EnergyQuest has just released its Australian LNG Monthly for June 2022.
The report has a detailed analysis of Australian LNG exports in FY 2021. China lost its position as Australia’s top export destination in FY 2022 with 25.0 Mt (38%) of Australian export volume, less than 28.3 Mt (41%) in FY 2021. In the 11 months to May Chinese LNG imports decreased by 4% while imports from Australia fell by 12% to 25.0 Mt from 28.3 in the corresponding period in 2021, with the result that Australia’s market share fell to 38% from 41% a year earlier.
The fall in Australian China deliveries of 3.3 Mt was the largest of any supplier to China and was offset by increased China deliveries from Qatar (+2.3 Mt) and the US (+1.0 Mt).
However, EnergyQuest estimates Australia exported a record 82.6 Mt of LNG in the 12 months to 30 June 2022, well up on the 77.3 Mt in FY 2021, and more than the previous record set in FY 2020 of 79.3 Mt.
Some of the other highlights of this report are:
- In June Australian projects shipped a record 7.31 million tonnes (Mt) (106 cargoes), up on the 6.91 Mt (101 cargoes) in May and higher than the previous record of 7.2 Mt in October 2021.
- EnergyQuest estimates that Australian LNG export revenue increased in June to a record $7.18 billion, up from $6.38 billion in May and up by 135% on June 2021.
- Compared with May, Australian projects delivered 7 fewer cargoes to China, Korea and Japan in June. There were no cargoes delivered to Europe.
- West Coast shipments increased to a record 5.5 Mt in June (5.0 Mt in May), with 79 cargoes in June compared to 72 in May.
- East coast LNG shipments decreased to 1.8 Mt in June (1.9 Mt in May), with 27 cargoes compared to 29 in May, and 27 cargoes of 1.8 Mt a year ago.
- There were four spot cargoes reported for shipping from Australian projects in June, two spot cargoes from the east coast and two spot cargoes from the west coast (4% of total shipments). There were five spot cargoes in May.
- Queensland exported gas to the other states in June, with net flows in a westerly direction. Westerly flows were seen for the entire month. Net gas flows from Queensland to other states were 6.2 PJ in June.
- Queensland short-term domestic gas prices in June were significantly higher averaging $36.85/GJ ($28.68/GJ in May) at Wallumbilla and $37.93/GJ ($31.67/GJ) in Brisbane. Southern short-term domestic gas prices in June were higher compared to those in May, averaging $40.70/GJ ($29.87/GJ) in Sydney.
- ·Power generation in June from coal fell to a record low for this time of year, with generation down by 747 GWh from a year earlier, and down slightly on May. The coal share of NEM generation fell to 56%, down from 63% a year earlier, with lower generation in NSW and Victoria.
- Gas generation was up by 166 GWh from a year earlier. Gas-fired generation increased in NSW, Queensland, South Australia and Victoria compared with May. Gas-fired generation decreased in Tasmania compared with May. Gas’s overall share of the market increased to 10.8% from 10.2% a year earlier.
Information about the EnergyQuest Australian LNG Monthly is available by clicking here.