IBIS World tips coal seam gas, fast fashion to shine in 2015...

IBIS World tips coal seam gas, fast fashion to shine in 2015

EVEN as global crude oil prices have collapsed in the last few months, there may still be some good news to salvage for Australia’s energy sector this year.
The coal seam gas extraction industry is likely to be among the best performing in 2015, according to research firm IBIS World, as it moves from a construction to production phase.
Other Australian industries tipped to perform strongly in 2015 include online groceries, fast fashion and private equity, IBIS World analysts said in a new report.
It also identified electricity distribution, mining equipment makers and cigarette manufacturing as among the likely laggards for the year.


With the first of the Queensland liquefied natural gas plants starting export shipments this year, to be followed by two other plants, the coal seam gas extraction industry’s revenue is forecast to jump 148 per cent to $1.83 billion in 2015.
“While coal seam gas projects have become more viable due to new and improving extraction techniques, it is the development of export capabilities that is expected to drive rapid industry growth,” the report said.
Australian gas will meet strong demand in Japan, China and South Korea, the world’s three largest natural gas importers.
On the other hand, the petroleum exploration space is expected to contract this year, as lower oil prices make exploration projects less viable for Australian firms.
IBIS World analysts are forecasting a 19 per cent fall in revenue to $3.76bn, with Australian companies increasingly unable to compete with low production costs and high volumes from the world’s major oil producers.