Australian Energy Producers, representing Australia’s upstream oil and gas exploration and production industry, has called for the inclusion of liquefied natural gas (LNG) in the government’s future gas strategy, enabling the country to take advantage of its gas resources and augment them further.
According to Australian Energy Producers, the latest Resources and Energy Quarterly report has spotlighted the importance of Australia’s gas exports, showing tens of billions of dollars of economic benefits flowing in for Australians.
As a result, the oil and gas industry association underlines that the report shows why the Australian government should not miss the opportunity to continue being among Asia-Pacific’s top gas suppliers when it finalizes its Future Gas Strategy.
Samantha McCulloch, Australian Energy Producers’ Chief Executive, highlighted: “Australia’s oil and gas industry is committed to ensuring that our LNG exports deliver substantial returns to Australia while underpinning our domestic energy security. Our exports help governments build hospitals and schools and fund policies such as cost-of-living relief.”
Australian Energy Producers’ Chief Executive is convinced that LNG is still delivering substantial benefits, despite resource returns broadly declining after the recent peak of the cycle. In line with this, LNG exports hit a record $92 billion during the last financial year, helping deliver over $16 billion of taxation to governments.
In addition, the industry spent another $45 billion directly with Australian businesses. The latest report has found that LNG exports are forecast to total $72 billion this financial year. As there is a risk that the current pipeline of gas projects may become insufficient, the report noted there may be pressure on production in the future because gas exploration was low for the past five years.
“The Future Gas Strategy must recognise the critical roles of Australian gas in the decades to come –both domestically and in our region. New gas supply is critical for domestic and international markets where our valued customers rely on our energy and help support thousands of jobs and pay for public services and infrastructure in Australia,” added McCulloch.
According to a recent study, Australia will need substantial gas production in 2050 under all net zero scenarios, with as much as 130% of current output needed depending on the rate of renewables roll-out. In its 2024-25 pre-budget submission, Australian Energy Producers called for a plan that would enable Australia to avoid looming shortfalls while continuing to boost its efforts to deliver affordable and reliable energy for homes and businesses.
“Export returns like these show Australia must secure the opportunity of LNG, with Southeast Asia alone expected to increase LNG demand by a factor of 10 by 2050 under some IEA scenarios. Our exports also have the potential to reduce emissions by up to 166 million tones of carbon dioxide annually by helping importing nations switch away from higher-emitting fuels such as coal,” concluded McCulloch.
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