The importance of Australian gas exports for energy security and emissions reductions has been highlighted, with warnings Australia must work to restore its reputation as a reliable investment partner to benefit from soaring LNG demand in the Asia-Pacific.
Rystad Energy has told the Australian Energy Producers Conference & Exhibition in Perth that LNG demand in Asia could almost double by 2032.
The independent research firm said Australian projects with their proximate location and legacy relationships remained attractive for Asian buyers.
The largest source of demand would be China followed by Southeast Asia and South Asia while legacy markets in Japan and Korea would still see new buyers emerge.
“We see LNG demand in the region increasing from 252 Mtpa in 2022 to 450 Mtpa by 2032,” Rystad Energy said.
Global energy consultancy Xodus told the Conference that the partnership between Japan and Australia strengthened Indo-Pacific political dynamics, bolstered energy security as well as advancing carbon capture utilisation and storage (CCUS) and low-carbon hydrogen development.
“A strategic partnership between Australia and Japan holds immense potential in advancing the energy transition in the Indo-Pacific,” Xodus said.
However, Xodus said the challenge remained for Australia to ensure it is seen as a reliable investment partner amidst recent Government interventions.
Australian Energy Producers Chief Executive Samantha McCulloch said LNG was a key economic and emission reduction opportunity given the plethora of strong Asian demand forecasts.
“New export projects are critical in delivering economic benefits such as the estimated $17 billion of government receipts this financial year and $41 billion of industry spending in Australia,” she said.
“Our LNG can also reduce emissions in importing nations by enabling the switch from other fuels.”
