The Bureau of Resources and Energy Economics (BREE) has released a report that predicts national exports of liquefied natural gas (LNG) could more than triple to 63 million tonnes per annum by 2016-17.

 

The explosive growth predictions are the main findings of BREE’s inaugural Gas Market Report, released by Federal Minister for resources and Energy Martin Ferguson.

 

The report will be updated annually to provide an overview of the current state-of-play in the Australian gas market, as well as providing a snapshot of international developments in the market.

 

“Natural gas is increasingly the fuel of choice for developing economies because of its versatility and lower carbon emissions compared with other fossil fuels,” Mr Ferguson said.

 

“Australia is well positioned to take advantage of increased global LNG trade and is on track to become the world’s second largest exporter of LNG by as soon as 2015.

 

“BREE predicts Australian gas markets will change significantly in the short and long-term as a result of rising LNG production, particularly in eastern Australia.

 

“There are currently seven LNG projects under construction in Australia, including three at Gladstone in Queensland, which will see competition for domestically produced gas increase on the east coast.

 

The report further finds that while a tightening Eastern gas market is likely in the short to medium term, increased access to international markets and higher prices are likely to encourage the further development of resources and increase production over the medium to longer term. This, in turn, should moderate gas prices as supplies increase.

 

The full report can be found here (.pdf)