Australia Liquified Natural Gas Market is anticipated to grow at
a steady pace in the forecast period 2024-2028
& growing at a solid CAGR in the forecast period. In the upcoming years,
the market's expansion is projected to be fueled by the rising demand for
electric power generated by renewable energy sources. During the next eight
years, market growth is predicted to be aided by an increasing focus on
projects involving distributed power & utilities.
A fossil fuel developed deep underneath the earth's
crust is natural gas. Several substances are present in natural gas. The main component of natural gas is
methane (CH4), a molecule with one carbon atom and four hydrogen atoms. Natural
gas that has been chilled to a liquid form, at around -260° Fahrenheit
(161° Celsius), for transportation and storage, is known as liquefied natural
gas (LNG). Natural gas's volume in the liquid form is around 600 times less
than that in the gaseous state. Natural gas may now be delivered to locations
that pipelines are unable to reach. Liquid natural gas has several benefits,
such as being energy-efficient, cleaner fuel, reducing emissions, and having a
range of uses, such as fuel for home kitchen appliances, fuel for the
fertiliser industry, and fuel for the transportation sector, among others.
Economic Feasibility of LNG
High cost of
liquefaction: The market for LNG has been constrained despite its
potential for export because of the high cost of liquefaction and production.
Losses: During the liquefaction process, 10% to 25% of the
gas's energy is lost.
Costly Transport: Energy-intensive operations include chilling,
liquefaction, transport, post-transport regasification, and more.
Impact on Liquified Natural Gas (LNG) by Climate
Emission: According to one estimate, LNG produces
approximately ten times as much emissions as piped gas, thus its quick
development is capable of damaging climate goals.
Risks of methane leakages: The high emissions from LNG are also attributed to
methane loss along the supply chain.
Huge carbon
equivalence: Liquefied Natural Gas emits 50 times more carbon
dioxide than wind power and 14 times more carbon dioxide than solar power when
producing the same amount of electricity.
Strong Demand in Asia Pacific Countries.
Between 2018 and 2023, more than 100 billion cubic
metres of additional LNG supply capacity will be installed, with most of these
increases coming from Australia and the United States. Mostly by Asian
importers, this wave of additional liquefaction capacity has so far been
absorbed without any indication of impending surplus. Its growth has been
significantly influenced by markets, both slow-growing and fast-growing.
The Asia -Pacific regional market is replacing local,
bilateral trading flows as the primary market for LNG trade. While the
Asia-Pacific area is predicted to continue to have the majority of the world's
LNG consumption, the trend towards more country diversity is projected to
continue. To fulfil the rising demand coming from the Asian
Pacific region, new and existing suppliers launched additional
liquefaction projects in the United States and Australia regions.
Growing
Demands for LNG in the Country
The government's emphasis on using clean energy in the
residential and commercial sectors to reduce the impacts of pollution
nationwide is likely to increase the demand for natural gas in the upcoming years.
Australia has recently made significant expenditures in the growth of its
infrastructure. For instance, the recently finished T20 World Cup 2022 and the
impending real estate Expo event are the country's biggest infrastructure
developments at a time when demand for renewable energy is anticipated to
increase nationwide. Innovation and teamwork are still key to the
sector's success as Australia emerges as the country that exports the most LNG
globally, with over USD 135 billion in new and ongoing projects. Furthermore,
this is the first time in Australian history that a national plan has suggested
making a long-term investment in smaller regions. These local expenditures are
anticipated to have a significant influence on the nation's total income and
capacity to remain competitive in the current smart market. Some of Australia's
greatest metropolitan cities, including Karratha and Townsville, is expected
to implement the concept. These cities have a combined population of more
than four million, making the influence of innovation significant. The effort
is expected to encompass both rural and nearby communities, in addition to
metropolitan regions. Regional capital cities in Australia are expanding
considerably more quickly than the country as a whole and more smart city
elements are being implemented to improve the quality of life and promote
sustainability through natural gas usage.
Liquified Natural Gas Supply Outlook
Up to 2050, the expansion of LNG trade is
anticipated to be fueled by the continued development in LNG demand in Asian
nations. Global LNG export capacity was about 450 million tonnes annually by
the end of 2020 (Mtpa). By the middle of the 2030s, previously authorized and under-construction
projects will have increased worldwide capacity by 125 Mtpa. The top LNG
exporters in 2020 were Australia and Qatar, who each accounted for around 22%
of worldwide LNG shipments. For the last ten years, Australia's rivals have
routinely made significant investment choices. Before 2012, Australia granted final investment
decisions (FIDs) for LNG projects worth more than USD 200 billion. Since then,
the only LNG capacity project to attain FID is Woodside's Scarborough project
(in November 2021). Without more funding for upstream infrastructure and new
LNG trains, Australia risked losing its position as a major LNG producer in the
upcoming years.
Factors Responsible for Australia to Remain a
Major LNG Exporter:
Geographical Proximity to Asia
The Asian markets, which are expected to continue to
fuel the rise of the LNG demand over the upcoming years, are very conveniently
placed just outside Australia's doorstep. Australian LNG has maintained its
share of the demand from long-standing clients including Japan and Korea
and reaped major rewards from China's emergence as a big LNG importer. Australian
LNG imports to China have increased five-fold over the past five years,
becoming China Australia's largest LNG client. Australia benefits from sharing its regions with
other emerging LNG importers including Bangladesh, India, and the ASEAN
countries. Australia is in a good position to benefit from the
opportunity presented by above-mentioned countries' development and demand
for greener energy.
Stable Investment Destination
Australian operations, environmental standards,
taxation laws, and regulatory approval procedures for LNG plants, are all
governed by well-established regulatory frameworks, gifted with top-notch
natural gas resources as well. Because of its stability, Australia is a good
place to invest in LNG. With the focus of international oil and gas companies
shifting to smaller, incremental projects in established gas basins rather than
the greenfield mega-projects that have characterised the past few decades, it's
going to be essential to maintain and improve Australia's competitiveness as an
investment destination as well as a stable regulatory and risk regime to see if
Australia continues to attract investments.
Recent Developments
The government is expected to spend at least USD 21 billion on the upcoming generation of low emissions technologies under the Technological Investment Roadmap in the ten years leading up to 2030, generating over USD 84 billion in total public and private investment. According to Australia's comparative advantage, potential economic gain, and government power to be effective, the Road Map prioritises technologies based on their potential to reduce emissions.
Quad working together on methane abatement in the natural gas sector - The presidents of the Quad nations—the US, Australia, India, and Japan, announced on September 24, 2021, that they were going to cooperate, to lower the methane emissions from the natural gas industry.
Japan-Australia Partnership on Decarbonization Through Technology - In July 2021, Japan and Australia agreed to work together to promote projects that would help achieve net zero emissions, such as lower emissions LNG production, transport, and usage, clean fuel ammonia, clean hydrogen, and carbon capture and storage.
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Market Segmentation
The Australia Liquified Natural Gas Market
is divided into LNG Infrastructure, Application and Mode of Supply. Based on LNG
infrastructure, the market is segmented into LNG Liquefaction Plants, LNG Regasification
Facilities, and LNG Shipping. Based on application, the market is segmented
into transpiration fuel, power generation, and others. Based on mode of supply,
the market is segmented into trucks, pipelines, and marine.
Market Players
Major
market players in the Australia
Liquified Natural Gas Market are Shell Australia Pty Limited, BHP Group
Limited, Woodside Energy Group Ltd, Santos Limited, Origin Energy Limited, AGL
Energy Ltd, Beach Energy Limited, Ampol Australia Petroleum Pty Ltd, Japan Australia
LNG Pty Ltd, Chevron Australia Pty. Ltd.
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Attribute
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Details
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Base Year
|
2022
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Historic Data
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2018–
2021
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Estimated Year
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2023
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Forecast Period
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2024
– 2028
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Quantitative Units
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Revenue in USD Million, and CAGR for 2018-2022 and 2024-2028
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Report Coverage
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Revenue
forecast, company share, growth factors, and trends
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Segments Covered
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LNG Infrastructure
Application
Mode of Supply
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|
Regional scope
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Australia
Capital Territory & New South Wales, Victoria & Tasmania, Queensland,
Northern Territory & Southern Australia, Western Australia
|
|
Key companies profiled
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Shell Australia Pty Limited, BHP Group Limited, Woodside
Energy Group Ltd, Santos Limited, Origin Energy Limited, AGL Energy Ltd,
Beach Energy Limited, Ampol Australia Petroleum Pty Ltd, Japan Australia LNG
Pty Ltd, Chevron Australia Pty. Ltd.
|
|
Customization scope
|
10%
free report customization with purchase. Addition or alteration to country,
regional & segment scope.
|
|
Pricing and purchase options
|
Avail customized purchase options to meet your exact research
needs. Explore purchase options
|
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Delivery Format
|
PDF
and Excel through Email (We can also provide the editable version of the
report in PPT/Word format on special request)
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Report Scope:
In this report, the Australia Liquified Natural Gas Market has
been segmented into the following categories, in addition to the industry
trends which have also been detailed below:
·
Australia
Liquified Natural Gas Market, By LNG Infrastructure:
o LNG Liquefaction Plants
o LNG Regasification Facilities
o LNG Shipping
·
Australia Liquified Natural Gas Market, By Application:
o
Transpiration Fuel
o
Power Generation
o
Others
·
Australia
Liquified Natural Gas Market, By Mode of Supply:
o
Trucks
o
Pipeline
o
Marine
·
Australia
Liquified Natural Gas Market, By Region:
o
Australia Capital
Territory & New South Wales,
o
Victoria &
Tasmania,
o
Queensland,
o
Northern Territory
& Southern Australia,
o
Western Australia
Competitive Landscape
Company
Profiles: Detailed
analysis of the major companies present in the Australia Liquified Natural Gas Market.
Available Customizations:
TechSci Research offers customizations
according to a company's specific needs. The following customization options
are available for the report:
Company Information
- Detailed analysis and profiling of additional market players (up to
five).
Australia Liquified Natural Gas Market is an upcoming report to be released
soon. If you wish an early delivery of this report or want to confirm the date
of release, please contact us at [email protected]