Reuters reports that, even just a year ago, many thought importing LNG into Australia would not make sense. Now, however, shortages are expected as soon as 2022. As a result, there are currently five import projects being proposed, including one by ExxonMobil.
According to Reuters, three LNG export plants located in northeastern Australia have taken gas out of the local market and caused higher prices, as most of the new supply comes from more expensive coal seam gas wells. Simultaneously, Reuters reports that drilling bans in New South Wales and Victoria have curbed new supply to fill a gap as the offshore fields that meet approximately 40% of the southern states’ demand are starting to dry up.
If prices do not fall, and if supply does not improve, the Australian competition regulator has warned that manufacturers that depend on gas will have no option but to shut. For instance, Reuters highlights a chemicals plant located in Melbourne that will be shutting down partly because of high gas prices.
Read the article online at: https://www.lngindustry.com/regasification/31052019/exxonmobil-lng-imports-into-australia-highly-realistic/