Some of the highlights from the EnergyQuest May 2019 LNG Report are:
- Estimating the environmental benefits of LNG through coal to gas switching in consuming countries requires an analysis of the energy market in each country. There is little coal to gas switching in two of Australia’s LNG markets Japan and Singapore. The major environmental benefits of Australian LNG exports through are likely to occur in China, Korea Taiwan, India and Malaysia, amounting to around 78 Mt CO2-e avoided in 2018.
- Total Australian LNG shipments in May were 6.4 million tonnes (Mt) (94 cargoes), down from 6.7 Mt (98 cargoes) in April.
- Australia’s May shipments were 75 Mtpa on an annualised basis, just behind Qatar nameplate capacity of 77 Mtpa.
- Australian projects delivered 38 cargoes to China in May, up from 36 in April and more than delivered to Japan.
- The Brent oil price fell to US$63.16/bbl on 3 June.
- Sling North Asian spot LNG prices have fallen steadily during May, from US$5.40/MMBtu (June delivery) on 29 April to US$4.27/MMBtu (July delivery) on 3 June.
- West coast shipments decreased to 4.6 Mt in May (4.8 Mt in April), with 68 cargoes in May compared to 70 in April.
- East coast LNG shipments decreased to 1,765 kt in May (1,880 kt in April), with 26 cargoes in May compared to 28 in April.
- Queensland imported no gas from other states in May, with flows entirely in a westerly direction. Net gas flows from Queensland to other states were 5.7 PJ in May.
- CSG production from fields operated by the LNG producers was 117.9 PJ in May, up 3.0 PJ from 114.9 PJ in April.
- In the state budget the Queensland Treasurer announced an increase in petroleum royalties from 10.0% to 12.5%.
- Short-term domestic gas prices in May were lower than those in April.
- East coast spot LNG netbacks at the end of May were lower than east coast domestic short-term gas prices. However, the oil-linked netback at Wallumbilla was $9.98/GJ, much closer to actual prices than netbacks based on spot LNG prices.
- East coast gas-use for power generation was up by 9% (1.1 PJ) compared with a year earlier and slightly higher than in April
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