Australia set to be Largest LNG Exporter
Global liquefied natural gas (LNG) trade is booming, and Australia will play a growing role in the Asian market despite increasing competition and cost pressures, according to the 2014 Gas Market Report that was released by the Bureau of Resources and Energy Economics (BREE) on Wednesday.
The Gas Market Report provides analysis of the Australian gas industry, projections of future growth in LNG exports, and a closer analysis of issues including the cost competitiveness of Australia’s LNG industry and the economic impacts of the coal seam gas industry in Queensland.
‘This report comes at a time of very high interest in the gas market, particularly on the east coast with the imminent linking of the domestic market to the international LNG market, said Wayne Calder, deputy executive director of BREE.
Australia is well on its way to become the world’s largest LNG exporter, with seven new LNG projects currently under construction. This scale of development has put pressure on labour and capital costs, which were often already high as a result of the scope and remoteness of a number of projects.
Additional supply is also emerging from North America and other sources. This is expected to put downwards pressure on LNG prices globally, including in Asia where the LNG price has been relatively high in recent years.
However, Australia is projected to remain a long term supplier to our trading partners in Asia. This will continue because of growing production from our conventional basins off Western Australia and the Northern Territory, as well as our growing unconventional production and world-first exports of coal seam gas.
‘Australia continues to be well placed to benefit from the increasing level of global LNG trade, but producers will need to focus on remaining cost competitive in an increasingly competitive market’, Calder said.
The report is available here.