Revenue generated from liquefied natural gas (LNG) investment in Australia is predicted to soar from US$ 12 billion to US$ 61 billion over the next half decade. Currently, LNG plants under construction in Western Australia, Queensland and the Northern Territory, stand at US$ 188 billion, representing over three-quarters of the country’s entire resources-related investment. It is anticipated that Australia’s present export capacity of 25 million tpy will increase to 88 million tpy.
However, due to the inflation of the dollar, and the flourishing construction industry, costs are only expected to rise. The construction of LNG plants in Northern America and Africa has become more commercially viable. Currently, Australia invests US$ 24 billion in LNG. However, if the construction of LNG plants in the country come to a halt, this figure is expected to drop dramatically to just US$ 2 billion by 2017.
At a conference in September, Santos WA and NT head John Anderson urged that new projects can continue to be approved in Australia. "There is strong evidence that Australia can continue to be a destination for major investment in new projects,” he said. "Australia's current oil and gas investments and their projected output to 2025 represent an increase in Australia's GDP of just over $260bn, equivalent to 20 % of the economy's current annual output. The economic contribution of any new LNG projects would be over and above this already significant contribution.”
Anderson said that up to US$ 145 billion could be invested in this market. He called on the government to provide economic stability, untrammeled policies on gas resources, and more prolific labor markets.
Edited from various sources by Ted Monroe