With the east coast liquefied natural gas (LNG) exporters hauled into Canberra and told to claw back some of their designated export sales to supply the hard-pressed domestic market, it’s time to take a look at the sector – given that markets don’t like government intervention.
LNG remains a huge success story for Australia, with LNG exports almost 2.5 times the volume of national domestic gas production in FY17, according to independent energy consultancy EnergyQuest. FY17 marked a major shift in the petroleum industry, as the LNG investment boom moved deeper into its production phase.
Much scrutiny has fallen recently on the three coal seam gas (CSG)-to-LNG export plants at Gladstone, where $70 billion has been spent to develop an export industry. The three projects are: