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Australia CSG-LNG supply breakevens: are costs low enough?


Australia CSG-LNG supply breakevens: are costs low enough?

Report summary

The CSG-LNG projects, APLNG, GLNG and QCLNG, do not have enough low-cost gas to economically supply their long-term contracts in a low price environment. The three projects have already spent around US$35 billion developing their upstream supply areas, which will provide just under half of the plants' gas requirements between now and 2040. However, the majority of the yet-to-be-drilled acreage has much higher development costs and we estimate that up to 43% of this acreage could be at risk of being uneconomic if prices are low. The decision to develop new acreage will therefore depend on the financial position of the main players and their price outlooks, for both LNG and the Eastern Australian domestic gas market.

What's included?

This report includes 2 file(s)

  • Australia CSG-LNG supply breakevens: are costs low enough PDF - 431.77 KB 6 Pages, 0 Tables, 3 Figures
  • CSG-LNG supply breakevens are costs low enough.xls XLS - 123.00 KB

Description

This Upstream Oil and Gas Insight report highlights the key issues surrounding this topic, and draws out the key implications for those involved.

This report helps participants, suppliers and advisors understand trends, risks and issues within the upstream oil and gas industry. It gives you an expert point of view to support informed decision making.

Wood Mackenzie's 500 dedicated analysts are located in the markets they cover. They produce forward-looking analysis at both country and asset level across the globe, backed by our robust proprietary database of trusted research.

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  • Executive Summary
  • CSG-LNG cost of future supply
    • CSG cost of equity supply, contracted position and capacity by project (excludes domestic gas)
    • LNG netback prices
  • Interplay between high-cost plays and price points creates options
  • Conclusions
  • Methodology
    • CSG acreage quality

In this report there are 3 tables or charts, including:

  • Executive Summary
  • CSG-LNG cost of future supply
    • Australia CSG-LNG supply breakevens: are costs low enough?: Image 1
    • Australia CSG-LNG supply breakevens: are costs low enough?: Image 2
  • Interplay between high-cost plays and price points creates options
  • Conclusions
  • Methodology
    • Australia CSG-LNG supply breakevens: are costs low enough?: Image 3
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