Although January volumes were unaffected, analysts said Australian LNG exports are most exposed to any potential cargo cancellations by Chinese buyers, on account of the ongoing coronavirus outbreak and deteriorating gas demand.
In 2019, Australia was China’s largest natural gas supplier. Amid concerns that more Chinese LNG importers could back away from supply contracts, force majeure declared last week by CNOOC, China’s largest LNG importer. For Australian suppliers, this is particularly concerning as it largely supplies to China on long-term contracts.
A force majeure notification has not been received by Australian gas producer Woodside, one of CNOOC’s biggest suppliers. Potential impacts on the market are closely monitored by Woodside.
Total Australian LNG exports last month were 7 million mt. The amount was slightly lower than December’s record 7.1 million mt. Above Qatar’s nameplate capacity of 77 million mt, the January shipments were at an annualized rate of 82.2 million mt/year.
