Reports confirm strong investment pipeline for Aussie oil, gas
Australia’s peak oil and gas body Appea said that two federal government reports released on December 20 confirmed there is a multibillion-dollar oil and gas investment pipeline well into the future.
The Resources and Energy Major Projects 2021 Report reveals LNG, oil and gas projects account for 42% of the total for the sector, twice the contribution of the next source, iron ore at 21%.
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In the 12 months to October 2021, the number of resources and energy major development projects increased by 9% to 367 projects.
Over A$11bn ($7.82bn) was committed to oil, gas and LNG projects – including the Barossa gas and Jansz-lo Compression projects – since the last report. After the reporting period, Woodside and BHP announced A$16bn FID for their Scarborough and Pluto Train 2 projects in Western Australia, Appea said.
Appea deputy chief executive Damian Dwyer said the oil and gas industry’s A$27bn investment commitment in the sector over the past 12 months showed it would play a key role for a long time to come.
“This is confirmation of the growth and opportunities in the sector as we finish a strong year and look to a strong future,” he said.
“The Major Projects report does highlight that more investment is needed in exploration to ensure local supply – the cheapest gas is the gas closest to the customer.
“The demand for the cleaner energy provided by gas is there, the willingness to invest is there but we do need investment certainty and stability to ensure more exploration. This includes further progress on reform of the EPBC Act and timely implementation of new regimes in the Northern Territory and WA.
“There is also a strong pathway for hydrogen and carbon capture storage in which APPEA members are industry leaders.”
The second government report, Resources and Energy Quarterly, reveals surging demand for gas will help push Australia to a record A$379bn of export earnings in 2021-22, up from A$310bn previously. For example, LNG export earnings were forecast to increase from A$30bn to A$63bn this financial year, Appea said.
“This all shows confidence in the oil and gas industry remains high,” Dwyer said.