As 2018 draws to a close, today’s Resources and Energy Quarterly December 2018 confirms that liquefied natural gas (LNG) exports are vital to Australia’s economic growth and play an important role in reducing CO2 emissions globally.
The value of Australia’s resources and energy exports is forecast to increase to a record $264 billion in 2018-19 thanks in part to rapidly growing LNG export volumes, according to the figures released by the Department of Industry, Innovation and Science.
Australia’s LNG export earnings have been revised upwards for 2018-19 and are forecast to total $50.4 billion, an increase of nearly 60 per cent compared to 2017-18, overtaking metallurgical coal as Australia’s second largest resources and energy export.
APPEA Chief Executive Dr Malcolm Roberts said the data reinforced how critical LNG exports are to sustaining Australia’s economic growth.
“Australia’s LNG projects will deliver decades of economic growth, jobs and exports. These national benefits aside, LNG exports have regional and global environmental benefits,” Dr Roberts said.
“When used to replace coal, LNG cuts emissions. LNG also helps developing countries to reduce air pollution, a major cause of millions of premature deaths.”
According to recent government estimates, Australian LNG exports are reducing emissions by at least 130 million tonnes in our customer nations – equivalent to almost a quarter of Australia’s emissions. Australian LNG is doing its bit in addressing the global problem of climate change.
However, the benefits of a growing LNG industry cannot be taken for granted. Looking forward to 2019 and beyond, Australia faces intense competition from established and emerging low-cost producers in the global market, particularly the United States, which is expected to triple its LNG capacity by 2020 to total 70 million tonnes.