China becomes Australia’s biggest LNG customer
China has officially become Australia’s largest gas customer, overtaking Japan. The country imported a total of 32 million tonnes of LNG in 2021 which is a 7.1% increase on the year before.
This figure represents approximately one-third of the country’s total LNG export capacity of 80 million tonnes shipped in 2021.
“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,” EQ said.
Shell’s Prelude was the only Australian project to not deliver cargo to China last year. The largest suppliers were east coast companies ConocoPhillips, Origin’s Asia Pacific LNG project and Shell’s QCLNG project.
EQ also stated that LNG deliveries to Korea and Taiwan grew, however deliveries to Japan were 9.3% down in 2020 because of the expiration of Japanese contracts within Woodside and Santos projects.
Multiple Resources and Energy Quarterlies have previously flagged China becoming our largest LNG customer, highlighting China’s surge in demand as Japan’s demand adjusts as it looks to meet decarbonisation targets by 2030.
EQ has previously claimed that China is in the process of seeking to diversify its LNG supply as it signs new contracts with Qatar and the United States, unfortunately leaving Australia largely missing out.
2021 is seen to likely be the peak of Australia’s LNG production, due to increasing competition as well as natural decline of the countries gas fields and limited new project developments.