Australia could be the world leader in exporting liquefied natural gas (LNG) within the next decade, a new report claims.
Peter Kiernan, Lead Analyst in Energy at the Economist Intelligence Unit (EIU) told ELN the country could have around 85million tonnes of LNG capacity by 2020.
The EIU’s new report looked at the potential growth in the sector in the next decade and the future for Australia as an LNG exporter.
The comment comes despite news surrounding the rise in costs that could threaten LNG projects in Australia. Mr Kiernan said: “While cost escalation may cause delays to the completion of projects, Australia is still well-positioned to make an impact on global LNG supply in the coming years.”
Australia is currently the fourth largest exporter of LNG in the world, led by Qatar, Malaysia and Indonesia.
In an interview with ELN, Mr Kiernan said: “Over the next five to eight years or so, Australia will show by far it is the largest liquefied natural gas exporter. There are seven projects under construction, with a total capacity of 61.3million tonnes. Currently Australia has a capacity of 24.3million tonnes.”
The world demand for LNG increased after last year’s Fukushima disaster when Japan rapidly increased imports of gas after its nuclear production virtually ground to a halt.