Aust LNG could ‘triple’

 AUSTRALIA’S liquefied natural gas (LNG) exports could triple years to an annual value of over A$50 billion (K102bn) by 2020, according to a new ANZ study published yesterday.

The study stated that would happen as production from new fields comes on stream, lifting gross domestic product growth and restoring a positive balance of trade. 

The report Australia’s gas industry: When markets collide predicted rising international gas prices over this period due to increasing LNG usage in Asia, which the bank (ANZ) estimated could grow by over 40 per cent in the next decade on rising clean energy demand and consumption increases. 

ANZ expected LNG would overtake iron ore as key driver in Australia’s exports by end of next year, with significant long-lasting benefits for Australian economy including higher taxation receipts, petroleum resource rent taxes and state royalties. 

Australian shareholders would also benefit from higher dividend payments from LNG companies. 

The report highlighted that ambitious export commitments from new projects could strain domestic supply. 

Current low LNG prices and regulatory concerns around coal seam gas are curbing development of additional capacity, potentially exacerbating a supply shortage. 

If supply issues were not addressed, there would be a risk of Australian wholesale prices doubling in next two years which would add an average 30 per cent to household gas bills.