LNG

Australian natural gas and oil production set new records in the third quarter and almost took the country to a run rate of one billion barrels of oil equivalent per annum, led by LNG output in Western Australia and the coming on stream of the Ichthys plant in the Northern Territory.

Australia’s LNG exports are heading for the 60 million tonnes mark by the end of 2017 as two more projects come on stream and other plants ramp-up their output, earning the country A$36 billion (US$27Bln) if oil prices remain at current levels.

The Queensland coal-seam gas sector in eastern Australia has ongoing spending of more than A$2 billion (US$1.5Bln) per annum, though much of the CSG from the 7,331 wells drilled is required to service the three CSG-to-LNG plants, executives heard at a forum in Brisbane.

Australian liquefied natural gas export values climbed to a 22-month high as more cargoes were shipped at higher prices to nations such as Mexico in the backyard of the US, one of Australia’s LNG market rivals.

The newest export plant, the Gorgon facility on Barrow Island in Western Australia, shipped five cargoes last month as it continued to ramp up production while India emerged as a main target for shipments from some of Australia’s seven export facilities now operating.

Aug 29 (LNGJ) - Investment in Australia's oil and gas sector peaked in Q4'2013 and is now "firmly on the wane" as persistently high labour costs reduce the number of new projects, according to Energy Quest.

An array of new liquefaction projects are nearing completion, with four terminals set to start production in the next 12 months, the consultancy noted in its latest quarterly report.