IEEFA: Australian domestic gas demand continuing to fall

The Australian Gas and LNG Tracker allows users to visualise Australia’s gas production and LNG export demand and flows. It uses data compiled from a range of authoritative sources, including Kpler and the Australian Energy Market Operator (AEMO), along with IEEFA’s own analysis. The latest version of the Tracker updates and expands upon the previous version, released in June.

Key findings revealed in the updated Australian Gas and LNG Tracker include:

• Australia continues to export large volumes of LNG, with exports increasing marginally over the past year.
• Globally, LNG supply also increased y/y in 1H26 despite a fall in exports from Qatar following the Iran war.
• Asian LNG imports in 1H26 were down y/y, remaining below the peak in 1H24, driven by a large fall in China’s imports.
• LNG exporters accounted for a larger share of Australian gas production at the same time as domestic demand fell.
• In eastern Australia, Victoria continues to export more gas to other states, on a net basis, than Queensland.

“The latest Tracker data shows that global LNG markets have managed the impact of the Iran war through increased US LNG supply and much lower demand from China,” said Joshua Runciman, Lead Analyst, Australian Gas at IEEFA. “Australian LNG exports also increased, albeit only marginally. This, along with falling domestic demand, saw the LNG sector soak up more of Australia’s gas production for export.”

“Despite oft-cited arguments that Queensland does the heavy lifting to supply Australia’s east coast gas market, Queensland’s net supply to other states over FY2025 – 2026 was virtually zero. Queensland’s supply in the winter months was offset by imports during summer.”

Read the article online at: https://www.lngindustry.com/special-reports/02092026/ieefa-australian-domestic-gas-demand-continuing-to-fall/