Building liquidity and transparency in the Australian east coast gas and global LNG markets
Fiona PoynterArgus Media.
The APPEA Journal 55(2) 419-419 https://doi.org/10.1071/AJ14054
Published: 2015
Abstract
The Australian natural gas market is undergoing a dramatic change. Queensland will start LNG production and exports at the end of this year, and this is already having an effect on the east coast’s domestic gas market.
LNG ramp-up gas supplies are now exerting downwards pressure on forward prices in Queensland and to some extent in other east Australian states. LNG plant operators are ramping-up well drilling and production to ensure the smooth processing of gas feedstock for liquefaction.
But the availability of this gas for the domestic market will start to fall when the first LNG plant comes on line at the end of 2014. The Argus Wallumbilla index (AWX), for month-ahead gas delivery in southeast Queensland, usefully illustrates the changing dynamics of the Australian east coast gas market and provides the industry a transparent reference point on which to base a transaction.
This extended abstract provides expert insights into the interplay between the Australian LNG export and east coast domestic gas markets, as well as the pricing implications and outlook for the global LNG markets. It also aims to answer the following questions:
How will liquidity develop in the Australian east coast domestic spot gas market?
How will the east coast LNG spot supply picture evolve?
What are the key drivers in the global LNG spot markets?
How will Henry Hub pricing impact Australian LNG pricing?
Fiona Poynter joined Argus in 2006, having begun her career in the energy industry at Eni UK. Fiona is responsible for generation fuels business development across Asia-Pacific, with a particular focus on LNG. Fiona joined the Argus team in Sydney in 2012, having previously worked in the firm’s London headquarters as editor of Argus LNG Daily and Argus European Emissions. She also spent a number of years working on the European natural gas desk. During her time at Eni, Fiona was responsible for gas sales to the company’s UK-based industrial and commercial customers. |
References
Corbeau, A., Braaksma, A., Hussin, F., Yagoto, Y., and Yamamoto, T., 2014—The Asian Quest for LNG in a Globalising Market. IEA Partner Country Series. Paris: The International Energy Agency.International Group of Liquified Natural Gas Importers (GIIGNL), 2013—The LNG Industry in 2013. Paris: GIIGNL.
Ledesma, D., Henderson, J., and Palmer, N., 2014—The Future of Australian LNG Exports: Will Domestic Challenges Limit the Development of Future LNG Export Capacity? OEIS Paper, NG-90. London: The Oxford Institute for Energy Studies.
