possession of radioactive materials in the USA is regulated by the US Nuclear Regulatory Commission (NRC), which issues licences controlling the type and quantity of materials that can be possessed. Using shell companies with fraudulent licences, GAO investigators were able to successfully purchase a so-called category 3 quantity of radioactive material of concern from two different vendors in the USA, the office said. Using a copy of a forged licence, GAO was able to obtain invoices, and paid the vendors, but refused to accept shipment at the point of delivery, ensuring that the material was safely and securely returned to the sender.

Radioactive materials which are commonly used for medical, industrial, and research purposes can be harmful and dangerous in the wrong hands, the GAO notes in its report to the House of Representatives Committee on Homeland Security. For example, terrorists could use such material in a radiological dispersal device - or "dirty bomb" - which uses conventional explosives to spread radioactive material. NRC's licensing process is based on risk associated with different quantities of radioactive material with categories 1 and 2 requiring the most stringent security measures for those who possess it or want to purchase it. Category 4 and 5 applies to quantities that are unlikely to cause permanent injury.

NRC requires a valid licence to possess Category 3 quantities of radioactive material, but the paper licences issued by the regulator - or by the 39 agreement states that are responsible for regulating radioactive materials within the state by arrangement with the NRC - can be altered and used to make illicit purchases of radioactive materials, GAO said. Current rules require vendors of Category 3 quantities of material to obtain a copy of the purchaser's licence but, unlike categories 1 and 2, no independent verification of the licence is required. The GAO's shell companies were successful in acquiring the material because they are not subjected to more stringent controls required for purchases of larger quantities of material, and the investigation shows that the current licence verification processes can be compromised, it said.

"By purchasing more than one shipment of a category 3 quantity of radioactive material, GAO also demonstrated that a bad actor might be able to obtain a category 2 quantity by purchasing and aggregating more than one category 3 quantity from multiple vendors," GAO said.

The GAO investigation is the latest in a series that began in 2006. The NRC has already begun work to address vulnerabilities identified in the earlier investigations, GAO said, but it could take until the end of 2023 to implement a process requiring licence verification for category 3 quantities.

GAO has made two recommendations: firstly, that NRC "immediately" requires vendors to verify category 3 licences; and secondly, that it adds security features that improve the integrity of the licensing process and make it less vulnerable to altering or forging licences. "To address our recommendations, NRC proposed a rulemaking to strengthen licensing. However, vulnerabilities will remain until NRC implements the rule," it said.

In a response to the GAO study, NRC Executive Director for Operations Daniel Dorman said: "We take your recommendations seriously and will continue our efforts to strengthen the safety and security of radioactive materials."
 
The GAO report, Preventing a Dirty Bomb: Vulnerabilities Persist in NRC's Controls for Purchases of High-Risk Radioactive Materials - which includes the NRC's response - can be read here.

Researched and written by World Nuclear News

First contract signed for Romanian nuclear refurbishment

22 July 2022

Canada's Candu Energy has signed the first contract for the refurbishment of unit 1 at Romania's Cernavoda nuclear power plant. The extensive re-tubing of the reactor will take its operational life to 2060 and directly help enable net-zero goals.

Romania's Cernavoda nuclear power plant (Image: Nuclearelectrica)

The work agreed with Cernavoda's owner, Nuclearelectrica, is worth CAD64 million (USD49 million) and covers engineering and early procurement for the retubing of the reactor core. Candu units are pressurised heavy water reactors designed to operate for 30 years, with a further 30 years available subject to refurbishment. This means the replacement of key components in the reactor core: fuel channels, pressure tubes and feeders.

As the holder of the original design, Candu Energy has taken part in this work several times before at the Darlington, Bruce and Point Lepreau plants in Canada, as well as Wolsong in South Korea and Embalse in Argentina. Candu Energy said it would be sending specialised staff to Romania, while Nuclearelectrica noted it had hired 100 people, some of whom would be spending time in Canada at Candu units that have already undergone this process.

"Romania needs renewed nuclear power capacities for producing clean, stable and affordable energy, as a solution for achieving energy security and the protection of consumers," said Cosmin Ghiță, CEO of Nuclearelectrica. He noted that Cernavoda 1 has met 9% of the country's electricity needs over its 25 years of operation so far while avoiding 125 million tonnes of carbon dioxide.

Romania's nuclear strategy

Nuclearelectrica plans to operate Cernavoda 1 until the end of 2026 and then undertake the refurbishment from 2027 to 2029. Once it is approved for restart by safety regulators, unit 1 should then operate until around 2060. The project therefore represents a major plank in Romania's policy to reach net-zero in terms of carbon dioxide emissions from 2050. The total cost of the refurbishment is estimated at EUR1.85 billion (USD1.85 billion).

Cernavoda 2 will also be a candidate for refurbishment, but it is nine years younger than unit 1 and would be due for this in 2037.

In parallel to refurbishments, Nuclearelectrica wants to complete and bring into service two half-built Candu units at Cernavoda, units 3 and 4. The first contracted work for this, with Candu Energy as well as Sargeant & Lundy, began in November last year. Unit 3 could be in operation by 2031.

A third aspect of Romania's nuclear power strategy relates to small reactors. Last year Nuclearelectrica signed agreements with NuScale towards the goal of bringing one of the US-based company's reactors online in 2028 at Doicești. It was recently announced that this would benefit from USD14 million in US federal support for front end engineering and design.

Researched and written by World Nuclear News

The Bullish Case For Uranium Stocks

By Ag Metal Miner - Jul 25, 2022,

• Staunch opposition to nuclear energy in Japan and Germany is beginning to turn.
• 
  
• Growing demand for cleaner energy sources is giving rise to a potential boom in nuclear plant production.
• 
  
• As the world revisits nuclear power as a potential clean source of energy, uranium stocks could get a needed bump.

Sizewell C plant gains approval highlighting the growing case for investment in uranium stocks as the world shifts towards self-sufficiency.

Friday saw the French energy firm EDF gain approval for their Sizewell C nuclear power plant, as the company seeks to expand on their already established Sizewell B plant in Suffolk. This is a particularly notable breakthrough as it appears to highlight a growing global trend as sentiment softens toward nuclear. Sizewell C has had plenty of opposition in its time, with local protests ensuring that authorities go through four rounds of consultancy from the inception of the project in 2012.

However, events in Russia have fast-tracked efforts to move towards a more self-sufficient energy mix. Unlike most energy sources, which can be massively influenced by geopolitical relationships and pricing fluctuations, the costs associated with a Nuclear power plant are less about the price of Uranium and more about the ongoing running costs of running the plant safely. While the plant will face plenty of further opposition, the question of whether EDF gets this expansion off the ground is less important than the wider picture for Uranium demand.

Staunch opposition in Japan and Germany starts to turn

While the Sizewell C plan faced opposition from 10,000 East Sussex residents, experiences in Fukushima have ensured that pretty much the entire Japanese population stood against turning the reactors back on. However, that is exactly what their Prime Minister plans to do, with Fumio Kishida requesting that his Minister for Industry gets up to nine nuclear reactors operational by Winter.

Germany is another traditionally staunch critic of nuclear power, with the country providing consistent opposition against efforts within the EU to include nuclear energy as a green sustainable investment in its “taxonomy.” However, the evident risk posed by German overreliance upon Russian energy has clearly seen a shift, with the EU finally including Nuclear in their taxonomy which now labels the energy form as being sustainable. This opens the door for European green bonds to invest in nuclear projects for the first time. According to 2021 figures, EDF could have €7.9 billion worth of projects eligible for green funding going forward. That is by far the largest segment in consideration.

Source: Bloomberg

With global attitudes shifting in favour of nuclear once again, we can expect to see demand for the raw material pick up in the coming years. Supply will also likely expand, although it takes time to get a mine operational once again. Recent talk from the United States over the need to swiftly develop the means to produce uranium concentrate highlight to global push towards building a relatively self-sufficient nuclear industry. As the world transitions towards greater electrification, it is also clear that we cannot continue to burn fossil fuels to create that electricity. Just as the EU have now classified, nuclear largely does allow for the creation of energy in a sustainable manner if produced and stored properly.

Related: High Crude Prices Are Here To Stay

While IG does not allow the trade of the underlying Uranium price itself, we can use the Sprott Physical Uranium Trust as a good proxy for underlying price. The comparison below highlights the correlation seen over the course of the past year. We can see that price has largely taken place within a well defined range over much of the past year, with the declines seen throughout global markets helping to dampen elevated sentiment seen in March and April. However, with support coming into play here, the underlying fundamentals behind uranium demand and supply should help elevate prices once again.

Source; TradingView

Yellow Cake

Yellow Cake is the primary uranium investment vehicle in the UK, with the company issuing shares and stockpiling the product over time. We have seen YCA shares similarly head lower over the course of the past three-months, bringing price 28% lower in the process. However, it is notable that price remains above the £2.94 swing-low established in late-February. As long as the price remains above that key pivot level, this stock looks attractive.

Source: ProReal Time

Cameco

Uranium giant Cameco is another trustworthy name in the field, with the producer clearly trending in the right direction despite recent weakness. That decline takes us to 26% below its April high, yet the uptrend is evident on this weekly chart. With that in mind, bullish positions are favoured as long as the price remains above the $18.02 swing-low.

Source: ProReal Time

Global X Uranium ETF

Looking at the wider uranium space as a whole, the Global X Uranium ETF allows for investment into a wide range of companies involved in the mining of uranium and production of nuclear components. Clearly we can see that things are less clear-cut for the bulls here, with the price looking at risk of rolling over. However, the bullish story still remains in play until we break back below the $17.27 swing-low established last August.

Source: ProReal Time

By CityAM