LNG has boomed to become one of Australia’s most lucrative exports– but its long-term future is less certain.Credit:Glenn Campbell
It marks the first year-on-year drop in LNG output since 2015,when production began ramping up on the back of investments in huge LNG export ventures involving ASX-listed Woodside and Santos,and global operators such as Shell and Chevron. By 2020,Australia’s LNG shipments had surpassed those from the United States and Qatar.
However,existing oil and gas fields across Australia are drying up due to natural declines,and a limited pipeline of new fields being developed means production has likely peaked.
EnergyQuest chief executive Rick Wilkinson said low levels of investment in further exploration meant there were insufficient new sources of supply to fill the gap.
Loading
“Since the Albanese government came to power,no offshore exploration acreage has been awarded – the latest acreage release was for 2022,with bids closing on March 2,2023,” Wilkinson said.
“Those bids are still under consideration … there was no 2023 round at all,and it remains to be seen whether 2024 will see a release.”
While Australia’s LNG boom has benefited gas companies and is still delivering tens of billions of dollars in yearly export revenue,the growth of the industry has become a cause of significant environmental concerns because it is a key source of greenhouse gas emissions,including carbon dioxide and methane,which scientists warn must be urgently reduced to combat the worst impacts of global warming.