The International Energy Agency’s (IEA) forecast that natural gas will increase its share of the global energy mix in coming decades is great news for Australia, according to the Australian Petroleum Production and Exploration Association (APPEA).
APPEA Chief Executive Dr Malcolm Roberts said the IEA’s latest World Energy Outlook highlighted an enormous economic opportunity right on Australia’s doorstep.
“The IEA is forecasting demand for natural gas will increase by 45 per cent by 2040, increasing its share of global energy demand from 22 per cent today to 25 per cent,”? said Dr Roberts.
“The IEA also expects LNG exports will eventually overtake pipeline gas as the main form of long-distance trading, accounting for 60 per cent of inter-regional trade by 2040.
“This is great news for Australia; our $200 billion investment in LNG projects will supply a growing global market over the next 25 years.
“Most of the growing demand for natural gas is expected to come from China, India and other countries in Asia that have significant concerns over air quality.
Dr Roberts said the IEA report also highlighted a major challenge for Australia, with the United States expected to become the world’s leading LNG exporter by the mid 2020s.
“The opportunity for Australia is huge but our competitors are hungry – in an extremely competitive global market, we cannot be complacent,”? said Dr Roberts.
“If Australia is to capture further investment in LNG production, it is vital we get the policy settings right by maintaining a stable and competitive tax regime and reducing regulatory costs.”?