Australian LNG Exporters may Avoid Major Output Cuts, but Reduce Spot: EnergyQuest

Australia’s LNG export projects are likely to weather the weak price environment caused by the COVID-19 pandemic and avoid any major output cuts or trains shut-ins but there is expected to be fewer spot cargoes, consultancy EnergyQuest said Thursday.

The fact that most Australian LNG is sold under long-term oil-linked contracts should hold the country’s projects in better stead than those in the US, the firm said. “Oil prices would need to remain very low for a considerable period for there to be shut-ins,” EnergyQuest said, noting that there are indications that Western Australian LNG projects are cash flow positive at oil prices above about…

View entirety: S&P Global Platts