Gas is expected to continue to play a central role in meeting world energy needs for at least the next 25 years. The International Energy Agency (IEA) in its 2010 World Energy Outlook forecasts that growth in demand for natural gas will surpass that for the other fossil fuels due to its more favorable environmental and practical attributes.
Australia is well placed to meet this forecast demand given its substantial natural gas resources, estimated in excess of 150 trillion cubic feet (equivalent to 100 years of production at current rates). Over 90 percent of these gas reserves lie in large offshore basins off the northwest coast of Western Australia.
Australia exports over 30 percent of its natural gas production in the form of LNG and this share is expected to grow as new gas fields are developed.
Australia currently ranks as the third-largest LNG exporter in the Asia-Pacific region and the forth-largest LNG producer in the world, exporting an estimated 17.9 million tonnes in 2009-10 valued at approximately A$7.8 billion.
Other leading exporters of LNG include Qatar, Indonesia, Algeria, Malaysia, Nigeria, Trinidad, Oman and Egypt.
Based on IEA projections, Australia is well positioned to increase its share of world LNG exports. By early next decade, Australia’s LNG exports could exceed 80 million tonnes per annum or almost four times current capacity. In so doing, the industry will continue to make a significant contribution to the Australian economy.
The majority of Australia’s LNG exports have been to Japan, China and South Korea. The IEA forecasts China and India will account for a significant portion of the projected increase in world energy demand over the next 25 years, reflecting the faster rates of economic growth in these countries.
LNG Facts
LNG is widely recognized as a clean, safe and convenient form of energy that can be readily supplied to distant markets. LNG is natural gas – primarily methane – that has been cooled to minus 161 degrees Celsius to reach its liquid state. Liquefying natural gas reduces the volume it occupies by more than 600 times, making it a practical size for storage and transportation in specifically designed and built tankers. It is transported to dedicated LNG receiving terminals, which have the capacity to store and re-gasify the LNG for supply to markets. LNG, in its liquid state, is not flammable or explosive. (Source: Department of Resources; Energy and Tourism)
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