Australia reclaims top LNG ranking but position under threat
Australia successfully reclaimed the top spot for the world’s top LNG producer last year, however its ranking remains under threat rivals Qatar and the United States.
The country’s exports reached a new record of 80.9 million tonnes, an increase of 3.7 per cent from last year.
EnergyQuest, Adelaide-based consultants, estimate LNG export revenue reached $48 billion in 2021, which would be an increase of approximately 25 per cent from 2020.
“The massive increase in export revenue takes Australia back to the record level achieved in 2019 prior to the pandemic,” EnergyQuest chief executive Graeme Bethune noted.
Australia has the world’s largest total production capacity of 89 Mtpa, while Qatar has total capacity of 77 Mtpa but has plans to expand to 110 Mtpa by 2026.
While new LNG expansion within the Unites States is likely to lead to them over taking Australia for top spot in 2022.
The only projects that produced lower numbers in 2021 than 2020 were North West Shelf operated by Woodside and Inpex’s Ichthys project.
Notably share prices of global LNG players in 2021 appear to have fears much better. While share prices of Shell and Chevron were up over 30 per cent last year.
“Investment in traditional energy is far from dead globally, but it appears to be in the Australian share market,” Dr Graeme Bethune, EnergyQuest chief executive.
EnergyQuest estimates China to replace Japan as the country’s largest LNG market in 2021 with an estimated delivery of 32 Mt.
“Growing LNG sales to China reflect the rapid growth in Chinese natural gas demand as the economy has recovered from the pandemic and also the push to reduce air pollution in major cities,” Dr Bethune said.