Australia should in the long term benefit from the growing gas demand of emerging economies in the Asian region, a report says.
According to a Gas Market Report 2015 issued on Friday by the Australian chief economist of the department of industry, innovation and science, despite the challenges, such as the current downward pressure on commodity prices, the fundamentals remain strong for the gas sector.
International Energy Agency predicts that the global demand for gas will jump 50 percent by 2040. Gas consumption in China is predicted to double by 2030, while LNG demand in India is expected to double by 2019-2020.
The report shows that Australia is expected to provide 40 percent of Japan’s as well as China’s LNG demand by 2019-2020. It could also provide 25 percent of South Korea’s LNG demand by 2019-2020.
With the rising demand, LNG exports are set to grow, with resource export earning to reach A$45 billion by 2019-2020, when Australia is expected to outstrip Qatar as the world’s largest LNG exporter.
However, the report reveals that Australia’s domestic market is facing struggles, especially the eastern market that requires additional supply.
LNG World News Staff