Gas Processing & LNG is Produced by Gulf Publishing Holdings LLC

Australia closing in on Qatar as world's top LNG exporter

SYDNEY (Reuters) — Australia expects to increase exports of LNG by 16% from mid-2018 as $180 B in new projects hit their stride, nearly catching up with Qatar, the world’s top supplier.

Inpex Ichthys Small
 Inpex Corp’s Ichthys. Photo courtesy of Inpex Corp.

Rising LNG exports coupled with higher prices for steel-making commodities and thermal coal should see Australia’s overall resource and energy export earnings increase 2% in the year to end-June 2018, to a record $165 B, the Department of Industry, Innovation and Science said on Friday.

Australia’s LNG exports are forecast to climb to 74 MMt in the year to end-June 2019, from 63.8 MMt forecast for this year and 52 MMt last year.

By comparison, Qatar last year exported 77.6 MMt.

The rise in Australian exports will be underpinned by higher output at the Gorgon project, run by Chevron Corp, as well as the completion of three remaining LNG projects: Chevron’s Wheatstone, Inpex Corp’s Ichthys, and Royal Dutch Shell’s Prelude.

Those three projects will add around 21 MMt to Australia’s LNG export capacity, taking total capacity to around 88 MMt.

Japan, South Korea and China are set to absorb the extra volumes, the department said in its quarterly commodities report.

“While prospects for growth in the imports of Japan and South Korea are limited, Australian producers are expected to capture an increasing share of both country’s imports,” the department said.

The department raised its iron ore price forecast for 2017 about 3% to an average $64/t, and increased its coking coal price forecast by 6 percent to $203.30/t from its June outlook.

Coking coal contract prices for the third and fourth quarters are forecast to be much lower than the first half, it said, driven by higher production in China and a return to normal in Australia after a cyclone cut output earlier this year.

Iron ore, Australia’s top export earner and dominated by miners Rio Tinto and BHP, has rebounded from a low of $47/t in mid-June, to average $65/t in the September quarter.

“The iron ore price has been boosted by strong steel margins in China, which has resulted in increased steel production and mill restocking of inputs,” the department said.

Forecast exports of iron ore were decreased slightly to 862.3 MMt in 2017–2018 and to 886.7 MMt the following year.

Reporting by James Regan; Editing by Sonali Paul

Copyright © 2018. All market data is provided by Barchart Solutions. Futures: at least a 10 minute delay. Information is provided 'as is' and solely for informational purposes, not for trading purposes or advice. To see all exchange delays and terms of use, please see disclaimer.

                                  CMEGroup                                     Icelogo


Editorial comment
-Adrienne Blume
According to GIIGNL’s 2018 Annual Report, global LNG trade expanded by 3.5 Bft3d in 2018, to 38.2 Bft3d—a record 10% increase.
Power, LNG projects drive pipeline construction in Africa
-Shem Oirere
Increasing public investment in gas-fired power plants in Africa, the continuing recovery in global oil prices and persistent insecurity in key producer markets, such as Nigeria, are likely to impact gas transmission pipeline projects on the continent, even as more international companies express interest in the region’s stranded gas resources.

Maximize Profitability with Advanced Analytics at Natural Gas Processing Plants

View On-Demand

Incorporating economic data into process modeling is key to optimizing operations and maximizing profits at gas processing plants. However, maintaining optimal operations are often challenging due to changing market dynamics, contract structures and increasing process flexibility. Today, gas processors are leveraging Predictive Control and First Principles models to accurately determine and control the optimal operating targets in real time based on the most current plant conditions and profitability, optimizing recovery of natural gas liquids. Learn how real-time analytics, combined with decision support tools, empower companies to:
•Improve processing margins by up to 5%
•Maximize NGL production through improved availability and optimized process conditions
•Improve compositional control to operate closer to product specifications

May 22, 2018 10am CDT

View On-Demand


Please read our Term and Conditions, Cookies Policy, and Privacy Policy before using the site. All material subject to strictly enforced copyright laws.
© 2018 Gulf Publishing Company.