SYDNEY, July 19: Woodside Petroleum, Australia’s largest oil and gas firm, lifted its full-year production forecast by as much as 13 percent on Thursday after its Pluto liquefied natural gas (LNG) project performed better than expected in the last quarter.
The industry’s No. 2, Santos, reported a 9 percent hike in second-quarter production, its best quarterly result since 2009.
Woodside shares jumped 7 percent to $32.49 on the news, on track for the biggest one-day percentage gain in three years, while Santos rose 3 percent at $10.41 by 0213 GMT, outperforming a 1 percent rise in the broader market.
The LNG market has tightened sharply following the Fukushima nuclear disaster which has stoked Japan’s demand for gas, with global LNG demand growth expected to average around 4 percent a year to 2025.
But several projects, including Woodside’s Pluto and Browse plants and Santos’ Gladstone, have suffered setbacks and cost blowouts in recent months, raising concerns they may struggle to find gas that has already been pre-sold to Asian customers.
Against that backdrop, Woodside reported that the A$15 billion ($15.5 billion) Pluto plant, which began production in April and shipped its first cargo in May, had exceeded expectations with the delivery of eight cargoes.
Woodside Chief Executive Peter Coleman said the ramp up of the plant had seen production beat contracted volumes and three spot cargoes were sold during the quarter.
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