LNG

Australian liquefied natural gas export plants shipped 6.9 million tonnes of cargoes in November, higher than the previous month but slightly down on the 7.1MT dispatched in November 2019, though still keeping the nation as the World No. 1 LNG exporter.

According to the consultants EnergyQuest, a total of 101 cargoes left Australian liquefaction plants on the West and East Coasts, up on October’s 98 cargoes.

“Deliveries to major North Asian markets were higher in November compared with November 2019,” said the report.

“Australian projects delivered a total of 91 cargoes to China, Japan and Korea in November, up from 83 cargoes a year earlier,” it added.

Australian projects delivered 38 cargoes to China in November, after delivering 31 in October and 38 in November 2019.

Thirty-nine deliveries were made to Japan in November, more than the 37 delivered in October and up on 38 delivered in November 2019.

Australia delivered 14 cargoes to South Korea in November, double the deliveries in the same month a year ago when seven cargoes were delivered.

“Average LNG plant capacity utilisation was 95.7 percent in November up from 90.0 percent in October,” said EnergyQuest.

“Australia will export around 78MT for 2020, slightly higher than the 77.5MT exported in 2019, and more than Qatar nameplate capacity,” the report added.

East Coast coal-seam-gas-to-LNG projects, Queensland Curtis LNG, Australia-Pacific LNG and Gladstone LNG, again shipped a record amount, reaching 2.126MT (32 cargoes) in November, eclipsing the record set in October of 2.050MT.

“The East Coast projects operated at 102 percent of nameplate capacity during November. This is the first time in the history of the East Coast production they have exceeded nameplate capacity,” stated the report.

LNG spot cargo prices in Asia were continuing to increase with cargoes for January delivery reported at US$5.80 to US$9.20 per million British thermal units (A$12.00 per gigajoule).

“There were six November spot cargoes reported from the East Coast, three from APLNG and three from GLNG, and 10 spot cargoes from the West Coast (16 percent of total shipments),” said EnergyQuest.

“This was significantly higher than Queensland short-term domestic gas prices in November which averaged A$5.88 per gigajoule at the Wallumbilla Hub and A$6.26 per gigajoule in the Brisbane market,” said the report. 

Chinese liquefied natural gas imports for June increased by 14.9 percent and the shipments for the first half put the country on track for another year of record regasification volumes.

Chinese liquefied natural gas imports increased in May compared with the year-ago period as new regasification facilities are planned, including in Hong Kong.

LNG shipments in May were 4.43 million tonnes, lower than in the previous month’s 4.54MT, though higher by 6.90 percent than the 4.15 MT received in May 2018.

LNG imports for the first five months of 2019 rose 20.3 percent from a year earlier to 23.87MT, according to the nation's General Administration of Customs.

China imported a total of 4.54MT of LNG in April 2019 compared with 3.39MT in April 2018, a rise of 33.9 percent.

The total of LNG imports for the January-May period was given as 23.88MT versus19.87MT in January-May 2018, an increase of about 20.3 percent.

Among the main suppliers of shipments to China in May 2019 were nations such as Qatar, Australia, Indonesia and Nigeria.

China’s National Development and Reform Commission has also been working to encourage companies to expand the gas pipeline network, improve gas storage and is now seeing results in enabling the system to meet peak demand when required.

That’s as Hong Kong Electric Co. and Castle Peak Power Co., two local power companies in the autonomous Chinese territory, said they had signed a supply deal for the former British colony’s first imports of LNG and for the charter of a floating storage and regasification unit.

Hong Kong is moving to use more natural gas to fuel its electric power generation instead of coal or oil.

Both Hong Kong-based power companies said they have signed an agreement with Shell Eastern Trading, a unit of Royal Dutch Shell, for a long-term LNG supply for the Hong Kong Offshore LNG terminal.

Shell will supply around 1.2 million tonnes per annum of LNG to both companies from its global LNG portfolio once the project has been completed.

Castle Peak Power and Hong Kong Electric said that their joint venture had signed an agreement with Japanese shipping line Mitsui OSK Lines to charter an FSRU.

Australian LNG exports in June amounted to a total of 5.47 million tonnes and an estimated 81 cargoes as annual shipments grew, taking the nation closer to becoming the largest global exporter with sustained Chinese demand remaining the regional highlight.