With abundant supplies of natural gas, Australia is ranked second as the world’s largest exporter of liquefied natural gas (LNG). By 2019, it should knock Qatar out of the top spot to become the largest. With this abundant supply—and equally abundant exports—Australian domestic natural gas prices are at all time highs.
Most of the LNG exports are from eastern Australia (where TAG Oil’s PL17 is located); in 2016 they accounted for 43% of Australia’s LNG exports. In early 2017, long-term contracts (which are tied to oil prices) with importers such as Japan caused domestic natural gas prices to rise higher than the export prices.
Australia will need to continue expanding their already growing network of natural gas pipelines and natural gas storage infrastructure, as LNG projects and exports continue to rise. TAG Oil looks forward to the day when we’re making use of that infrastructure to transport our PL17 gas!
To read more comprehensive article on Australia’s domestic gas and LNG exports click here.