LNG Boosts Australian Economy: Appea

Australian Bureau of Statistics’ (ABS) data released June 6 show that half the country's economic growth of 1% is attributable to exports, with higher LNG exports a key contributor, according to analysis by the Australian Petroleum Production and Exploration Association (Appea).

"This is a timely reminder that liquefied natural gas (LNG) exports are an ongoing source of strength for Australia’s economy," Appea said the same day.

Australia is torn between allowing more exports of LNG for its balance of payments, and holding gas back for domestic use in order to keep the gas price lower and power supplies stable. But as several states have imposed bans or moratoriums on hydraulic fracturing, several projects that by now might be on stream are still in the planning stage. Appea welcomed Northern Territory's recent lifting of its moratorium.

Oil and gas production rose by 8.4% year on year in the 2018 March quarter, following the record $22.3bn in LNG exports in 2016-17. Appea CEO Malcolm Roberts said the data again confirms how significant LNG exports are to sustaining Australia’s economic growth. “Australia’s LNG projects will deliver decades of economic growth, jobs and exports. As new projects reach full production, and as global prices recover, the export dollars earned by Australia’s eight LNG projects are rising quickly. This year, LNG exports are forecast to reach nearly 63mn metric tons, valued at $30.4bn,” Roberts said.

“There is a growing demand for cleaner-burning energy in our region; according to the International Energy Agency, air pollution is causing millions of premature deaths in developing countries.

“With Australia’s abundant resources of natural gas, the outlook should be extremely positive. But for LNG to continue to be a pillar of the nation’s economy amid challenging market conditions and growing competition from other suppliers, exploration and development must be fostered, not restricted.

“All governments should consider the ongoing economic, social and environmental benefits offered by a growing gas industry and focus on co-operative action to reduce the cost and risks of producing gas for both the domestic market and for our overseas customers,” he said.