Then there were Five

abarrelfullabarrelfull wrote on 29 Sep 2015 07:52
Tags: australia lng

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Just 5 years ago, Australia only had two operating LNG producing plants, the relatively small single train Darwin LNG Terminal and the original North West Shelf LNG plants, which are much larger and consists of five trains.

In 2012, these were joined by the Pluto LNG Terminal, and Australia started to become a more significant player in LNG globally.

2015 however, will forever be the turning point for LNG in Australia. First the Queensland Curtis LNG Terminal reached full commercial production and now we have this announcement that Gladstone LNG Terminal is up and running. So we now have about 35 million tpa capacity and 5 operating facilities.

This is before the great silver backed gorilla of a project, Gorgon LNG Terminal, will add another 15 million tpa capacity. That's not all, Australia Pacific LNG is to add 9 million tpa this year and next, whilst the Wheatstone LNG Terminal will add another 9 million tpa next year.

A year from now, total Australian capacity will be almost 70 million tons per annum, a close second place to Qatar which has 77 million.

The impact of all this on a market that has already seen big falls in prices, is going to be huge. This is before we take US investments into consideration. In fact given the bearish outlook for LNG prices, the shift from oil to gas will continue even at today's low oil prices. Which is yet another reason to be bearish on oil itself.

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