EnergyQuest Australian LNG Monthly January 2021

EnergyQuest has just released its Australian LNG Monthly for January 2021. Some of the highlights are:

  • Notwithstanding COVID-19, LNG imports by North Asian countries (including Taiwan) increased by 2.5% to a total of 200.3 Mt LNG in 2020, 4.8 Mt higher than in 2019 when 195.5 Mt was imported. 
  • China remains far and away the world’s largest gas importer, well ahead of number two, Germany and number three, Japan.
  • Although China is expected to overtake Japan as the world’s largest LNG importer, Japan remained the world’s largest LNG importer in 2020, even though the country recorded a fall in LNG import volumes in 2020 compared to 2019. 
  • Australia delivered a total of 78.7 Mt LNG in 2020, up 2.2% from 77.0 Mt delivered in 2019.  China and Japan were Australia’s top LNG export destinations in 2020, both taking 29.1 Mt.
  • Australian LNG shipments in January 2021 were higher compared with December 2020, primarily due to increased production at the Pluto project and the restart of production at the Prelude project
  • West Coast shipments increased to 4.6 Mt in January (4.4 Mt in December), with 66 cargoes in January compared to 63 in December.  
  • East coast projects shipped 2.068 Mt (31 cargoes) in January, just below the record set in December of 2.186 Mt.  
  • As of 29 January, the Platts JKM LNG spot price for March was US$8.76/MMBtu on the back of a freer shipping market, and warmer temperatures in Asia.
  • East coast electricity generation was down by 5% in January compared with a year earlier due to a cooler summer and COVID-19. With increased generation from Solar PV, operational (i.e. commercial) generation was down by 7.1%.
  • Reflecting lower demand and higher renewable generation, generation from coal was down by 10% and from gas by 38% on a year earlier. 
  • Queensland short-term domestic gas prices in January were lower compared to those in December averaging $6.52/GJ ($7.05/GJ in December) at Wallumbilla and $6.54/GJ ($6.97/GJ) in Brisbane.
  •  Southern short-term domestic gas prices in January were lower than those inDecember averaging $6.06/GJ ($6.37/GJ) in Sydney and $5.44/GJ ($5.95/GJ) in Victoria, but higher averaging $6.49/GJ ($6.33/GJ)in Adelaide.

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