LNG projects have continued to drive investment in Australia’s resource and energy sectors over the past six months, according to a recent report from the Australian government.
The Resources and Energy Major Projects October 2015 report, released by the Department of Industry, Science and Energy, provides an overview of the status of development across Australia’s mining sector.
The report states that LNG projects account for approximately 88% of the value of committed projects. However, it did note a slight fall in LNG project value and progress: “The downturn in commodity prices has encouraged many companies to implement cost cutting [programmes] to remain profitable. Reducing exploration and capital development expenditure has been one of the principal ways these savings have been delivered.”
The report also said that the declining value of committed projects will not be offset by new investments, which are being increasingly delayed. It continued: “One of the mega-LNG projects, the Queensland Curtis LNG project, has recently been completed and another, the Gladstone LNG project, has started production, but remains on the major project list as it is yet to be fully completed. There are still several mega-LNG projects still under construction which are providing support to the total value of projects on the list.”
More information on the report can be found here.
Edited from press release by Callum O'Reilly
Read the article online at: https://www.lngindustry.com/liquefaction/26112015/australian-lng-projects-drive-investment-1682/