LNG WORLD MARKET UPDATE  
August 17, 2016
In recent news, Australian government restrictions on new onshore drilling may be lifted, the Wheatstone LNG project expanded capacity, Russia's Rosneft ships first ever supply of LNG to Egypt, and Petronet LNG has expanded their Dahej import terminal in India. The weekly news blast is intended to provide relevant industry information to Alaskan stakeholders and inform audiences of the competitive landscape in the global LNG market. Subscription options for this report are available at the bottom of this email. Please contact Leah Levinton at llevinton@agdc.us with questions or suggestions.
Natural Gas
HH Spot Price
$2.71
August 15 close
 
Weekly Change
$0.11  (3.9%) 
 
Trend
Source: DOR
LNG Import Price
Japan
$6.00
July 2016
 
Monthly Change
$0.00  (0%) 
 
Trend
Source: World Bank
Australia May Have Trouble Keeping Up With Demand for its LNG
(Reuters; August 15) - Australia is expected to become the world's largest liquefied natural gas (LNG) exporter by 2019, yet it faces challenges as new onshore drilling is restricted and gas companies are cutting spending. Later this month, the state of Victoria's government will decide whether to lift a ban on onshore gas developments, which may be a solution to progress gas development. Read more
Wheatstone Expanding Capacity and Expecting First Cargos in 2017
(InterFax; August 11) - Wood Mackenzie has evaluated Wheatstone and says it expected Wheatstone to cost more than originally forecast, but that it will also produce marginally more. "We have remodeled Wheatstone LNG economics, increasing our estimate of capex by 15% to US$36 billion. We have increased our expected output to 9 MTPA, in line with the performance seen at other Australian LNG projects. We expect first cargo in H2 2017," Wood Mackenzie said in its latest analysis, adding that it expects Wheatstone's second train to come on-stream in early 2018. Read more
Rosneft Receives $15.6M for its First Ever LNG Supply to Egypt
(Tass; August 15) - Russian state-owned oil company Rosneft has received $1B rubles ($15.6M) for its first ever supply of LNG to Egypt under the contract with Egyptian Natural Gas, the company said in a report. Read more  
India's Petronet Commissions Regasification Facilities at Expanded Dahej LNG Terminal
(LNG World News; August 15) - India's largest importer of liquefied natural gas, Petronet LNG, said that the newly built regasification facilities under the Dahej LNG terminal's expansion project have been commissioned and are under stabilization. Read more