With contract LNG prices, based on lagged oil prices, continuing to rise, the average Australian LNG export price in April was $8.26/GJ.
However, the report points out that oil prices are falling again and will likely have negative implications for domestic gas prices.
Production
Australian LNG shipments in May jumped to 4.8 MMt (71 cargoes), up from 4.0 MMt (60 cargoes) in April.
The increase in LNG shipments in May was due to higher production from APLNG and Gorgon and the restart of NWS production after an outage in April.
APLNG shipments increased due to the 90-day Operational Test but overall east coast shipments have been reasonably flat this year (Figure 1).
In its just released Energy Supply Outlook for the east coast, AEMO has gas -use for the Queensland LNG projects falling since March.
This is contrary to both the EnergyQuest shipments data and the shipment data from the Gladstone Ports Corporation.
AEMO data on LNG pipeline flows for the same period also shows higher flows in May than in March, not lower.
Australian LNG projects performed strongly in May.
Established west coast projects (NWS, Pluto and Darwin) all produced at above contract levels and the NWS exceeded nameplate capacity.
Despite problems with Train 1 Gorgon produced more than two-train capacity.
Shipments from APLNG exceeded nameplate capacity as the plant underwent its Operational Test, suggesting APLNG will have future capacity for spot cargoes.
Shipments from GLNG were lower than in April but there were also GLNG shipments from APLNG.
West coast projects shipped 2.8 Mt (up from 2.2 Mt in April) and Queensland projects shipped 1.7 Mt, up from 1.6 Mt in April.
Wheatstone is due to start production in August.