LIQUEFIED NATURAL GAS – PRICES

LNG exports, prices surge to record levels as iron slumps

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Original article by Perry Williams, David Rogers
The Australian – Page: 13 & 16 : 7-Sep-21

The price of iron ore has fallen by more than 40 per cent since reaching a record high of $US233 per tonne in May. Federal Resources Minister Keith Pitt says strong growth in the price of both LNG and coal is helping to offset the slump in the price of iron ore. The LNG price in Asia has risen to nearly $US20 a gigajoule, while the price of Newcastle coal recently reached a record high of $US173 a tonne. Queensland’s LNG export projects have ramped up shipments in response to the surge in prices.

CORPORATES
AUSTRALIA. DEPT OF INDUSTRY, SCIENCE, ENERGY AND RESOURCES

Gas supply glut deflates prices for exporters

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Original article by Perry Williams
The Australian – Page: 24 : 15-Mar-19

Bernstein analyst Neil Beveridge an increase in global LNG supply in 2019 will put downward pressure on spot prices, which will in turn impact on Australia’s LNG exporters. It is estimated that up to 58 million tonnes of additional LNG production may be approved during 2019, while a final investment decision regarding another 64 million tonnes of supply is slated for 2020.

CORPORATES
BERNSTEIN INVESTMENT RESEARCH AND MANAGEMENT, WOODSIDE PETROLEUM LIMITED – ASX WPL, OIL SEARCH LIMITED – ASX OSH, TOTAL SA, EXXONMOBIL CORPORATION

India-Exxon deal to cut gas price bodes ill

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Original article by Paul Garvey
The Australian – Page: 20 : 12-Sep-17

The global oversupply of LNG has prompted India-based Petronet to renegotiate its 20-year Gorgon LNG supply contract with ExxonMobil. Petronet is believed to have secured a deal to reduce the price it pays by $US1.10 to $US1.30 per unit. Industry analysts say other Gorgon buyers may also seek to renegotiate their supply contracts, as part of a global trend for LNG buyers to do so. Saul Kavonic of Wood Mackenzie analyst says the biggest risk for Australian LNG producers will be if major Asian buyers such as Japan and China seek to renegotiate supply contracts.

CORPORATES
EXXONMOBIL CORPORATION, PETRONET INDIA LIMITED, GORGON JOINT VENTURE, WOOD MACKENZIE, WOODSIDE PETROLEUM LIMITED – ASX WPL, OIL SEARCH LIMITED – ASX OSH, SANTOS LIMITED – ASX STO, ORIGIN ENERGY LIMITED – ASX ORG, RBC CAPITAL MARKETS

Gas crunch bites with price hikes

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 1 : 6-Jan-17

Manufacturers have raised concerns about imminent shortages in gas supply and their impact on prices. Mark Chellew, chairman of Manufacturing Australia, says a period of between mid-2017 and late 2018 will be particularly difficult. According to EnergyQuest, a supply shortfall will reach 172 petajoules in 2020 and 205 petajoules in 2025.

CORPORATES
MANUFACTURING AUSTRALIA LIMITED, ENERGYQUEST PTY LTD, AUSTRALIAN ENERGY MARKET OPERATOR LIMITED, VICTORIA WOOL PROCESSORS, ENERGYAUSTRALIA PTY LTD, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION

LNG price pain is still to come

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 17 : 17-Jun-16

Oversupply in the LNG Asian market could force some of Australia’s LNG producers to reduce capacity. Fereidun Fesharaki, chairman of consultancy FGE, says prices will be under pressure. The price of LNG in north Asia has declined to about $US4.50 per million British thermal units from about $US20 in early 2014, and further declines are likely.

CORPORATES
ORIGIN ENERGY LIMITED – ASX ORG, FGE

Spot pricing threatens LNG supply glut

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Original article by Paul Garvey, Matt Chambers
The Australian – Page: 19 & 22 : 13-Apr-16

Woodside Petroleum CEO Peter Coleman has expressed concern that any move to adopt spot pricing for LNG could result in an oversupply and subsequent downward pressure on prices. He noted that this was the outcome when other commodities shifted to a spot pricing system. Royal Dutch Shell CEO Ben van Beurden expects long-term contracts to continue to be the primary mechanism for setting LNG prices, but he has suggested that these contracts could eventually be linked to the Henry Hub spot gas price rather than the crude oil price.

CORPORATES
WOODSIDE PETROLEUM LIMITED – ASX WPL, ROYAL DUTCH SHELL PLC, CHEVRON CORPORATION