LNG exports to reach $A24.4b in 2015-16

An aerial view of the APLNG Project on Curtis Island.

An aerial view of the APLNG Project on Curtis Island.

LNG export earnings are forecast to reach $A24.4 billion for the 2015–16 financial year, as LNG projects come online.

According to the Federal Government’s Resources and Energy Quarterly – June 2015, although overall resources and energy commodity export earnings have declined by 11 per cent in 2014–15 to $A174 billion, LNG exports will underpin a rise to around $A178 billion for 2015–16.

LNG plants will remain the predominant source of gas production growth in Australia for the period, driving a 30 per cent rise in output to 62 MMt.

“We are witnessing an historic milestone for natural gas delivery as higher energy export earnings reflect the move of Australian LNG projects from construction to operation,” APPEA Chief Executive Malcolm Roberts said.

“Further projects due for completion in Queensland and Western Australia over the next year will continue to underpin further growth and deliver significant royalty revenue for public services.”

Oil prices are expected to level out for the remainder of 2015 and into 2016 on the back of relatively flat figures, resulting in slight falls to contracted LNG prices in the June quarter.

Additionally, CSG well remap-up and management in support of new LNG plants will be a key determinant of short-term Eastern Australian spot gas prices.

Major start-ups for 2015

Adding to the strong outlook for domestic quarter to quarter growth throughout 2015–16 are the three projects due to enter commissioning in the coming months –  the GLNG Project, currently around 95 per cent complete, Australia Pacific LNG (APLNG) Project, now 91 per cent complete, and Gorgon Project,
around 90 per cent complete.

The $A23 billion Santos GLNG Project is a joint venture between Santos (30 per cent) and PETRONAS (27.5 per cent), Total (27.5 per cent) and KOGAS (15 per cent).

Origin and ConocoPhillips each hold a 37.5 per cent interest in the APLNG Project, with Sinopec holding the remaining 25 per cent.

Joint venture interests in the Gorgon Project include Chevron (operator, 47 per cent), ExxonMobil (25 per cent), Shell (25 per cent), Osaka Gas (1.25 per cent), Tokyo Gas (1 per cent), and Chubu Electric Power (0.417 per cent).

For more information on the Resources and Energy Quarterly – June 2015, click here.

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