Demand fuels Australian LNG production

The increasing global demand led to a 7.5% increase in LNG production from 17.4 million tonnes per annum in FY2009 to 18.7MMtpa, with exports expected to further increase over the next 12 months as Woodside’s 4.3MMtpa Pluto project comes on stream.

EnergyQuest chief executive officer Graeme Bethune said the growth in LNG production was driven by growing demand in Japan, China and Taiwan.

“Japan continues to be Australia’s biggest LNG customer, taking two-thirds of Australia’s exports in 2009-10,” he said.

“Australia supplies 18 percent of Japan’s LNG, and is moving up from being the third to the second biggest supplier, overtaking Indonesia.

“China is also becoming increasingly important, taking 20 percent of Australian exports in 2009-10.”

Although export volumes increased, the value of LNG exports declined, dropping from $10 billion to $7.8 billion, reflecting average export prices of $7.60 per gigajoule, down from $10.50/GJ in FY 2009.

Australian domestic gas production was up by 3.3% compared to the previous year, when production was affected by the Varanus Island interruption.

East coast production remained flat for the year, but coal seam gas production continued to grow, reaching a record 195 petajoules.

Production of oil and natural gas liquids (condensate and LPG) fell from 181 million barrels of oil equivalent to 176MMboe, however oil production received a boost in the June quarter due to the new Pyrenees and Van Gogh oil fields and good performances from the Vincent and Enfield oil fields.

Wednesday, 8 September 2010
PetroleumNews.net
http://www.petroleumnews.net/StoryView.asp?StoryID=1140021