Reserve Bank forecasts LNG boom to `rival iron ore and coal'...

Reserve Bank forecasts LNG boom to `rival iron ore and coal' Scott Murdoch From: The Australian September 16, 2011 12:00AM

THE Reserve Bank has forecast Australia's liquified natural gas sales could triple in the next five years, putting the industry on par with iron ore and coal in terms of export contributions to the economy.
In the central bank's quarterly bulletin published yesterday, the RBA said there was $120 billion worth of LNG investment projects currently under way which would develop the industry over the next few years.

The bank said the global trade of LNG had more than doubled in the past decade, which was the result of the industry's technological advancements and the shoring up of reserves.

Australia is ranked third in terms of Asia-Pacific LNG production, supplying nearly 10 per cent of the total world's exports.

Qatar is the world's largest LNG producer, with exports of more than 25 per cent. However, it has a moratorium on more development on its main gas fields in a bid to extend the life of the reservoir. Australia has the second-highest rate of investment in the world in a push to increase its production capacity.

"Australia has emerged as the major centre for investment in LNG production," the submission said.

"New capacity equivalent to nearly one-third of global trade is currently under construction of which around two-thirds is located in Australia.

"If the projects under way proceed as planned, Australia would become the world's second-largest LNG exporter in the next few years."

The RBA said the increased level of investment in Australian LNG reserves was closely linked to the nation's ties with Asia.

"Australia's gas reserves are considerably smaller than the other regions. The nation's overall investment climate is rated as favourable by executives of major petroleum corporations," it said.

The central bank has forecast that if the pipeline of investment in current and developing LNG projects proceeds, the exports could soon rival Australia's traditional commodities.

"In addition to the committed projects, a number of other developments are being evaluated that could see LNG exports approach coal and iron ore in terms of their contribution to total export earnings over the next decade," the RBA said.
.