PERTH (miningweekly.com) – Australia’s monthly liquefied natural gas (LNG) exports have climbed to record highs during October, with values reaching A$1.75-billion, energy market analyst EnergyQuest has revealed.

This was the best performance in 22 months.

The strong October performance surpassed the previous monthly record of A$1.72-billion in Australian LNG export values, set in January last year.

EnergyQuest CEO Dr Graeme Bethune said today the latest robust LNG outcomes were underpinned by many Australian LNG projects now performing above nameplate capacity.

Australian LNG export volumes grew by 6.6% in October to 4.3-million tonnes up from 4-million tonnes in September. Combined with higher oil prices, Bethune said EnergyQuest estimated that the value of LNG exports in October was at least A$1.75-billion, a record.

“There was a particularly strong performance by LNG projects on the west coast,” Bethune said.

“Western Australian projects in October shipped 2.4-million tonnes, up from 2.2-million tonnes in September. Woodside’s Pluto project shipped seven cargoes in October, up from five cargoes in September. Gorgon, operated by Chevron, continues to ramp up and shipped one additional cargo.

“Darwin LNG, operated by ConocoPhillips, shipped five cargoes, up from three cargoes the previous month.”

On Queensland’s east coast, the Gladstone LNG project shipped 24 cargoes, down slightly from 25 cargoes in September.

Bethune said the increased October cargoes went to long-term buyers in China, Japan and Korea.

“Interestingly, the Santos-operated Gladstone LNG project (GLNG) sent its first cargo to Mexico, a country that imports gas from the US. The shipment was delivered to the Manzanillo LNG facility, on Mexico’s mid-west coast, a project which is a joint venture between Mitsui, KOGAS (a GLNG partner) and Samsung.

“This consignment means that all three new Queensland LNG projects – Queensland Curtis LNG, GLNG and Australia Pacific LNG – have now shipped one cargo each to Mexico.

“Asian buyers like KOGAS are increasingly looking to new gas markets and as Mexico imports gas from the US, it is interesting to see Queensland gas being imported into Mexico.

“From a broader market perspective, rather than new US LNG supply heading west to Asia, which is a major market concern for Australian and South East Asian LNG players, this cargo was yet further demonstration of the Australian LNG sector being able to ship east to America,” Bethune said.

“To date, there has only been one cargo going the other way, a Shell cargo from Sabine Pass on the US Gulf Coast delivered to China in August via the Panama Canal.”

The latest EnergyQuest report also noted that despite what is supposed to be an oversupplied market, the LNG spot price in Asia is now the highest it has been all year – rallying to more than $7 per one-million British thermal units.