LNG production picks up around Australia
While some natural commodities have waned off in Australia, liquefied natural gas is still presenting growth opportunities.
The LNG industry accounts for $60 billion in annual export revenue in Queensland.
In Queensland, oil and gas company Santos has commenced production of liquefied natural gas (LNG) on Curtis Island and is expected to contribute significantly to economic growth, including opportunities for more gas industry jobs.
"Queensland's LNG industry is ramping up, having already exported $1.14 billion worth of gas from January to July," said Acting State Treasurer Kate Jones.
"Exports are projected to hit $15 billion by 2016-17, earning the state valuable export dollars and annual royalties while supporting thousands of jobs."
As well as a new plant on Curtis Island (which will produce 7.8 million tonnes per year), Santos also oversaw the construction of a 420-kilometre gas transmission pipeline. This will connect Surat and Bowen Basins to Gladstone, creating an efficient path for exports.
Addressing future challenges in the East
While the Queensland Government has high hopes for LNG, Australian Petroleum Production & Exploration Association (APPEA) Chief Executive Malcolm Roberts stated that there are still some challenges for the overall market in terms of regulation.
Mr Roberts explained that this factor is currently presenting the largest barrier to further growth and that government policy is creating an "artificial shortage".
"Without the stimulus of LNG exports, we would not have seen the massive investment in unlocking unconventional reserves and upgrading infrastructure which all of our customers need," he stated.
Despite potential regulatory restrictions, the APPEA also highlighted a number of positive factors for the gas industry. These included a high number of gas supply agreements, the entry of smaller companies into the market and a significant amount of LNG investment.
Supply base boosts exports in the Northern Territory
Queensland isn't the only state that has a positive outlook for LNG exports. The Northern Territory Government recently announced that national port and logistics company Qube has opened a new supply base in Darwin. The warehouse in the East Arm industrial precinct cost over $14 million to build and can host 4,000 bays of pallet racking as well as a large cool room and office facilities.
Chief Minister Adam Giles was confident that the new supply facility will help solidify Darwin's reputation as a world leader in oil and gas logistics.