Oz LNG Exports in March Up: EnergyQuest

Australian LNG exports in March were 6.8mn metric tons (101 cargoes), significantly higher than 6.1mn mt (90 cargoes) in February, and more than the 6.2mn mt (92 cargoes) in March 2019, energy consultancy EnergyQuest said in its monthly report published April 16.

“Australian LNG projects can continue to operate at current low oil prices. They will not thrive but they will survive,” EnergyQuest said.

EnergyQuest expects Australian LNG export revenue in 2020-2021 (July-June) to drop to A$30bn (US$19bn) from the expected A$50bn revenue in 2019-2020 as lower oil prices feed through into realised LNG prices.

“Lower oil prices will take time to feed through into realised LNG prices. The Japan Customs Cleared (JCC) oil import price was still US$70.60/b in February and the drop in spot prices in March will not feed through into LNG realisations until May or June,” EnergyQuest said.

The Brent oil price fell from US$51.31/barrel at the end of February to US$22.24/b a month later. It has since rallied following agreement among Opec+ members to initial cuts of 9.7mn b/d starting on May 1. As of press time, front month Brent crude oil was trading at $28.60/b, continuing its downward trend since the Opec+ meeting on the back of oversupply.