The Bureau of Resources and Energy Economics (BREE) has released its 2014 Gas Market Report, which provides an analysis of the Australian gas industry and projections of future growth in LNG exports. It also provides a closer analysis of issues including the cost competitiveness of Australia’s LNG industry and the economic impacts of the coal bed methane (CBM) industry in Queensland.
According to the report, global LNG trade is booming and Australia is set to play a growing role in the Asian market despite increasing competition and cost pressures.
Wayne Calder, Deputy Executive Director of BREE, said: “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.”
Australia is set to become the world’s largest LNG exporter. The country currently has seven new LNG projects under construction, which has placed increasing pressure on labour and capital costs.
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 trading partners in Asia. This will continue because of growing production from its conventional basins off Western Australia and the Northern Territory, as well as growing unconventional production and world-first exports of CBM.
Mr Calder added: “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.”
To download the report, click here.
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