Australia ahead of US in exporting LNG
Australia could become the world’s largest liquefied natural gas exporter by 2019, the U.S. Energy Information Administration said in a Thursday analysis.The Aussies can thank the Obama administration for their advantage since it has stalled approval of LNG export facilities at the request of the anti-energy left. Australia will probably serve much fo the Asian market while the US should have an eventual advantage in the European market. But the US is way behind because of Obama administration dithering response on regulatory approvals. There was a lack of strategic thinking in the administration which allowed Russia to continue to impose high prices on Europe.
The country’s Gorgon project shipped its first cargo to Japan last week, and three other projects in eastern Australia have been fully or partially commissioned since 2014.
Combined, the country has a current liquefied natural gas export capacity of 6.2 billion cubic feet per day. If additional capacity is built out as planned, Australia would hold 11.5 billion cubic feet of natural gas export capacity, or roughly one-third of the total market in 2014.
The most recently commissioned project is the Gorgon LNG, on Barrow Island off the coast of northwest Australia. The project includes a natural gas plant, a carbon dioxide injection project and a liquefaction and export terminal. Combined, the project was originally budgeted at $37 billion but expanded to a total cost of $54 billion by 2013 — making it both one of the largest and the most expensive LNG project to date.
Chevron operates Gorgon and owns a 47.3 percent in the liquefaction plant and other associated projects, which include a carbon dioxide injection plant and a domestic gas facility serving Western Australia. Exxon Mobil Corp. and Royal Dutch Shell both own 25 percent stakes. Utilities Osaka Gas, Tokyo Gas and Chubu Electric Power own the remaining 3 percent interest.