EnergyQuest Australian LNG Monthly August 2020

EnergyQuest has just released its Australian LNG Monthly for August 2020. Some of the highlights are as follows:

  • Australian LNG shipments in August were higher compared with July, primarily due to increased production at the North West Shelf and Gorgon projects 
  • Lower oil prices are continuing to have a significant effect on Australian LNG with extended maintenance, and continued cargo deferrals.  LNG revenues in July (the latest data) were $2.5 billion, well down from $4.4 billion reached in March prior to the drop in oil prices.
  • Cargoes continue to be delayed during August with some cargoes being used as floating storage. 
  • Deliveries to major North Asian markets were lower compared with August 2019. 
  • Average import prices for Australian LNG fell from US$8.55/MMBtu for China in July 2019 to US$7.34/MMBtu (A$9.89/GJ) in July 2020. Notwithstanding repeated claims to the contrary, there is no sign that Australian LNG is being dumped offshore at less than Australian prices.
  • Petronas is reported to have sold a spot cargo from Gladstone for November loading for US$4.80-4.90/MMBtu (A$6.35/GJ), significantly higher than Queensland short-term domestic gas prices in August whichaveraged A$3.96/GJ at Wallumbilla and A$4.05/GJ in Brisbane.
  • The Gladstone LNG producers had a production surplus in August, with total production from LNG producers 8.0 PJ more than total LNG exports.
  • Electricity generation continues to be unaffected by restrictions caused by COVID-19. East coast generation was only down by 2% in August compared with a year earlier. East coast gas-use for generation was down by 4.15 PJ (-25%) on a year earlier and 5.03 PJ lower compared with June, being replaced by solar and wind generation

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