Australian LNG Sector Faces Full Impact of Pandemic, Oil and Gas Price Crash

Australia’s LNG sector is feeling the full impact of the collapse of oil and gas prices as its biggest energy companies cut asset valuations by billions of dollars, big ticket projects face delays, cash flows decline and LNG cargoes are deferred or delayed.

The pressure on Australian oil and gas has been building since the start of the coronavirus pandemic, but the outlook on energy prices has continued to sour, and asset write-downs by global oil majors meant the rest of the industry had to follow suit.

In the week of July 13, ASX-listed Woodside Petroleum recorded $4.37 billion in post-tax impairment losses and provisions in its half yearly financial statements, while Origin Energy said it would recognize non-cash charges of $1.16 billion to $1.24 billion in its full-year results on August 20…

View entirety: S&P Global Platts