Regional LNG: Australian LNG export to surge next year

Australian LNG export sales may surge by 22 percent next fiscal year, thanks to the start-up of new plants to meet rising demand for the fuel in Asia, the government's commodities forecaster said.

The value of LNG exports is forecast to rise to US$4.5 billion in the year ending June 30, 2007, after a forecast 56 percent jump this year, the Australian Bureau of Agricultural and Resource Economics said Tuesday in a report.

The $3.6 billion ConocoPhillips-led Bayu-Undan LNG venture started shipping LNG to Japan from its Darwin plant this quarter, while the Woodside Petroleum Ltd.-operated North West Shelf venture is due to start LNG shipments to China in April from its expanded plant in Western Australia. Woodside, Royal Dutch Shell Plc and BHP Billiton are also among companies seeking to export LNG from Australia to buyers in North America.

``Australian LNG exports are projected to increase significantly over the outlook period, supported by growth in both existing and new markets, such as China and the north American west coast,'' the bureau said in the report.

The value of Australia's LNG exports is expected to jump 127 percent in the six years ending June 30, 2011, to A$7.3 billion, the bureau estimates.(*)