PIRA: more Australian LNG heading for China

NYC-based PIRA Energy Group reported that just as economic indicators for China reach what is expected to be their low point in 2Q according to its forecasts, yet another Chinese supplier at BG Group-operated Queensland Curtis LNG project started up its second 5.5-bcm/yr train.

Though the +99 BCF build did not prove to be an outsize surprise in the United States, the regional dispersion of injections merits a closer look. The less-than-expected 57 BCF injection in the consuming east was offset by a sizable injection in the producing region, PIRA said in its report.

Despite transient demand losses unfolding from the holiday in Thursday’s reported build, the quickened pace of storage injections in the producing region, particularly non-salt, is hard to overlook.

Given the situation in Greece and the extreme heat in portions of Europe, the relative lack of price volatility in European gas could be perceived as somewhat surprising. But then again, that’s what happens in a well-supplied market with sizable amounts of flexible import capacity; options emerge when they are necessary.

Image: BG Group