Oz export revenue hits monthly high

Australia is believed to have achieved record high monthly export revenue from liquefied natural gas, according to consultancy EnergyQuest.

In its monthly report, EnergyQuest estimated LNG export revenue reached A$3.1 billion (US$2.4 billion) in March, which it attributed to higher oil prices.

It also came as Australian LNG shipments rose from 5.1 million tonnes in February to 5.4 million tonnes in March, with a rise in cargoes leaving Australia’s west coast, to 3.8 million tonnes, offsetting a slight dip in exports from Queensland’s LNG projects, to 1.6 million tonnes.

EnergyQuest also revealed in Thursday’s report that the Woodside Petroleum operated North West Shelf and Pluto LNG plants both operated above nameplate capacity in March.

It estimated output from North West Shelf during the month, on an annualised basis, averaged 17.8 million tonnes per annum, above its nameplate capacity of 16.9 million tpa.

At Pluto, output is believed to have averaged 5.3 million tpa, on an annualised rate, above its 4.9 million tpa nameplate capacity.

The only other project to operating at nameplate capacity was ConocoPhillips’ 3.7 million tpa Darwin LNG project in the Northern Territory.

The remainder of Australia’s LNG projects are believed to have operated during the month at below nameplate capacity.

EnergyQuest also questioned in its report if Australia would take the mantle from Qatar as the world’s largest exporter of LNG.

The Australian government believes the nation's exports will reach Qatar’s level of 77 million tpa in the 2020-21 financial year and rise to 78 million tpa the following year.

Wood Mackenzie analyst Saul Kavonic is slightly more optimistic, telling the Sydney Morning Herald last month he believed Australia could take the crown as early as the end of this year as projects continue to ramp up and the Inpex-operated Ichthys LNG development and Shell’s Prelude floating LNG development prepare to come online.

EnergyQuest however warned that Australia overtaking Qatar would depend on the ramp-up rate of Chevron’s Wheatstone LNG development, the start-up of Ichthys and Prelude, as well as the start of decline from the North West Shelf.

EnergyQuest expects production from the North West Shelf to start to decline from next year and, if that was to happen, it believes Australia will get close to 77 million tpa in exports in 2020 but fail to overtake Qatar.