Over the past six months, five resources and energy projects worth a combined AU$1.2 billion were completed in Australia according to the Resources and Energy Major Projects - October 2014, released by the Bureau of Resources and Energy Economics (BREE).
“Declining commodity prices have continued to weigh on investment decisions with many developers revisiting project feasibility studies amid weaker than expected prices,” explained Wayne Calder, Deputy Executive Director of BREE.
“The renewed industry-wide focus on improving productivity and lowering costs has extended to new projects. Developers are reassessing their plans and considering less capital intensive options to improve the economics of their projects.”
As at October, there were 44 projects at the Committed Stage with a combined value of AU$228 billion compared with 48 projects with a combined value of AU$229 billion six months earlier. LNG projects continue to drive resource and energy investment in Australia, accounting for approximately 87% of the value of committed projects.
Investment in the Australian resources and energy sector is projected to moderate in the medium term as the large LNG projects are completed. Projects currently progressing through the development pipeline are unlikely to be of a scale sufficient to offset the reduction in investment associated with the completion of the ‘mega’ LNG projects.
Adapted from press release by Katie Woodward
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/27112014/lng-projects-driving-investment-in-australia-1875/