Australian LNG exports surge in 2016

Australia’s LNG exports jumped by 37.7 per cent to 36.8 MMt over calendar 2016 as the plethora of new projects in Western Australia, the Northern Territory and coastal Queensland triggered a flood of new shipments to global markets.

Total exports were 10.1 MMt above the 26.7 MMt shipped in 2015, with the performance in 2017 expected to be even stronger.

In its just released monthly LNG report, EnergyQuest says that as APLNG and Gorgon continue to ramp up and new LNG projects come into production (Wheatstone and Ichthys), Australia’s 2017 exports will be close to 60 MMt, up by 63 per cent on 2016.

EnergyQuest estimates the total value of Australian LNG exports as $17.9 billion in 2016, an 8.6 per cent dollar increase over the previous year.

If current oil prices are maintained, EnergyQuest estimates that the value of Australian LNG exports will double to around $36 billion in 2017.

“The growth of LNG exports is a massive benefit to the Australian economy,” said EnergyQuest CEO Dr Graeme Bethune.

Plant performance

Australia’s newest LNG hub – the three new plants around Gladstone – not surprisingly saw Queensland LNG exports nearly triple to 17.5 MMt in 2016.

West coast exports were down slightly at 19.3 MMt for the period.

Most Australian LNG exports continued to go to established customers with long-term contracts during the year.

Japan remains the largest customer for Australian LNG, taking 48 per cent of 2016 cargoes.

China is now the second biggest customer, taking 30 per cent of cargoes (60 per cent of cargoes from Queensland).

Korea is an emerging buyer (53 cargoes) and 2016 saw regular Australian cargoes to India (16 cargoes).

EnergyQuest is an Australian-based energy advisory firm, which specialises in market analysis and strategy for energy companies and buyers, investors and governments.

You can read the latest copy of the monthly LNG report here.

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