Australian LNG investment remains strong – Government report
Investment in the LNG sector continues to lead investment in the Australian resources sector according to a new report.
The recently released “Resources and Energy Major Projects” report found that LNG projects continued to drive investment in Australia’s resource and energy sectors over the six months to October 2015, despite a slight fall in project value and progress. According to the report, LNG projects counted for around 88 per cent of the value of committed Australian resource projects in that period.
The report produced by the Australian Federal Government found that despite the fall in the price of oil and gas and the overall increase in supply of these commodities on world markets, three projects were advanced from the Publicly Announced to the Feasibility Stage (worth over $31 billion) between April and October 2015.
The report said that while no new LNG, oil and gas projects were added to the Publicly Announced Stage, the category maintains the largest share of projects at the Publicly Announced Stage – with three LNG, gas and oil projects at the Publicly Announced Stage with a combined value of $23 billion. This high value is underpinned by three offshore gas projects.
On a very positive front, the Resources and Energy Major Projects report found that there are 13 LNG, gas and oil projects at the Feasibility Stage worth $75 billion. This is six more projects than reported in April 2015 and the result of two new projects being added, three being moved up from the Publicly Announced Stage and one being downgraded from the Committed Stage.