LNG

Japanese liquefied natural gas imports increased for a third successive month in June as they edged higher by 1.7 percent and year-on-year costs doubled while volumes increased from Asia, Australia and particularly Russia.

Australian LNG plant operator Woodside Petroleum posted an annual net loss of US$4.02 billion, including non-cash impairments, as the LNG price plunge in 2020 cost the company US$1.50Bln in revenues.

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. 

Australian deliveries of liquefied natural gas cargoes to nations like China and Japan are reported to be as normal as projects can continue to live with current low oil prices of around US$30 per barrel and a price of about US$3.60 per million British thermal units.

Japanese spot liquefied natural gas cargoes delivered in October cost almost half the price of a year ago but cost 0.50 per million British thermal units more than in the previous month even amid an excess of supplies weighing down the market.