May 28

Woodside gets OK for NWS extension project and an update to the Austrailan LNG export market

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Australian LNG Exports: Companies, Volumes, and Destinations

Australia stands as a global powerhouse in liquefied natural gas (LNG) exports, vying with Qatar and the United States for the top spot. In 2022, the country exported a record 81.4 million tonnes (Mt) of LNG, generating an estimated A$92.8 billion in revenue, a staggering 86% increase from 2021 due to higher global prices. However, 2023 saw a slight dip to 80.7 Mt, marking the first decline since 2015. Despite this, Australia remains a critical energy supplier, particularly to Asia, supporting energy security and economic growth in the region. This article explores the key companies driving Australia’s LNG industry, their export volumes, and the primary destinations for these shipments, based on the latest available data.

Key LNG Export Companies and Projects

Australia’s LNG industry is concentrated in three major hubs: Western Australia, Queensland, and the Northern Territory. Western Australia dominates, contributing 60% of national exports in 2022, followed by Queensland at 29% and the Northern Territory at 11%. Below are the leading companies and their flagship projects:
  1. Chevron Australia
    • Gorgon Project (Western Australia): Operated by Chevron, Gorgon is Australia’s largest LNG project, producing 16.8 Mt in 2022, a 20% increase from 2021. Located on Barrow Island, it has a capacity of 15.6 Mt per year (Mtpa) across three trains.
    • Wheatstone Project (Western Australia): Also Chevron-operated, Wheatstone produced significant volumes, contributing to Western Australia’s dominance. Its capacity is 8.9 Mtpa across two trains.
  2. Woodside Energy Group
    • North West Shelf (NWS) Project (Western Australia): Operated by Woodside, NWS is one of Australia’s oldest LNG projects, operational since 1989. It produced 1.6 Mt more in 2022 than in 2021, with a capacity of 16.3 Mtpa across five trains. Despite aging gas fields, it remains a cornerstone of Australia’s LNG exports.
    • Pluto LNG (Western Australia): Woodside’s Pluto project, with a single train of 4.3 Mtpa, continues to contribute to export volumes. The upcoming Scarborough project, expected online by 2026, will further bolster Woodside’s output.
  3. INPEX
    • Ichthys LNG (Northern Territory): Operated by Japan’s INPEX, Ichthys saw a 900% production surge in 2019 during its ramp-up phase and contributed 7.529 Mt in 2019 alone. With a capacity of 8.9 Mtpa, it plays a vital role in the Northern Territory’s 11% share of national exports in 2022.
  4. Shell
    • Prelude FLNG (Western Australia): Shell operates the world’s first floating LNG facility, Prelude, with a capacity of 3.6 Mtpa. Fully operational since 2020, it added 1.9 Mt from its loading port in 2023.
    • Queensland Curtis LNG (QCLNG) (Queensland): Operated by Shell’s QGC Pty Ltd, QCLNG has two trains with a combined capacity of 8.5 Mtpa. It is a key contributor to Queensland’s coal-seam gas-based LNG exports.
  5. Santos
    • Darwin LNG (Northern Territory): Santos operates this single-train facility with a capacity of 3.7 Mtpa. It shipped 1.3 Mt in 2022 but faces a hiatus until the Barossa field comes online in 2025.
    • Gladstone LNG (GLNG) (Queensland): Santos-led GLNG, with two trains and a capacity of 7.8 Mtpa, supports Queensland’s export volumes.
  6. Origin Energy and ConocoPhillips
    • Australia Pacific LNG (APLNG) (Queensland): Operated by ConocoPhillips and co-owned by Origin Energy, APLNG has two trains with a combined capacity of 9 Mtpa. Queensland’s three Curtis Island projects (QCLNG, GLNG, and APLNG) collectively produced 23.3 Mt in 2022, down 4% from 2021.
Other notable players include BHP Group, a major natural gas producer with a market capitalization of A$216 billion as of September 2024, though it does not operate LNG facilities directly. These companies collectively operate Australia’s 10 LNG projects, with a total capacity of 88.6 Mtpa, running at 92% capacity in 2022.

Export Volumes: A Snapshot

Australia’s LNG export volumes have grown dramatically over the past decade, from 23 Mt in 2013-14 to an expected 79.7 Mt in 2023-24. Key milestones include:
  • 2019: Australia became the world’s largest LNG exporter, shipping 77.5 Mt, surpassing Qatar’s 75 Mt.
  • 2022: A record 81.4 Mt was exported, with Western Australia contributing 49 Mt, Queensland 23.3 Mt, and the Northern Territory 9.2 Mt.
  • 2023: Exports fell to 80.7 Mt, reflecting aging fields and supply constraints. The first eight months of 2023 saw 53.9 Mt shipped, a 1.3% increase year-on-year, placing Australia behind the U.S. (57.4 Mt) but ahead of Qatar (53.1 Mt).
  • 2024: Fiscal year 2024 (July 2023–June 2024) recorded 175.9 million megaliters (approximately 79.7 Mt) exported, with a value of A$68.8 billion, down from A$92.8 billion in 2022 due to softer prices.
Top loading ports in 2023 included Gladstone (15.6 Mt), Dampier (13.0 Mt), Barrow Island (10.8 Mt), Ashburton (6.8 Mt), Darwin (5.9 Mt), and Prelude FLNG (1.9 Mt).

Export Destinations: Asia’s Dominance

Australia’s LNG exports are overwhelmingly destined for Asia, with nearly 90% of volumes in 2022-23 shipped to four key markets: Japan, China, South Korea, and Taiwan. The breakdown for 2022 and early 2023 highlights Asia’s reliance on Australian LNG:
  • Japan (36% in 2022-23, 34% in Jan-Aug 2023): Japan reclaimed the top spot in 2022, importing 31.2 Mt (39% of Australia’s exports), up 14.1% from 2021. In the first eight months of 2023, Japan took 18.3 Mt, a 14.1% decline from 2022 but still accounting for 34% of shipments. Japan relies on Australia for 43% of its LNG imports, critical for electricity and heating in cities like Tokyo.
  • China (28% in 2022-23, 30% in Jan-Aug 2023): China imported 22.6 Mt in 2022, down 28.5% from 2021 due to economic slowdowns. In Jan-Aug 2023, exports to China rose 15.6% to 16.2 Mt, comprising 30% of Australia’s LNG. China’s industrial demand and shift from coal to gas drive its 35% reliance on Australian LNG.
  • South Korea (14% in 2022-23, 31.1% in 2023): South Korea imported 7.0 Mt in Jan-Aug 2023, down 6.9% year-on-year, but remained a key market, accounting for 25% of its LNG imports from Australia.
  • Taiwan (11% in 2022-23): Taiwan, heavily dependent on imports, relies on Australia for 37% of its LNG, supporting energy security.
  • Southeast Asia (11.5% in Jan-Aug 2023): Emerging markets like Thailand (2.5 Mt), Singapore (1.9 Mt), and Malaysia (1.5 Mt) saw a 28.5% increase in Australian LNG imports in Jan-Aug 2023, reflecting growing demand as these nations transition from coal.
Small volumes occasionally reach Europe, particularly uncontracted gas sold on the spot market, as the continent diversifies away from Russian supplies. However, Asia’s proximity and long-term contracts make it the premium market. Australia’s Department of Industry identifies India, Indonesia, Bangladesh, Thailand, Malaysia, Vietnam, and the Philippines as emerging markets through 2050.

Challenges and Future Outlook

Australia’s LNG industry faces headwinds despite its success. Aging gas fields, depleting reserves (e.g., Bayu-Undan for Darwin LNG), and a lack of new projects threaten future volumes. Exports are projected to decline to 79 Mt in fiscal year 2024-25, with a long-term drop expected by 2050 as contracts expire and global competitors like Qatar and the U.S. expand capacity. Qatar’s lower production costs and the U.S.’s 92.9 Mtpa export capacity as of September 2024 pose stiff competition.
Domestically, the industry grapples with balancing export commitments and local demand. Eastern Australia faces gas shortages, with prices tripling since Queensland’s LNG exports began in 2015, hurting manufacturers. Proposals for price caps or guaranteed domestic volumes could curb exports, risking tensions with trade partners like Japan and South Korea. Environmental concerns also loom, as LNG production contributes significant greenhouse gas emissions, prompting 40% of Australian institutional investors to exclude new oil and gas projects.
On the horizon, projects like Woodside’s Scarborough (2026) and Santos’ Barossa (2025) offer some growth potential, but no major capacity expansions are planned. To maintain its edge, Australia must diversify export markets, invest in exploration, and explore low-emission alternatives like hydrogen, aligning with Asia’s net-zero goals.

Conclusion

Australia’s LNG export industry, led by giants like Chevron, Woodside, INPEX, Shell, and Santos, remains a cornerstone of the nation’s economy and Asia’s energy security. With 80.7 Mt exported in 2023, primarily to Japan, China, South Korea, and Taiwan, the sector continues to thrive despite a slight decline from its 2022 peak. However, looming challenges—aging fields, global competition, and domestic pressures—signal a need for strategic adaptation. As Asia’s demand evolves and the global market shifts toward cleaner energy, Australia’s LNG industry must navigate a complex path to sustain its global leadership.
Sources: EnergyQuest, Australian Department of Industry, Science and Resources, Statista, S&P Global, Hellenic Shipping News, IEEFA, GIS Reports

 


Update from LNG Prime on Woodside gets OK for NWS extension project

The Australian government has been considering a proposal to extend the operating life of the NWS gas plant in Karratha, Western Australia, beyond the expiry of its current approval in 2030, until 2070.

“Following the consideration of rigorous scientific and other advice including submissions from a wide cross-section of the community, I have today made a proposed decision to approve this development, subject to strict conditions, particularly relating to the impact of air emissions levels from the operation of an expanded onshore Karratha gas plant,” Environment Minister Murray Watt said in a statement.

“I have provided the proponent with an opportunity to comment within the statutory timeframe of 10 business days, and I will consider the proponent’s comments before a final decision is made,” he said.

In December 2024, Woodside and its partners received environmental approval from the Western Australian government.

Woodside welcomed the federal government’s proposed decision to grant environmental approval for the NWS project extension in a separate statement on Wednesday.

The company also noted that it has received the proposed conditions, which relate to matters including cultural heritage management and air quality, and is reviewing them to understand their application.

Woodside executive VP and COO Australia Liz Westcott said the proposed approval will provide “certainty for the ongoing operation of the North West Shelf project following rigorous assessments and appeals.”

“This nationally significant infrastructure has supplied reliable and affordable energy to Western Australia for 40 years and international customers for 35 years and will be able to continue its contribution to energy security,” Westcott said.

In August last year, Woodside said it was preparing to shut one of the five trains at its North West Shelf LNG terminal due to declining natural gas supplies.

The plant has five LNG trains, launched between 1989 and 2008, with a capacity of 16.9 million tonnes per year. Most of these volumes supply customers in Japan.

In September 2022, the Woodside-operated Karratha gas plant, part of the North West Shelf project, shipped its 6000th cargo of LNG.

The facility also has domestic gas trains, condensate stabilization units, and LPG units.

Australia’s oldest LNG plant has been liquefying gas from fields located off the north-west coast of Australia since 1989.

However, these fields are slowly running out of gas and the project is now shifting its focus towards a different business model aimed at processing gas from third parties.

Back in 2022, Woodside started sending gas from its Pluto offshore field to the LNG plant at Karratha.

This accelerated production of Pluto gas followed the start-up of the Pluto-KGP interconnector.

Woodside operates both the NWS and Pluto LNG facilities. Its partners in NWS include BP, Chevron, Japan Australia LNG, and Shell.

In December 2024, Chevron and Woodside agreed to an asset swap under which Woodside will exit the Wheatstone LNG project and Chevron will sell its stake in the NWS project.

Source: Lngprime.com

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