Australia slows LNG exports amid health crisis

Dozens of laden LNG tankers either spent weeks off Dampier or are taking more time to reach import destinations. Export projects in Australia have gone under maintenance as shipments slow

AUSTRALIA’S liquefied natural gas exports have climbed on year in May but many of its cargoes saw delays in their deliveries, in yet another sign of the coronavirus pandemic pulling back demand for the super-cooled commodity.

Australia-focused research consultancy, EnergyQuest estimated that forty-one LNG cargoes loaded from Australia’s export projects have either been slow-steaming or waiting on final destination calls at anchorages from May through to early June.

A cargo from Chevron’s Wheatstone LNG plant was hovering off Dampier on Australia’s west coast, for almost three weeks before heading out to Manzanillo, Mexico, the consultancy said in its May report.

Lloyd’s List Intelligence data showed LNG tanker British Mentor, which has been holding the Wheatstone cargo, is now due to arrive at Manzanillo late this month.

To date, cargoes are still seen floating off Australia’s west coast for an extended time.

LNG tanker, Prachi, which called at Chevron’s Gorgon LNG plant in late May, has yet to receive final orders for its next port of call.

A second carrier, Northwest Sanderling has anchored off Dampier for at least seven days and is only due to call at Kisarazu in Japan towards the end of this month.

Australia’s LNG exports were almost flat on year in May at 6.4m tonnes following near-record shipments of 6.8m to 6.9m tonnes posted for March and April, according to EnergyQuest.

Buyers of LNG from the APLNG plant in Queensland state have exercised downward quantity tolerance, which allows them leeway to substitute certain numbers of contract cargoes with purchases on the spot market.

Planned or extended maintenance at APLNG and a second plant along the west coast, Ichthys LNG, have also held back exports, the consultancy said.