Australian LNG Monthly April 2023

EnergyQuest has just released the April 2023 Australian LNG Monthly report.
Don’t let the comfortable shoulder fool you
We are now in that comfortable shoulder period, between the northern winter and the Australian winter, and it is easy to become complacent as it all seems back to normal.

  • Asian spot LNG prices hit a 23-month low on Friday on mild weather and weak restocking demand in China, Japan and Korea, while Europe enjoys 60% full inventories ahead of summer.
  • The average LNG price for June delivery into northeast Asia LNG-AS was US$11/MMBtu, the lowest since June 2021.

But the fundamental market tightness is still there. Rising demand for natural gas in Asia and the Middle East is set to offset a decline in other regions this year, helping to keep the global market tight, according to the International Energy Agency.

Shell exits Browse: Shell has signed an agreement to sell its 27% stake in the carbon intensive Browse natural gas project off the northwest coast of Australia to BP, one of Australia’s largest untapped gas fields.
Origin Energy is performing well in these unusual times of market intervention with its diverse portfolio of LNG, power generation and retail operations.

Some of the statistical highlights of this report are:

  • Australian LNG projects shipped 6.73 Mt in April (97 cargoes), down on 7.16 Mt (104 cargoes) in March. The projects shipped an average 3.2 cargoes per day, less than the 3.4 per day average in March. 
  • EnergyQuest estimates that Australian LNG export revenue in April was $6.0 billion, lower than the $7.1 billion in March, and down by 4% on April 2022. 
  • Overall, Australia’s April 2023 shipments were 81.9 Mtpa on an annualised basis.
  • Queensland imported gas from the other states in April, with net flows in an easterly direction from other states of 0.69 PJ in April.
  • Queensland short-term domestic gas prices in April were higher averaging $12.12/GJ ($8.93/GJ in March) at Wallumbilla and $12.56/GJ ($9.19/GJ) in Brisbane compared to those in March. 
  • Southern short-term domestic gas prices in April were also higher compared to those in March averaging $12.88/GJ ($10.12/GJ) in Adelaide, $12.22/GJ ($9.57/GJ) in Sydney and $11.24/GJ ($9.27/GJ) in Victoria.

Information about the EnergyQuest Australian LNG Monthly is available by clicking here.