“Domestic spot prices remain well below international spot prices, which are around $ 40 / GJ, but high international spot prices certainly encourage strong exports from Gladstone, including high-priced spot loads,” said the Adelaide-based company.
Australia’s LNG exports hit a quarterly record of 21.1 million tonnes during the July-September period, EnergyQuest said, noting that the strong performance lasted into October when a record 7.23 million tonnes was shipped in 105 loads . Deliveries in October were 85.1 million tons on an annual basis, surpassing the record rate of 84.8 million tons in March 2021.
Queensland’s LNG industry increased its shipments to 5.9 million tonnes in the September quarter, and EnergyQuest said the quarterly record for shipments to the east coast of 6.2 million tonnes set in the December quarter of last year is still in progress could collapse before the end of the year. The fourth quarter started off strong for the three Gladstone-based exporters. 2.12 million tons were shipped in October, with the plants accounting for an average of 96 percent of total installed production capacity.
The high export rate from Queensland and rising prices have heightened concerns among east coast gas buyers that domestic prices will follow overseas prices even higher, making the fuel unaffordable for some manufacturers.
After disappointment that recent policy decisions did little to improve the immediate affordability of gas on the east coast, industrial buyers were frustrated again last week when gas producers adopted a long overdue voluntary code of conduct that did not include the price guarantees they were looking for.
The Code “will not address key concerns of gas consumers regarding price-related loss of competitiveness that threatens the future of many facilities and related jobs and investments,” said the buyers, represented by Ai Group, Chemistry Australia , the Australian Energy Users Association and Manufacturing Australia.
Andrew McConville, Head of Australian Oil Production & The Exploration Association, which led the development of the code by the gas exploration industry, said the “vast majority” of customer inquiries were considered. He said the industry had worked within the federal government’s parameters for the code, “which included that the code should not regulate prices or contain anti-competitive provisions.”