New LNG Projects Make Australia a Second Global Leading LNG Supplier after QatarOct 9th, 2017
John Watson, CEO of Chevron, announced the launch of the first LNG project in Western Australia. A project called Wheatstone will significantly strengthen the company’s position in the region, as well as ensure profits for decades to come.
In a matter of weeks, Chevron will send its first tanker with liquefied gas. The second facility will be launched in the first part of the next year. Both plants will produce almost 9 m/t of liquified natural gas per year. The construction of new facilities has been finished within six years and is worth approximately $ 34 billion. Gorgon LNG which was built by Chevron in this year is one of the most expensive projects across the globe – 54 billion dollars. Three lines of Gorgon LNG together will annually produce 15.5 tonnes of LNG.
Together with Chevron, in 2018 Australia will obtain new production facilities from Inpex Corp and Shell. Today Australia exports 21 million tonnes of LNG every year. The three projects will expand Australian capacity as an LNG exporter, and therefore by 2020 LNG exports from this country will amount to 88 million tonnes.
Thus, Australia can be compared with Qatar, which is today the largest global supplier of LNG. In June 2018, the annual exports of Australian LNG will amount to 74 million tons. Obviously, LNG production in Australia is rapidly developing that positively impacts the export volumes. In 2017 the export of LNG increased by 23% compared to last year (nearly 64 million tonnes.)
Almost all new projects are focused on the countries in the Asia Pacific, particularly China, South Korea and Japan, which consume the largest number of Australian LNG. In 2016 Australia delivered 97% of LNG to the region, and this year also intends to increase exports to Asia Pacific consumers.
According to the Russian experts, in 2020 Qatar will increase exports to 100 million tonnes per year, and the US supplies will amount to 80 m/t. In any respect, Australia will surpass the US in LNG supplies to global consumers.