FOREWORD BY THE HON. IAN MACFARLANE MP, MINISTER FOR INDUSTRY
Australia’s resources and energy commodities continue to supply a global energy market that shows little sign of abating.
Australia stands on the cusp of an unprecedented period of expansion where our liquefied natural gas (LNG) production will more than triple over the next five years.
The seven projects currently under construction translate to two thirds of the current global investment underway in LNG production.
The gas industry is investing close to $200 billion dollars into building this new production capacity – a truly staggering figure. Much of this investment is occurring in rural and regional Australia and is creating thousands of new Australian jobs.
While this translates into increased activity for the pipeline sector and its suppliers, the industry is also breathing new life into many regional towns and communities.
State, territory and local governments are benefiting from new revenue streams to build the schools, roads and hospitals that communities require and deliver the services which communities need and deserve.
As production commences from these projects, LNG will further cement its place as one of Australia’s principal exports.
The Australian Government’s Energy Green Paper notes Australia’s LNG exports are forecast to grow rapidly as projects come online progressively from 2014.
By 2018, Australia’s liquefaction capacity will be approximately 86 million tonnes per annum, with LNG export value forecast to grow from $14.5 billion in 2012–13 to reach over $60 billion in 2017–18.
However, there are challenges ahead.
The Australian Government is working with industry on a range of measures to ensure the ongoing competitiveness of Australian LNG projects and enabling the development of supply to meet demand.
This includes regulatory reform and streamlining environmental approvals, ongoing gas market development, improving market transparency and competition, workforce productivity measures and skills and migration initiatives.
The Government is determined to ensure that coal seam gas projects can proceed with appropriate environmental controls and community consultation.
Slow approval processes and red tape are still hindering the development of our eastern market’s gas supply, potentially compromising our energy security and our ability to secure new investment in supply.
The Government is working with industry and the States to remove barriers and find a balance between developing our energy resources and environmental safeguards.
This work will continue to be challenging and I look forward to working with the pipeline industry, and other key stakeholders, to grow the industry and provide maximum benefits for Australians and for Australia.
Hon Ian Macfarlane MP
Minister for Industry
The Hon. Ian Macfarlane MP.