Australian's energy strength on show at LNG18
11 April 2016
This week I will join the Prime Minister, the Hon Malcolm Turnbull MP, industry leaders and delegates from more than 95 countries in Perth for the 18th International Conference & Exhibition on Liquefied Natural Gas (LNG18).
LNG18 is the world’s leading international liquefied natural gas (LNG) forum and takes place every three years. This year, the forum provides a timely opportunity to discuss the outlook for the LNG sector and opportunities for continued future growth, while also discussing ways to navigate current challenges, including softening global commodity prices.
Australia is the ideal host for this forum as we are expected to become the world’s largest LNG exporter by 2020. Further, with Western Australia to be home to half of Australia’s 10 LNG plants, it is fitting that Perth will welcome some 6,000 participants from around the world. Perth previously hosted the forum in 1998.
Although the sector is currently facing challenges, it is important to remember that its fundamentals remain strong. Over the next five years, an estimated 455 million people, equal to the current populations of the United States and Japan, will move from regions to cities helping to fuel increased energy demand. Further, India’s electricity use per person is still lower than the African average. This will change through continued economic development. In fact, the International Energy Agency forecasts global gas demand to increase by around 50 per cent between now and 2040.
With established projects, our reputation as a reliable supplier, and proximity to key markets, Australia is well placed to take advantage of this increased demand. As a result, the volume of our LNG exports is expected to triple to 75 million tonnes by 2020-21, be worth around $42 billion in 2015-16 real terms, and supply around 40 per cent of both Japan and China’s LNG needs and 25 per cent of Korea’s.
Throughout the forum, I will highlight these strengths and Australia’s continued investment potential. I will also continue to emphasise the focus on innovation in Australia’s resources and energy sector, which accounts for around 15 per cent of all business research and development spending.
The Government remains committed to working closely with industry to promote this important Australian sector and to further enhance the competitiveness of our resources and energy sector to secure the next wave of investment.
Media contact: Mr Frydenberg's office 02 6277 7180
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