Australia’s LNG Revenue Surges to Monthly Record $3.1b in March on Higher Oil Prices

We estimate that LNG export revenue increased in March to a record $3.1 billiondue to higher oil prices, with WA export revenue of $2.0 billion, Queensland revenue of $0.95 billion and Darwin revenue of $0.18 billion. Geopolitical tension in the Middle East have pushed up oil prices to $72.58 a barrel, as of 13 April, the highest closing level since late November 2014.

Prices in February for LNG spot cargoes for Japan fell from a more than three-year high in January. The average contract price for spot LNG cargoes for shipment to Japan was $10.60/MMBtu in February, down from $11.00 in January, which was the highest since December 2014, according to data from the Japanese Government (METI). The average price of spot LNG cargoes that arrived in Japan in February was $10.90/MMBtu (Reuters, 9 March).North Asian LNG spot prices are continuing to fall. As of 30 March, the Sling North Asia index was US$7.05/MMBtu (A$9.17) for May deliveries. Spot prices for post- winter deliveries are likely to continue to be lower. However, average prices under thePlatts JKM forward curve from CME are US$7.91/MMBtu for 2018 and US$7.55/MMBtu for 2019, slightly higher than in February.