The Australian Energy Market Operator notes cargoes from Gladstone over July to September were at record volumes for the usually-quiet quarter, usually known as a ‘shoulder period' in Northern Hemisphere trade being between summer and winter.
It is the fourth-highest quarter in the past seven years the three export concerns have been operating. Santos' underperforming Gladstone LNG terminal noted an increase in demand of 27.7 petajoules, or eight cargoes over June.
The Origin Energy-operated APLNG and the Shell-operated Queensland Curtis LNG both recorded much smaller, single digit increases.
In the nine months to September total demand for exports from the east coast was 1038PJ, higher by 62PJ than two years ago; the last record.
Cargoes rose by nine for the quarter and production from Queensland's CSG fields by 21.4PJ over a year ago.
However, Australia's second, or first depending on the month, market is not seeking more long term contracts with the nation as spot prices rise by 250% in three months. Australia is by far the single largest supplier to China, sending more than the US and Qatar combined.
EnergyQuest reported in its September report last month Chinese buyers are signing long term contrast with the US.
The nation signed a commitment to hugely increase energy imports two years ago under the Trump administration, but never hit the targets it signed up for.
EQ references a Reuters report which finds "at least" five Chinese firms signed up for long term, large scale contracts.
"Signing LNG deals with US suppliers is a major change for Chinese buyers and suggests that trade relations may have improved. China is also seeking additional Qatari volumes. CNOOC has recently signed a 15-year deal to import 3.5MMtpa from Qatar," it said.
China has not signed a new contract with an Australian company for more than two years. The last was ENN, which in 2021 sold a large share of its interest in Santos, in 2019 which
signed a heads of agreement for 1MMtpa from Woodside Petroleum's unsanctioned Scarborough project. The two still need a sales and purchase agreement.
"Delivered prices of Australian LNG exported to China were lower than US prices, being US$10.44/MMBtu and US$12.01/MMBtu respectively in August and Australian and Qatari prices were similar," EQ said.
