Australia Reserve Replacement Ratio “Sobering”
Australian oil and gas reserves continued their slide in 2017, taking the country's reserve replacement ratio for gas to a “sobering” minus 32%, Australia-based advisory firm EnergyQuest said March 9.
Proved and probable (2P) gas reserves fell by 5,355 petajoules (PJ), or 143bn m3, which compared to the year’s production of 4,100 PJ (109.5bn m3), it said.
Australia's total petroleum production during the year reached a record level of 819.9mn barrels of oil equilvalent, up 16.5% year on year, it said.
Meanwhile, Australia’s LNG export revenue is accelerating, hitting A$25,652mn in 2017, up by 43.2% from the previous year and the country’s new LNG projects are starting to generate profits, “but nowhere sufficient as yet to justify the original investment,” EnergyQuest said.
The average Australian LNG price (free on board) increased 6% quarter on quarter in 4Q2017 to A$8.27/gigajoule -- which converts to A$8.725/mn Btu, or US%6.85/mnBtu -- said EnergyQuest, adding that average domestic gas prices continued to be around A$3/GJ lower than export prices on the east coast and A$4/GJ on the west coast.
Australian LNG exports not far behind Qatar's in 2018
EnergyQuest forecasts that Australian LNG exports will reach 65mn metric tons this year. (This would put the country not far behind Qatar's nominal export capacity of 77mn and recent actual production of 79mn mt, and still on course to exceed Qatar's by 2020)
The advisory firm also flagged a potential looming issue following last week’s border agreement between Australia and Timor Leste, saying that while it could smooth the way for development of the Sunrise gas field, it may also lead to demands from Indonesia to re-negotiate its border and put some oil and gas projects and exploration acreage currently in Australian waters at risk.