2019-05-08 11:15:00
AUSTRALIA'S LNG UPDOWN
PLATTS - Exports of LNG from the Port of Gladstone in Queensland, Australia, in April eased back from the all-time record set in March while volumes to South Korea and Japan slumped, data from the Gladstone Ports Corporation showed Monday.
The port, on Australia's east coast and home to the region's three LNG terminals, exported 1.78 million mt of the fuel during the month, up 6% year on year but down 8% from the March high of 1.93 million mt, the data showed.
Terminals at the port include the Origin-ConocoPhillips Australia Pacific LNG, the Santos-led Gladstone LNG and Shell's Queensland Curtis LNG.
Together they have an annual nameplate capacity of 25.3 million mt. The April result translated to an annualized rate of 22.43 million mt, which if maintained for 12 months would leave 2.87 million mt of unused capacity. The March record was also below capacity, at an annualized rate of 22.69 million mt.
Energy consultancy EnergyQuest said recently the volumes from Australia's east coast were likely to be "as good as it gets" and that by the middle of the next decade two of the six trains at Gladstone could be shut down.
Wood Mackenzie said Monday the forthcoming Australian federal election and expected Labor win over the incumbent Liberal-National Coalition could cause issues for Australia developing upstream supply.
The comments were centered around Labor announcing late last year its intention to strengthen the existing Australia Domestic Gas Supply Mechanism, which is designed to curb LNG exports in the event of a forecast shortage of domestic gas. Labor said it would make it permanent rather than its current temporary status.
"Introducing a permanent export control trigger is not the solution to rising east coast gas prices. Cheap supply of gas will no longer be available. By 2030, the development cost of new upstream supply to meet both the LNG and domestic gas demand will be around the LNG net back price. Fundamentally, the cost to deliver new gas to market is increasing and, therefore, wholesale gas prices are on the rise," Wood Mackenzie senior research analyst David Low said.
"Intervening in the market when prices are too high will discourage operators from bringing on new supply of gas where the development cost is above the price trigger. This will exacerbate the gas shortage crisis," Low said.
GLADSTONE EXPORTS
Gladstone's LNG exports to South Korea during April hit a six-month low of 169,691 mt, which was down 27% year on year and 25% from March, the GPC data showed.
Volumes bound for Japan were at 67,166 mt, a 50% drop from a year earlier and 52% fall from March. It was the least sent to Japan in a single month since last August.
Gladstone's largest recipient of LNG, China, was sent 1.29 million mt, which was up 15% year on year and 2% lower than March.
Malaysia, meanwhile, saw a record 249,114 mt, which was double the volume registered in April last year and 34% higher than the March total.
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Earlier:
2019, April, 19, 09:25:00
AUSTRALIA'S LNG PRODUCTION UP 11%
Australia's largest gas producer, Woodside, Thursday said LNG production from its three facilities rose 11% year on year in the January-March quarter, and maintained its 2019 production guidance.
2019, April, 17, 10:40:00
AUSTRALIA'S SANTOS PRODUCTION UP 33%
First quarter production of 18.4 mmboe was a record for Santos and 33% higher than the corresponding quarter, primarily due to sustained strong asset performance and the acquisition of Quadrant Energy.
