Oil & Gas
Petroleum and Gas Refinery
Oil remained the largest primary energy source in Australia, at 38 per cent in 2013–14. Gas is Australia’s third largest energy resource after oil and coal, accounting for 24 per cent. 2 By the end of the decade, Australia should be home to ten operational LNG projects with a combined nameplate capacity of 86 million tonnes per annum (mtpa). This will put Australia on track to become the world’s largest exporter of LNG by the end of the decade.
Australia’s competitive position is underpinned by a strong economy, abundant resources, supportive government policies, mature trade links with key markets, and the participation of the world’s major oil and gas companies at all stages of the supply chain. Australia has substantial conventional gas resources. Australia’s proved and probable gas reserves stood at 126,000 petajoules, comprising 83,000 petajoules of conventional gas. Australia produced 2,460 petajoules of gas in 2014–15, of which 50 per cent was exported as liquefied natural gas (LNG).
Around 92 per cent of Australia’s conventional gas resources are located in the Carnarvon, Browse and Bonaparte basins off the coast of Western Australia and the Northern Territory. There are also resources in offshore basins along Australia’s southern margin as well as in onshore basins. The potential for additional commercial discoveries is large.
Australia is a reliable LNG producer offering investors a stable regulatory environment and proximity to the expanding Asian LNG market. Gas is a relatively flexible and clean fuel and is projected to be the fastest growing non-renewable energy source over the next twenty years.
The growing global demand for energy, led mainly by China and India over the past decade, coupled with the shift in energy transition has driven a strong increase in gas demand, particularly LNG due to its suitability for long-distance transportation. Australia’s geographic/geological positioning, ability to attract foreign investors/oil and gas majors and key Asian LNG buyers has enabled Australia to meet the various demands and emerge as one of the world’s largest LNG exporters.
Australia has a long history of oil and gas production. The ongoing development of its substantial reserves is strengthening the country’s position as a leading global player in the sector. Oil and gas exports are a major contributor to the Australian economy, earning A$23.2 billion in 2015.