Oz East Coast LNG Exports in May Down 2%

LNG exports from projects located on the Australian east coast stood at 1.71mn metric tons (mt), down 1.72% yr/yr, according to data published by Gladstone Ports Corporation on June 6.

The three LNG export projects – ConocoPhillips-Origin Energy Australia Pacific LNG (APLNG), Shell’s Queensland Curtis LNG, and the Santos-led Gladstone LNG – in the state of Queensland shipped 1.17mn metric tons of LNG to China last month compared with 1.38mn mt in the same period of last year.

Malaysia imported 246,533 mt as against 186,865 mt in the same month last year. South Korea imported 226,761 mt of LNG, up from 158,915 mt in the same month of last year, the data showed. Japan imported 65,768 mt of LNG versus 70,737 mt a year earlier.

Meanwhile, the Queensland government has announced a new approach to calculating royalties on oil and gas production. The upstream industry group Australian Petroleum Production & Exploration Association (Appea) said this will help provide certainty that should help ongoing investment in the state.

Appea CEO Andrew McConville said clarity on the government’s policy position was important as industry considered its next round of investment in developing the state’s substantial natural gas resources. Importantly the government has committed to lock in royalty rates for five years, he said.

“The decision helps to provide a level of certainty to the industry which stands ready to contribute strongly to Queensland’s recovery from the sharp economic downturn wrought by the Covid-19 pandemic,” McConville said. “Now is not the time for continued confusion or ongoing debate about the economic framework for investing in Queensland.”

“Predictable regulation is the foundation for investment in the new gas supplies which are urgently needed in the east coast gas market. Today’s announcement providing clarity on the royalty regime moving forward is a step towards helping the development of future gas supplies.”