🚀 ProPicks AI Hits +34.9% Return!Read Now

Australia's LNG exports slip behind Qatar in January on outage

Published 01/02/2019, 04:24 pm
Updated 01/02/2019, 04:30 pm
Australia's LNG exports slip behind Qatar in January on outage
CVX
-
SHEL
-
NG
-
1605
-

* Australia's Jan exports dip 6.5 percent from Dec - Eikon

* Qatar exports rise back to overtake Australia

* Chevron's Gorgon train 3 remains shut - sources

* Asian demand tepid due to mild winter - sources

By Jessica Jaganathan

SINGAPORE, Feb 1 (Reuters) - Australia's liquefied natural gas (LNG) exports fell in January due to lower production from an LNG plant and a bout of hot weather, pushing exports below rival Qatar, according to export data in Refinitiv Eikon.

Monthly exports from Australia, which overtook Qatar as the world's top LNG exporter last November, dipped 6.5 percent from December to about 6.26 million tonnes of the super chilled fuel.

Qatar, meanwhile, ramped up exports in January by about 4.3 percent from the previous month to about 6.8 million tonnes, the data showed.

Australia's exports have grown rapidly following the start-up of new projects.

However, one of three production trains at Chevron (NYSE:CVX) Corp's CVX.N Gorgon LNG project in Western Australia remains shut after it was halted in mid-January to address a mechanical issue, industry sources said on Friday. Chevron spokesman declined to comment.

The Gorgon train shutdown was the main reason for the drop in Australian LNG exports, with east coast LNG plants around Gladstone performing well, said Wood Mackenzie analyst Nicholas Browne.

"Under extremely hot temperatures the efficiency of liquefaction plants will be impacted somewhat," he added.

Australia endured its hottest month on record in January,

with the west coast facing hot, dry weather over the next three months. spot LNG prices LNG-AS have also fallen to a nine-month low on subdued demand in North Asia due to a warmer than winter season.

"With (Asian spot prices) in the $7s, there is less incentive to push the trains," an Australia-based industry source said, declining to be named as he was not authorised to speak with media.

Further out, Australia is expected to regain its position as world's largest LNG supplier by capacity as output is ramped up from new projects such as Ichthys, run by Japan's Inpex Corp 1605.T , and Royal Dutch Shell's RDSa.L Prelude, said James Taverner of energy consultancy IHS Markit.

However, export growth will depend on the availability of feedstock from east coast coal seam gas wells, he added.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.