Information about the EnergyQuest Australian LNG Monthly is available by clicking here.
| Year in review 2024 was an eventful year for the LNG industry, though thankfully less so than previous years which saw a series of major and unexpected government interventions. This month’s LNG report covers some of the major events in 2024 and some points to watch in the coming year. EnergyQuest also explores how using gas and LNG may result in a faster transition to net-zero carbon. The role of gas is moving from supplying large volumes of energy, to more firm energy peaking support – a trend already seen in South Australia. The reliability of gas peak energy supply has the added benefit of allowing the transition to go faster and take more risks, as it provides a backup or insurance if the renewables are for some reason not available. LNG is good fit in this balancing act as it can readily add domestic gas supply and capacity either with diverted feedstock or through regasification, in support of the transition to a zero-carbon future. Monthly statistical summary Australia’s November 2024 shipments were 80.9 Mtpa on an annualised basis, compared to 81.1 Mtpa for the 2023 calendar year, and 83.4 Mtpa for October 2024. November 2024 shipments represented 91.3% of nameplate capacity. EnergyQuest estimates that Australian LNG export revenue in November was $5.31 billion, lower than the $5.27 billion in October reflecting a 7.2% decrease compared to November 2023 when revenue was also $5.72 billion. WA projects earned export revenue of $3.07 billion, Queensland projects brought in $1.76 billion, and NT projects earned $0.48 billion. West coast (WA and NT) shipments were lower at 4.65 Mt in November, down from 4.76 Mt in October. There were 63 cargoes in November, compared to 67 in October. A year ago, the west coast shipped 69 cargoes totalling 4.73 Mt. West coast projects operated at 86.5% of nameplate capacity during November. Queensland LNG shipments came down from the record of 2.33 Mt in October to ship 2.20 Mt during November, which also compares to shipping 1.99 Mt in September. There were 32 cargoes during November compared to shipping 34 cargoes during October, and compared to 29 cargoes in September, and compared to the 29 cargoes of 1.96 Mt in November 2023. The Queensland projects operated at 102.6% of nameplate capacity during November. The surge in gas demand led to a 19.7% increase in spot market gas prices in June compared to May. However, the average spot market price in July retreated by 17.4% compared to June’s elevated prices, with the average spot market price in July 2024 at $13.20/GJ. In August, the average spot market price declined further by 6%, averaging $12.42/GJ, and declined by a further 3.9% during September to $11.94/GJ however, in October the average spot market price strengthened by 6.6% compared to September 2024 with the October average price increasing to $12.72/GJ, and in November the average spot market price for gas increased yet again to $13.56/GJ, an increase of 6.5% over the October average price of $12.72/GJ, which is above the $12/GJ government cap. |