Australia has rapidly become a leader in the natural gas space, and is expected to continue growing over coming years as new projects come online to meet international demand.
Driving this increase in demand is a significant upswing in imports from East Asian economies. The scope of this growth has been underscored by recent research conducted by LNGAnalysis, which considered how the market would evolve over coming years.
According to the research, demand for gas is predicted to increase to 400 million tonnes in 2020, compared to only 238 million tonnes imported in the most recent figures. Supplying this growing international demand will be significant new production from both Australia and the United States.
By 2017, these new supplies are predicted to have had a significant impact on the market as a whole, after a number of years where supply has struggled to keep up with demand.
The report also highlighted the growing investment that is occurring in LNG liquefaction capacity around the world. According to the research, an estimated 217 mtpa of new capacity has either been announced, planned or is in progress.
Australia forecast to add significantly to global LNG supplies
Australia’s role in the global LNG market is also predicted to keep growing, thanks to a considerable investment in new capabilities.
That’s the finding from the most recent investment report from Deloitte, which has analysed the state of the commodities market. While the commodities sector in general is facing difficult market conditions, gas is continuing to see increasing investment and a strong project pipeline.
In the next 12 months, Australia’s gas exports are expected to grow considerably, thanks to new generation capacity on both the east and west coasts. That includes the first shipments from the Gorgon project off the coast of Western Australia.
The report stated that: “The scale of activity is staggering. Over the next year alone, Australia will add 41 million tonnes a year of LNG production capacity – equivalent to about 17 per cent of current global demand.
“And there’s plenty more to come. Another 21 million tonnes will be available by 2017 following the completion of the Ichthys LNG project.”
As the natural gas sector in Australia has grown significantly, it’s also important for companies to invest in the variety of services that are necessary to support oil and gas extraction.
MPower are experts at providing a range of electrical and HVAC systems that are ideally suited to the challenges faced by the oil and gas sector. To learn more about our bespoke product offerings, make sure to get in contact with us today.