Japan has displaced China as Australia’s top export destination in financial year 2022, according to EnergyQuest, with China importing 25 million tonnes (38 per cent) of Australian export volume, less than the 28.3 million tonnes (41 per cent) in financial year 2021.
China has been the world’s fastest growing LNG market.
However, this came to an abrupt halt in the first half of this year, with imports in April at the lowest level since early 2020.
The fall reflects COVID lockdowns and the slowing of the Chinese economy.
However, the fall in Australian China deliveries of 3.3 million tonnes was the largest of any supplier to China and was offset by increased China deliveries from Qatar (+2.3 million tonnes) and the US (+1 million tonnes).
The biggest fall in Australian exports to China was from Gladstone, which delivered 200 China cargoes in financial year 2022, down from 238 cargoes a year before.
Deliveries from the west coast were also down but not as much, from 201 cargoes to 190 cargoes.
However, notwithstanding the drop in China cargoes from Gladstone, the east coast more than offset this with increased cargoes to Japan, Korea, Malaysia, Singapore, and Thailand.
Japan imports rose to 26.7 million tonnes (33 per cent) of Australian export volume, up slightly from 26.6 million tonnes (34 per cent) in financial year 2021.
Japanese LNG imports decreased by six per cent in the 11 months and with steady Australian volumes, Australia’s market share increased from 37 per cent to 40 per cent.
Korea continues to be Australia’s third most popular export destination, importing 11.3 million tonnes in financial year 2022, compared to eight million tonnes in 2021.
EnergyQuest estimates Australia exported a record 82.6 million tonnes of LNG in the 12 months to 30 June 2022, well up on the 77.3 million tonnes in financial year 2021, and more than the previous record set in financial year 2020 of 79.3 million tonnes.
This is a good result given Prelude was shut-in for over four months of the year, and the depleting field supply at NWS and Darwin.
Australian projects operated at average 93 per cent of nameplate capacity of 88.6 million tonnes.
QCLNG, Gorgon, Pluto, and Ichthys all operated at over 100 per cent of their nameplate capacity for financial year 2022, with Pluto operating at almost ten per cent above its nameplate capacity.
Western Australian production was up by nine per cent on financial year 2022 of 24 million tonnes, up three per cent from financial year 2021.
The three Gladstone projects operated at 92 per cent of nameplate capacity, with six months over 2 million tonnes.
Western Australia continues to dominate Australian LNG exports, supplying 57 per cent of national exports, while Queensland produced 29 per cent and the Northern Territory produced 14 per cent.
The Gorgon project in Western Australia was the largest contributing project, followed by the North West Shelf.
Gorgon’s production rose almost 45 per cent in financial year 2022 due to the restart after shutdowns required to repair cracks in the cooling kettles on all three trains during financial year 2021.
Prelude had the highest percentage growth, up 92.4 per cent on production volumes from financial year 2021 to produce two million tonnes in financial year FY 2021.
Ongoing safety issues once again saw production halted from Prelude for four months from December 2021.
EnergyQuest estimates total financial year 2022 export revenue was A$70.18 billion, up 130 per cent on the A$30.48 billion in financial year 2021.
Export income was driven by higher export volumes and much higher oil prices.
