PERTH (miningweekly.com) – Australia has exceeded Qatar and Malaysia as the largest supplier of liquefied natural gas (LNG) to the world’s largest buyer, Japan, for the first time, market analyst EnergyQuest reported on Friday.

The firm’s latest EnergyQuarterly report found that Australia exported some 15.9-million tons of LNG to Japan during 2012, overtaking Qatar, which exported 15.7-million tons and Malaysia, which exported 14.6-million tons.

The export milestone was achieved at a time when Australia achieved record LNG export volumes and revenue. EnergyQuest reported on Friday that the start-up of the Pluto LNG project in 2012 propelled Australia into top position among LNG exporters to Japan.

“Australia has captured the biggest share of a growing market for LNG,” EnergyQuest CEO Dr Graeme Bethune said.

“Japanese LNG imports were a record 87.3-million tons in 2012, 11% higher than the previous year, and 18.2% of that LNG came from Australia. One of the major reasons for the increase in Japanese LNG demand is the shutdown of nuclear reactors in that country following the devastating earthquake in March 2011.”

Bethune noted that Japan’s imports from Australia were set to keep increasing as the Gorgon, Queensland Curtis LNG, Australia Pacific LNG, Wheatstone, Prelude and Ichthys LNG projects come into production over the next five years.

“The Inpex Ichthys project – offshore of north-west Australia – alone is expected to supply around 10% of Japan’s LNG needs when it comes into production in 2017,” he added.

Bethune said Australian LNG exports reached a record 21.8-million tons in 2012, up 11% from 2011, and the value of exports amounted to A$13.8-billion, an increase of 25% on the previous year, making LNG one of Australia’s major exports.

He said exports were likely to increase further in 2013 with a full year of production from Pluto, and then each year thereafter to at least 2017 as new projects come into production.

Global LNG trade fell slightly in 2012. Lower demand in Europe was largely offset by higher Asian demand, said Bethune, who added that the global LNG market was expected to remain tight until 2015 when new Australian projects are in production.

Meanwhile, the report also noted that Australia’s natural gas production passed 2 000 PJ for the first time in 2012, reaching a record 2 141 PJ.

Domestic gas production was a record 1 101 PJ, reflecting the introduction of the carbon tax.