New research shows the LNG industry could grow Australia’s GDP by almost 3% from 2013 levels by 2020
A new report titled “Ready or Not? Creating a world-leading oil and gas industry in Australia,” found that the liquefied natural gas (LNG) industry in Australia could become the world’s largest and most technologically advanced, contributing more than AUD$55 billion (USD$44.03 billion) to the country’s GDP in 2020. That represents almost 3% growth from Australia’s 2013 GDP of USD$1.56 trillion.
The report, conducted by Accenture, found that over the next five years Australia’s natural gas production will increase by more than 90%, the number of wells in production will increase by 400% and pipeline infrastructure in Australia will increase by 45%. Total cumulative capital investment and operating expense will reach around AUD$360 billion (USD$288.13 billion) by 2020, 40% more than the AUD$250 billion (USD$200.09 billion) invested during the recent capital investment boom, according to a press release from Accenture.
Accenture interviewed LNG operators and the companies that service them in order to assess the country’s readiness to build out its LNG assets. The report concluded that in order for Australia to secure its place as the world’s leading LNG producer and derive the associated benefits, there is a need to improve international competitiveness, remove regulatory constraints and introduce a more flexible labor relations regime.
“If operators, the service sector and government can work together to get the transition right, we estimate the industry could collectively realize an additional AUD$50 – $70 billion of shareholder value over the next 25 years – and this will have a positive impact on the whole economy,” said Bernadette Cullinane, Asia Pacific managing director for Accenture’s energy industry group. “The speed and scope of the transition is unprecedented. The industry must be ready to support and maintain safe, efficient and reliable operations for the next 40 years.”
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