EnergyQuarterly Report December 2018

4 December 2018

The December 2018 EnergyQuarterly report has just been released, with comprehensive Australian oil and gas data for the September Quarter 2018 plus analysis of the latest developments. Here are some of the highlights:

  • Coal Seam Gas (CSG) production increased by 2.3% or 7.9 PJ qoq to a record 353.4 PJCooper Basin production also increased, by 9.1% qoq. However offshore Victorian production was 16.0% lower qoq (-16.7 PJ), reflecting mostly lower Gippsland production but also lower Otway and Bass Basin output.
  • All three major CSG producers in Queensland achieved record production, but the biggest contributor was QGC’s Woleebee Creek field.
  • Contrary to popular myth, QCLNG, APLNG and GLNG are not sucking gas out of the east coast market. Equity gas production by the three Queensland LNG projects was 336.3 PJ, representing a surplus of 21.1 PJ over the 315.2 PJ exportedand used in fuel gas to power their processing plants. Queensland exported 8.4 PJ to the southern states in Q3 2018.
  • Capacity utilisation across Queensland’s three projects increased to 83% in Q3 2018, compared to 77% in Q2 2018.
  • East coast gas-use for electricity generation is being impacted by hydro, wind and solar. Gas generation in Q3 was the lowest since Q4 2016 (down 25% qoq) and plants only averaged 14% of capacity
  • Renewable generation excluding hydro increased by 23% qoq and accounted for 13.2% of NEM generation.
  • The east coast market was tighter than in Q3 2017, reflected in mostly higher short-term gas prices. Gas used for LNG exports (including fuel gas) increased by 9.3 PJ qoq. Taking account of the 9.5 PJ fall in production, total domestic supply fell by 18.8 PJ, but was offset by a fall in gas-use for power generation of 11.4 PJ and of other consumption of 5.2 PJ.
  • Total Australian petroleum production set new records in Q3 2018 and almost took the country to a run rate of one billion barrels of oil equivalent per annum
  • There was strong performance by LNG projects, shipping 18.1 Mt, up by 24.0% qoq. The start-up of Ichthys in October puts Australia in a position to overhaul Qatar as the world’s biggest LNG producer. 
  • At full capacity, the 8.9 Mtpa Ichthys project will deliver about 135 MMboe, including 100,000 bbl/d condensate and 1.6 Mtpa of LPG. 
  • Wheatstone also has liquids-rich gas and has kicked off a surge in condensate production that will accelerate with Ichthys and Prelude. Condensate production had already reached an annualised rate of $7.6 billion in Q3 2018 and is now worth almost double Australia’s oil exports.
  • Old gas fields and marginal gas plays shelved for decades are being revisitedboth onshore and offshore as explorers re-examine their economics in the high price environment of the east coast gas market. The trend has been gathering pace for the past 18 months.
  • Chevron extended its lead over Shell as Australia’s largest petroleum producer in Q3 2018, with production of 45.9 MMboe versus Shell’s 36.0 MMboe.
  • The Santos acquisition of Quadrant will see it move up the national league table of petroleum producers to become Australia’s sixth largest petroleum producer. 

Further infomation, including the brochure with full table of contents, can be obtained at:

Contact us if you would like a sample copy of the report.

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