EnergyQuest: LNG still on track

LNG shipments from Australia in April totalled 6.9 million t through 101 cargoes, up from 6.7 million t over 98 cargoes in April 2019.

China was the destination for 40 of those cargoes, up from 29 in March, while deliveries to Japan fell from 46 in March down to 36 in April.

Australia was also the largest supplier to Korea in April, delivering 10 LNG cargoes.

In its report, EnergyQuest said it “seemed unlikely” lower oil and LNG prices would cause trains to be shut-in or output significantly cut from Australian projects.

“Most Australian LNG is sold under long-term oil-linked contracts and oil prices would need to remain very low for a considerable period for there to be shut-ins,” the report said.

“Indications are that west coast LNG projects are cash flow positive at oil prices above about US$15/bbl ($23.26) and east coast projects above US$25/bbl ($38.77).

Woodside has said it has no plans to cut LNG production and LNG shipments are typically based on 12-month schedules.”

EnergyQuest said there was unlikely to be as many spot cargoes at current prices, with April producing no such cargoes from the North West Shelf or Gorgon Projects.

Australia’s April shipments were 84.2 million t per year on an annualised basis.

For more information visit the EnergyQuest website.

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