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27% rise in Australian gas output

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LNG Industry,

Surging production lifted total Australian natural gas output to a record 3770 PJ in the 2017 FY, up 27% from the previous 12 months.

East coast LNG production and east coast domestic gas production both increased in the second quarter, up by 19.4% to 5.0 million t of LNG exports, and by 11.9% to 193.2 PJ of domestic gas. Queensland coal seam gas production rose by 20% to 333 PJ, and offshore Victorian production grew by 13% to 110 PJ in the final quarter of FY 2017.

The estimates are contained in the just released September quarterly review by respected independent energy consultancy, EnergyQuest.

“East coast gas production is catching up with demand,” said EnergyQuest CEO, Dr Graeme Bethune.

“Queensland is importing less gas to the point where it is increasingly self-sufficient. Even with its LNG plants, the State is importing only about 2 PJ per month, or 1.4% of the east coast supply. There has also been a net flow of gas south from Queensland since the first week of June, for the first time since November 2015. However, NSW, SA and Tasmania are increasingly reliant on gas imports from Queensland and offshore Victoria. NSW imports around 10 PJ per month and even South Australia nearly 4 PJ,” Dr Bethune said.

“Although there has been an increase in domestic gas supplies, east coast prices remain globally uncompetitive. While on a comparable basis, short-term east coast gas prices in Q2 were AUS$0.26 – 1.77 per gigajoule below Japanese import prices, Japanese prices are among the highest in the world, as are now east coast short-term prices and prices for new gas contracts.”

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