Insight
LNG short-run marginal costs – Australia's place
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Report summary
Amidst a growing market glut, attention has turned to projects' survival – and the short term costs to keep existing projects running. Most conventional LNG projects have very low short run costs, so will continue producing no matter how low prices go. But the costs of unconventional gas fed projects in the US and Queensland are much higher due to ongoing feed gas costs. Most Australian projects, having moved from the construction to the production phase, will lie very low on the short term cost curve; but three are at risk of supply curtailment due to high ongoing feedgas costs.
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- LNG short-run marginal costs – Australia's place
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