Page 5 - Oil&Gas-AustralAsia-2015-Issue-5
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The outlook for Gas still burning Bright

The current market conditions of low oil prices, cost cutting With recent market analysis focussing on the plummeting oil
and retracted exploration activity may be making the headlines, price, gas remains the fastest-growing fossil fuel in the world.
however a new report from the International Energy Agency Demand for natural gas will reach up to 5.2 trillion cubic metres
(IEA) shows Australia and the Asia Pacific region have much to over the next 20 to 25 years, bringing gas towards parity with
be positive about in the longer term. coal and oil in the global energy mix.
Forecasts from the IEA released in November state natural gas According to the IEA Australia is to become the main player
will be an indispensable part of the world’s energy mix in coming outside North America for unconventional gas resources, such
decades, with production of natural gas rising by an estimated as coal seam gas, as demand from China and the Middle East
47 per cent by 2040 from both conventional, unconventional and become the key regions for gas demand growth, with both
shale gas deposits. countries set to become larger consumers of natural gas than the
The IEA said in its annual World Energy Outlook there are good European Union.
reasons to be upbeat about the future of natural gas for its relative Australia will see significant growth of natural gas production
abundance, its environmental advantages compared with other to 2020 as seven LNG facilities come online, but prospects for a
fossil fuels, and its flexibility and adaptability make it a valuable second wave of projects have recently been dented by investment
component of a gradually decarbonising electricity and energy system. cutbacks.
Australian Petroleum Production and Exploration Association “In the short term lower-than-expected natural gas prices are
(APPEA) Chief Executive Malcolm Roberts said Australia has making it more challenging to make the case for new long-term
benefited hugely from rising demand for liquefied natural gas in investments in supply, however world natural gas production will
the Asia-Pacific region. not be derailed in the longer term,” the IEA report stated.
“More than $200 billion has been invested in LNG projects,
creating thousands of jobs, export income and new revenues for Mike Twiss
the Commonwealth and State governments. Australia will be the Publisher
world’s leading exporter of LNG by 2018,” Mr Roberts said.

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