Australian LNG Exports to China Hit Record

Australian exports of liquefied natural gas (LNG) to China hit a new record for the full year ending June 2021 despite intensifying trade tensions between the two countries.

Australia exported a record 30.7 million tonnes of LNG to China, worth an estimated A $ 15.6 billion, EnergyQuest said in its latest report released today. Deliveries from Australia increased 7.3% from the previous record of 28.6 million tonnes recorded in the full year ending June 2020, according to import statistics.

China has now overtaken Japan as Australia’s largest LNG customer, EnergyQuest said.

Australian LNG exports to China of 30.7 million tonnes (Mt) were much higher than disclosed contracts of 19.4 million tonnes, EnergyQuest reported. “The projects with Chinese contracts are NWS, Gorgon, QCLNG and APLNG. All but Gorgon have delivered above their contracts. Additionally, all other Australian LNG projects have provided cargo to Chinese buyers, even without explicit contracts with China. Additional supplies come from portfolio volumes and spot sales. For example, QCLNG has Chinese contracts of 3.6 Mtpa but supplied 6.9 Mt to China in FY 2021, with the additional volumes coming from contracts in Shell’s portfolio. GLNG does not have a contract with China but has delivered 1.1 Mt to China, most likely from the Petronas portfolio, ”the Australia-based consultancy said.

China imported a total of 76.1 Mt for the 12 months to June 2021, up from 63.6 Mt for the previous 12 months, up 19.6% year-on-year, EnergyQuest reported. Import prices fell 15% on average to US $ 6.87 / MMBtu compared to US $ 8.12 / MMBtu for the previous 12 months. Average Australian prices fell 20% to US $ 6.66 / MMBtu from US $ 8.30 / MMBtu for the previous year. The total landed value of Australian LNG imports in FY2021 was US $ 10.6 billion (AU $ 15.6 billion), compared to US $ 12.3 billion (AU $ 18.8 billion). Australian dollars) the year before, the consultancy added.

China is expected to soon become the world’s largest buyer of LNG, replacing Japan, EnergyQuest said.