LNG Accounts for Bulk of Oz Resources Growth

The Australian government's Resources and Energy Quarterly Report published July 1 shows the key role liquefied natural gas (LNG) exports play in supporting Australia’s continued economic and jobs growth. It also brings benefits overseas, displacing dirtier fuels from power generation, according to upstream lobby group Australian Petroleum Production and Exploration Association (Appea).

According to the Department of Industry, Innovation and Science, the value of Australia’s resources and energy exports are estimated to have totalled a record A$275 (US$190)bn in 2018-19, mostly because of growing LNG exports.

In 2018-19, Australia’s LNG export earnings are estimated at A$49.7bn, an $18.8bn (61%) increase over the previous year – the largest increase of any commodity.

These results follow on from employment figures for the oil and gas industry which showed 3,800 new jobs have been created since February this year, equating to about a 17% rise.

Appea CEO Andrew McConville said the data showed the significance of LNG exports to sustaining Australia’s economic growth, maintaining living standards and supporting employment. “Australia’s LNG projects will deliver decades of economic growth, jobs and exports,” McConville said.

“The billions of dollars invested in these projects has also benefited the domestic market, which is now much larger.  The LNG industry is a very large supplier of domestic gas to the east coast gas market. The investment in LNG projects has significant flow-on benefits on the east coast and the west coast of Australia," he added.

The buyers of the LNG also benefit, as it helps to cuts carbon emissions in electricity generation, especially in large cities across Asia. LNG helps developing countries reduce air pollution, a major cause of millions of premature deaths, he said. The report may be read in full here.