Australian LPG production is forecast to reach 97,000 bpd (3 million tons) in the 2019-2020 fiscal year, slightly lower than 99,000 bpd in the previous outlook, according to the government’s commodity forecaster the Office of the Chief Economist (OCE). In the previous fiscal year, Australia produced 66,000 bpd of LPG. The downward revision was mostly caused by maintenance at the 3.6 million tons/year Prelude LNG project off the Western Australian coast since February.
OCE also lowered LPG output forecasts for 2020-2201 slightly 101,000 bpd to 100,000 bpd. Meanwhile, the 2021-2022 estimate was kept unchanged at 101,000 bpd. OCE noted that delays of final investment decisions for several gas projects might affect LPG and condensate output in the next fiscal year.
The startup of 8.9 million tons/year Ichthys LNG project and the Prelude FLNG venture contributed to a rise in LPG output in the 2019-2020 fiscal year. Both facilities can produce up to 1.6 million tons/year and 400,000 tons/year of LPG, respectively. Australia’s upstream LPG production averaged 8,800 tons/day in April, higher than 8,300 t/d in March and 3,700 tons/day in April 2019.
