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Battle lines drawn over Australian gas crisis
The petrochemical sector is lobbying the government to consider its needs ahead of those of the natural gas export sector
COMMENTARY
WHAT:
Chemistry Australia claims gas-based manufacturers add more value to gas production than LNG exports.
WHY:
The body wants the government to introduce measures to reduce gas prices.
WHAT NEXT:
APPEA has slammed the claim, but manufacturers have a great deal to gain by doubling down on this position.
AUSTRALIA is on track to become the largest exporter of liqui ed natural gas (LNG) over the next year, eclipsing Qatar in the process. As it does so, the battle at home between exporters and consumers is heating up, with industrial bodies on both sides of the divide ring warning shots at the other.
Australia’s LNG export capacity has increased from 2.6bn cubic feet (73.63mn cubic metres) per day (20.32mn tonnes per year) in 2011 to more than 11.4 bcf (322.85 mcm) per day (89.09mn tpy), according to data from the Australian Department of Industry, Innovation and Science (DIIS).
Consultancy EnergyQuest estimates that Aus- tralian LNG exports in nancial year 2018-2019 climbed by 21.2% on the year to 75.1mn tonnes; Qatar has a nameplate capacity of 77mn tpy.
While Australian exports only surpassed Qatari shipments in November 2018 and April this year, this is set to change when a number of recently commissioned projects – such as Wheatstone, Ichthys and Prelude Floating LNG (FLNG) – reach full capacity.
e DIIS has forecast that exports will grow to a consistent 10.8 bcf (305.86 mcm) per day (84.4mn tpy) by nancial year 2020-2021. is expansion, however, is only set deepen tensions within the domestic natural gas market. Austral- ia’s rise as an LNG power has driven up gas prices at home, causing industrial consumers to exert mounting pressure on the central government to introduce measures to rein in in ation.
A question of importance
e Australian petrochemical industry has released a new report to highlight the economic bene ts of gas-based manufacturing, noting that the sector adds more value to the economy than LNG.
Chemistry Australia’s report, the Chemi- cal Sector Economic Contribution Analysis, highlights the sector’s importance to the wider economy and warns of the fallout should prices remain unchecked.
Chemistry Australia CEO Samantha Read said the petrochemical sector contributed A$38bn ($25.78bn) to Australian GDP and
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w w w . N E W S B A S E . c o m Week 32 14•August•2019