Australian LNG exports up in first nine months

Australia exported 57.7 million tonnes of liquefied natural gas in the first nine months of the year, slightly higher than the 57.4 million tonnes exported in the same period of 2019, energy consultancy Energy Quest noted.

The consultancy said in its monthly report that shipments have fallen by 3.8% in the six months since the outbreak in April. Australian LNG exports reached 37.9 million tonnes in the same period. The LNG market under the outbreak has clearly had some impact on exports, with total LNG demand increasing in China but declining in Japan and South Korea, despite an increase in demand from China.

Overall, the 3.8% decline was modest, given the impact of the epidemic on importing countries and the complexity of LNG production and transportation during the epidemic.

Australian LNG shipments in September were lower than in August, mainly due to lower production from the North West Shelf and Gorgon projects. The main impact of lower oil prices was revenue.LNG revenue in August (the latest available data) was $2.1 billion, well down from $4.4 billion in March before the fall in oil prices. Total revenues for the first eight months of the year were $27.4 billion, down $5.1 billion, or 15.7%, from 2019, according to the report.

Deliveries to key North Asian markets were up in September this year compared to September 2019. Australian projects delivered 84 cargoes to China, Japan and South Korea in September, up from 82 cargoes in the same month last year.LNG spot prices continued to rise, with November deliveries at $4.50-$5.00/MMBtu (A$6.68/GJ), significantly higher than Queensland short-term domestic gas prices in September, when Wallumbilla and The average prices in Brisbane are A$4.46/GJ and A$5.05/GJ respectively.