What Role Does LNG Play in Queensland’s Energy Supply?

What role does LNG play in Queensland's energy supply

LNG production is increasing across Australia.

Energy production continues to diversify across Australia as more companies seek the benefits of renewable energy such as solar power systems. Another option that is rising in popularity is liquefied natural gas (LNG) which, according to the Australian government, is widely known as a safe, convenient and clean form of energy.

Moreover, liquefying natural gas allows its size to be greatly reduced, making transportation much easier. As such, it is unsurprising that Australia is increasing its production of LNG. One of the developments in the gas industry is Queensland’s Curtis Island plant, which became operational in 2014.

LNG a key contributor to the economy

Australia Pacific LNG announced in early January that the first shipment of LNG has been successfully delivered from its plant on Curtis Island in Queensland. This reflects the growing role that LNG is playing in Australia’s overall energy supply.

According to the Department of Industry, Innovation and Science, Australia is the third-largest exporter of LNG in the Asia-Pacific region, and the fourth-leading exporter worldwide. In 2011, 18.9 million tonnes were exported – at a value of approximately $11 billion.

With Queensland projects such as Australia Pacific LNG’s Curtis Island operational from 2014, the volume is expected to be significantly higher.

The announcement was welcomed by the Queensland Resources Council (QRC), with QRC Chief Executive Michael Roche noting that it was a “major milestone” for those involved. Moreover, Mr Roche stated the important role that the gas industry is playing in boosting the state’s economy.

According to QRC, the oil and gas industry contributed five per cent of all jobs in Queensland in 2014-15 and provided seven per cent of Queensland’s regional product.

“Today’s shipment signifies a vital and growing export pillar for Queensland’s economy, with the gas sector expected to deliver nearly half a billion dollars in royalties in 2018-19. As organisations such as Australia Pacific LNG continue to achieve these significant milestones, Australia will remain on track to become the world’s leading exporter of natural gas by 2020,” added Mr Roche.

Global demand for LNG rising

QRC underscored research from the International Energy Agency (IEA)which indicated that demand for natural gas could increase by 160 per cent in Asia.

The 2015 report, World Energy Outlook, stated that natural gas is rapidly growing due to a 50 per cent consumption rise, driven by high demand in China and the Middle East.

Furthermore, the IEA stated that policy is being increasingly geared toward lower carbon options. This is due to non-renewables such as oil and gas becoming more expensive while renewable energy technologies are becoming more cost-effective, according to IEA’s report.

The experts at MPower can help match energy solutions with offshore gas facilities. Contact the team today for advice on your next project.


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