Natural Gas Set to be a $55 Billion Industry

Natural gas set to be a $55 billion industry

The LNG sector is recording strong growth in Australia.

 Australia’s natural gas sector has already recorded substantial growth and is only going to keep expanding in the coming years. That’s according to new research by Accenture, which has considered how the country’s liquefied Natural Gas (LNG) sector is going to evolve.

According to the report, Australia’s LNG sector is predicted to add $55 billion to Australia’s GDP by 2020. Driving this growth will be a 90 per cent increase in production over the next five years.

There’s also a range of support services that are predicted to benefit from greater investment in this sector. Australia’s total length of operational pipelines for natural gas is expected to grow 45 per cent in the same time period.

Bernadette Cullinane, Asia Pacific managing director for Accenture’s energy industry group, suggested this future growth presents an ideal opportunity to collaborate with other sectors.

“The research overwhelmingly highlighted that there is room for more collaboration on key services such as turnarounds and logistics, with many stating the industry hadn’t done enough sharing during the construction phase,” she said.

“Accelerating industry collaboration and embracing innovation and digital technologies will help drive global competitiveness, attract the next wave of capital investment and transform Australia into the world’s largest and leading LNG industry.”

Demand for gas is also going to keep growing in the future. According to analysis from the International Energy Agency, gas consumption is expected to be 50 per cent higher in 2040 compared to today, making it the only conventional fuel to grow substantially in that time.

Looking forward, Paul Fennelly, acting chief executive of Australian Petroleum Production & Exploration Association (APPEA), suggested a number of new projects in Australia would help to meet this demand.

“Australia has a real opportunity to use the next few years to become a world leading LNG producer, delivering long term returns for all industry sectors… an estimated 13 new LNG trains within seven new plants will come online between 2015 and 2018,” he said.

“It is imperative that everything – operations, equipment, workforce, the regulatory framework and industrial relations regime – is ready.”

Initiatives like the Gorgon gas project are just one example of the new projects currently under development. The construction stage is taking place in some of Australia’s harshest and most remote terrain, creating a new challenge for companies contributing to this process.

MPower is just one of the organisations involved in this work, providing temporary generators to the construction site on Barrow Island. The generators have been designed especially for the project in order to survive the tough conditions faced on the island.

For more on how MPower’s expertise can assist with projects in the oil and gas sector, you can contact us through our website.

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