Australia trims fiscal 2016-17 LNG export forecast to 51.5m mtStaff Writer | October 8, 2016
Australia's LNG export volume is expected to surge 40% year on year to 51.5 million mt in fiscal 2016-17 (July-June) as additional export capacity comes online.
Down Under The forecast has been revised down 2 million mt
"An additional 15 million mt of LNG export capacity is expected to be completed by mid-2017, bringing total operational capacity to around 66 million mt," the department said in its latest Resources and Energy Quarterly. The additional capacity includes second and third trains at the Gorgon project in Western Australia and a second train at the Australia Pacific LNG project in Queensland.
The forecast is 2 million mt lower than the 53.5 million mt the department gave in its June report, and reflects a more conservative view of the ramp up of LNG exports from several projects in the country.
"Statements from Santos executives in August indicate that GLNG may operate both trains below capacity for some time, with company releases noting that the low price environment is restricting capital expenditure and that the cost of third party gas has risen," the department said.
An increase in exports to Japan, South Korea and China was expected to drive the rise in Australia's export volumes.
"While prospects for total import growth in Japan and South Korea are subdued, Australian producers are expected to capture an increasing share of both country's imports with the commencement of a number of long-term contracts over the outlook period," the department said in the report.
The unit value for Australia's LNG exports in fiscal 2016-17 is forecast to be in line with fiscal 2015-16 at $6.70/MMbtu, and down from $11.30/MMbtu the year before, it said. ■