Australia’s liquid natural gas (LNG) industry has seen considerable growth in recent months, driven in part by the increase in new LNG projects that are either already online or in the construction phase.
In fact, the Reserve Bank of Australia (RBA) has recently announced forecasts for the growth of the country’s LNG sector over the next few years. In fact, by 2018, gas will be the country’s second largest bulk commodity export.
As well as being a major part of the country’s exports, Australia is expected to quickly rise up the world rankings in terms of LNG production. Over the next three years, the RBA expects the country to go from the third-largest exporter of gas to first place, with total capacity of around 85 million tonnes per annum.
Currently, the majority of Australia’s LNG is exported to Japan, but this is expected to diversify further in coming years. While Japan will remain the single largest market, it’s share of LNG exports from Australia will drop to less than 50 per cent. Instead, China and South Korea will both emerge as major purchasers of Australian natural gas.
Finally, the investment in infrastructure and benefits of higher production are both predicted to boost the overall performance of the economy. The RBA stated that new investment in the gas industry has already totaled $200 billion over the last few years, as firms have invested in new production capacity. This equates to 12 per cent of the country’s annual GDP.
LNG projects move towards completion
While investment in Australia’s LNG production capabilities has been considerable in recent years, many projects have continued to move towards completion.
That’s according to the latest findings from energyquest, which has released a detailed snapshot of how the LNG industry is tracking. Among the core findings were an update on the major offshore projects currently being undertaken around Australia. The research reported that the Gorgon platform was 90 per cent complete at the end of 2014, while the Ichthys platform has reached 64 per cent.
Even with these projects still in the construction phase, Australia’s gas production has continued to grow. According to the research, domestic gas production rose 2 per cent last year, while petroleum production is up by 6 per cent.
As Australia’s natural gas industry continues to grow, companies will need to be sure they have the right advice and equipment throughout the installation process. At MPower, we are industry experts at providing electrical and ventilation services to the offshore oil and gas industry, ensuring you have the right solution to meet your needs.