LNG shipments dip, China snubs Australia for extra supplies

Shipments of LNG fell in September from near-record levels and some cargoes faced delays, but that did not stop Australian oil and gas producers from cashing in on buoyant international gas and oil prices.

But in the midst of the energy crisis, EnergyQuest’s September report shows that Australian east coast gas prices have been insulated from the international gas price turbulence, which pushed LNG spot prices to a record of more than $US56 per million British thermal units earlier this month on the back of robust demand and a squeeze on supplies that has roiled energy markets in Britain, Europe and parts of Asia.

EnergyQuest’s report shows almost 20 per cent of shipments faced delays, with five east coast cargoes and 14 west coast cargoes delayed for three days or more, redirected to different destinations or awaiting orders.

But EnergyQuest’s monthly report shows east coast gas prices have been isolated from the record international LNG prices.

east coast gas prices fell in September, averaging $8.28/GJ (gigajoule) ($8.68 in August) at Wallumbilla and $8.36/GJ ($8.54/GJ) in Brisbane,” the report states.