Australian exports of liquefied natural gas (LNG) have held up despite the effects COVID-19 spread had on economic activity.
According to a report by energy consultancy EnergyQuest, Australian LNG projects shipped a total of 6.9 million tones in April. The volumes were delivered onboard 101 cargoes.
LNG exports to China kept up the pace with a total of 40 cargoes shipped. This compares to 29 cargoes delivered to China in March 2020 and 39 cargoes delivered to China in April 2019.
EnergyQuest noted that unlike in the United States, it seems unlikely that any trains will be shut or that any major output cuts from Australian projects will take place due to lower oil and LNG prices.
But, the current prices are having an effect on spot cargoes as these are likely to be cut.
Additionally, the low prices have slowed sanction of Woodside’s Scarborough LNG project and Santos’s Barossa backfill for Darwin LNG.
According to the latest ABS estimates, LNG export revenue was up by 8.0 per cent in March compared with a year earlier.
The Gladstone LNG producers had a production deficit in April. Total production from LNG producers was 2.2 PJ less than the total LNG exports.
Production from Moomba and offshore Victoria was up by 1.9 PJ compared with March. Production remained steady compared to a year ago. Overall COVID-19 restrictions do not appear to have affected domestic gas demand.