EnergyQuest has released its latest Australian LNG monthly report, covering the July period.
It shows record shipments including higher contributions from Gorgon and NWS. The report’s highlights are as follows:
- In July Australian LNG shipments jumped to a record 5.4 million t (81 cargoes), up from 4.9 million t (74 cargoes) in June, reflecting higher Gorgon and North West Shelf (NWS) output and steady Queensland output. West coast projects shipped 3.7 million t in July (up from 3.2 million t in June) and Queensland projects shipped 1.7 million t, the same as in June.
- At 1.4 million t (21 cargoes) Gorgon production was just behind Australia’s largest LNG project, the NWS, which shipped 1.5 million t (23 cargoes).
- On average west coast projects operated at 108% of nameplate capacity on an annualised basis but Queensland projects only operated at 81%, notwithstanding APLNG averaging 110%.
- The volume of LNG deliveries from Australia was higher in July than June (5.1 million t compared with 4.8 million t). Japan, China and Korea continue to be the dominant destinations for Australian exports, comprising 89% of deliveries in July (92% in June).
- Exports to South Korea are growing quickly. Compared with July 2016, deliveries to Korea were up by almost 300% in July 2017, with cargoes from APLNG, GLNG and Gorgon. Deliveries to China were up 59% and to Japan up 10%.
- On the east coast, short-term domestic gas prices continued to ease in July with falls of about US$1/GJ. Brisbane prices continue to be lower than those further south, notwithstanding continuing significant LNG production. Average prices in July were US$6.79/GJ in Brisbane, US$9.76/GJ in Sydney, US$8.92/GJ in Adelaide and US$8.97/GJ in Victoria. Short-term prices are well below those in July last year and February this year. Differences between Brisbane prices and those in Sydney and Adelaide reflect transport costs.
- Queensland gas imports from other states have slowed considerably. Net easterly flows along the South-West Queensland Pipeline peaked at 335 TJ/d in early January but gas has flowed westward since June at an increased rate averaging 85 TJ/d in July. Gas production from the upstream LNG gas processing plants averaged 3,631 TJ/d in July, up from 3,570 TJ/d in June. Higher production appears to reflect higher domestic demand.
- Oil linked LNG netbacks are estimated to have been above east coast short-term domestic prices in July, ranging from US$0.28/GJ higher in Adelaide to US$2.23/GJ in Victoria.
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/15082017/energyquest-releases-latest-australian-lng-monthly-report/
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