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Markets & Forecasts

Australian LNG – More supply still to come

The market is underestimating global LNG supplies from current facilities, including those in Australia, Akap Energy’s Anish Kapadia writes in this contributed feature The market is underestimating global LNG supplies from current facilities, including those in Australia, Akap Energy’s Anish Kapadia writes in this contributed feature.
By Anish Kapadia 20 February 2019 Asia Pacific / LNG 0 33948
Several Australian projects (such as Wheatstone, above) have demonstrated an ability to produce above their nameplate capacities. (Chevron)

Our analysis of Australian LNG supply suggests production in the early-to-mid 2020s will be much higher than market forecasts, despite expectations of falling production from declining fields. We think production could grow to around 95 mtpa by the mid-2020s because of a substantial upside to the nameplate capacity of existing facilities, in addition to tie-backs and new developments keeping existing facilities full and utilising new brownfield LNG trains. Australia’s key advantages over other locations for liquefaction projects are its low offshore upstream operating costs, cheap...