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Markets & Forecasts

Australian LNG exposed as virus hits demand

Australia’s LNG sector risks being significantly impacted as China – and potentially other Asian nations – works to contain the coronavirus by locking down civilian movement Australia’s LNG sector risks being significantly impacted as China – and potentially other Asian nations – works to contain the coronavirus by locking down civilian movement.
By Sally Bogle 13 February 2020 Asia Pacific / Supply & Demand 0 35021
LNG vessel Methane Rita Andrea arrives at Queensland Curtis LNG facility, Australia. (BG Group)

The key issue: While Australia’s east coast LNG projects are most exposed to China through long-term offtake contracts, all of the country’s export facilities are threatened by the disruption caused by the coronavirus.

Interfax analysis: There is mounting concern that the Australian LNG export industry could be hit hard by China’s drop in gas demand as industrial activity slows because of the coronavirus.

Uncertainty remains over the scale and duration of the outbreak, which has so far claimed more than 1,000 lives – mostly in China....