Oz East Coast LNG Exports to China Continue to Drop

LNG exports from projects located on the Australian east coast to China were sharply down for the second straight month in March owing to the outbreak of coronavirus (Covid-19), according to data published by Gladstone Ports Corporation on April 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 1.09mn metric tons of LNG to China in March, down 16.8% yr/yr, the data showed. In February, exports to China were down 15% yr/yr. 

The Chinese demand has taken a hit because of the Covid-19 outbreak. China – the world's biggest LNG importer – has been calling forces majeures on some of its purchase contracts, in response to weak demand.

Overall east coast LNG exports have seen a drop as well. The three projects exported a total of 1.82mn mt of LNG in March as against 1.93mn mt in the same month of last year, the data showed. In addition to China, other major importers last month were Malaysia, South Korea and Japan. 

Malaysia imported 186,694 mt as against 185,500 mt in the same month last year. South Korea imported 414,875 mt of LNG, up from 226,016 mt in the same month of last year, the data showed. Japan imported 127,228 mt of LNG versus 139,168 mt a year earlier.