Significant opportunities to bolster Australia’s position as one of the world’s largest LNG exporters through surging demand for Liquefied Natural Gas (LNG) was reinforced in the Global Resources Strategy Commodity Report: Liquefied Natural Gas, released during February 2022.
The report showcases Australia’s trio of export attractiveness built on our close proximity to Asia, sturdy regulatory and investment environment and underpinned by world-class energy resources.
Gas Taskforce Chair, Alister Trier says this is a very real opportunity for Australia, and particularly for the Territory.
“The Territory has all the ingredients to play a leading role in Australia’s LNG expansion plans with untapped proven gas reserves offshore, significant shale gas resource onshore and global recognition as an LNG exporter of choice.
Our fully established and globally significant LNG Export Hub is Australia's third largest producer, generating more than 20% of the Territory’s gross state product, said Mr Trier.”
The report recognises India and Bangladesh as major emerging LNG export markets. To pursue these markets the Australian Government has announced a new South Asian LNG Partnership to explore LNG trade and investment potential between Australia, India and Bangladesh.
Harnessing the Territory’s natural gas resources to secure new LNG export markets presents more than just increased revenue prospects. Territory gas, as a low-carbon energy source is also the launch pad for the emerging local sustainable gas-based processing and manufacturing sector.
“Incorporating the significant value-add opportunities of downstream gas-based processing and manufacturing projects will deliver substantial local employment opportunities, including service and supply and Aboriginal business opportunities,” says Mr Trier.
Research shows that seven times the number of local jobs are created when gas is used as a low-emissions feedstock for manufacturing, when compared with export alone.
Gas-based processing and manufacturing uses natural gas to create products such as fertilisers, explosives, paper, plastics and chemicals. This delivers everyday products such as bricks, glue, clothing, eyeglasses, phones, food wrapping, medicines and medical equipment like MRI machines and prostheses.
“We believe the highly prospective resources of the Beetaloo Sub-basin will allow us to service both export and manufacturing markets to harness maximum value from our abundant natural resources,” says Mr Trier.
One geological layer in the basin is estimated to contain 500 Trillion cubic feet of gas (P50 gas-in-place resource as estimated by industry), with estimated resources equivalent to 1,000 times Australia’s current annual domestic use.
“Capturing LNG export growth with new gas-based processing and manufacturing sectors will accelerate unprecedented multibillion dollar growth in the Territory economy and deliver benefits to regional, remote and urban Territorians for generations to come, said Mr Trier.”
Find out more about the Territory Gas Strategy initiatives to expand Darwin’s world scale LNG hub.