Regional LNG: Australia set for LNG boost: Report
Monday, November 29 2004 - 02:47 AM WIB
The two biggest growing markets are expected to be China, with which Australia already has a major contract, and India.
Demand from India is likely to rise to 11 million tons by 2015, and 18 million tons in China at the same time.
Australia's current exports of LNG, from Western Australia's North West Shelf, is almost 12 million tons.
ABARE acting executive director Vivek Tulpule said demand would also increase from three existing large markets, Japan, South Korea and Taiwan.
"The outlook for LNG in the Asia-Pacific region is strong, with LNG imports projects to nearly double in the next 10 years and this could provide opportunities for Australia's existing and planning LNG export developments," he said in a statement.
Potential regional LNG supply capacity over the coming decade is significant, with a large number of expansions and new projects proposed by existing and new suppliers."
ABARE said because of the growing demand, there would have to be a large increase in the supply of LNG from Asia-Pacific countries.
It found Australia was well placed to supply additional LNG, with proposed projects worth almost 40 million tons.
If Australia brought all those projects onstream, it would eclipse other major suppliers including Indonesia, Malaysia, Qatar and Brunei.
"As with other projects in the region, Australia will face strong competition to secure markets in this timeframe, including competition from Indonesia, the Russian Federation and the Middle East," ABARE found.
"However, with LNG buyers taking price, flexibility, diversity, political security and reliability into account when making purchasing decisions, the outlook for the Australian LNG industry in the coming decade remains strong." (*)