LNG export powerhouse Australia has not received any formal request to supply additional LNG to Europe should the tension between Russia and western nations such as the US over Ukraine result in east-west gas flows being cut off.
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Register NowAustralia's Minister for Resources and Water, Keith Pitt, said in a Feb. 4 email reply to S&P Global Platts' queries that no such formal request had been made by the US or European leaders.
"As a leading international supplier of LNG, I have indicated Australia stands ready to assist should any request from our international friends be received," Pitt said.
"The nature of what assistance Australia can provide will be considered if a formal request is made, however, as I have stated previously, domestic supply and meeting existing contracts will remain our priority," he added.
Australia has a total LNG nameplate capacity of 88 million mt/year, of which about three-quarters are sold via long-term contracts, according to information from Australia's Department of Industry, Science, Energy and Resources.
There is latent capacity at Australia's export facilities with the country's LNG outflow in the 2020-2021 (July-June) fiscal year at 77.4 million mt, the department said in its December edition of Resources and Energy Quarterly. The country's LNG exports are forecast to reach 82.5 million mt in the current fiscal year.
Australia's east coast has been concerned with gas shortages over the past several years and the government in 2017 implemented the Australian Domestic Gas Security Mechanism, which has, among its powers, the ability to restrict LNG exports should there not be sufficient gas supply domestically.
When asked at the National Press Club on Feb. 1 about the possibility of skyrocketing domestic gas prices in the event of Russia cutting supply to western Europe, Australia's Prime Minister Scott Morrison cited the potential use of the security mechanism.
"Australian gas must be for Australians," Morrison said. "But there are also opportunities for our gas producers."
Australia is responsible for about 22% of seaborne LNG exports.