Australia planning to import LNG: What's next? Coals to Newcastle?

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Australia planning to import LNG: What's next? Coals to Newcastle?
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Australia is on the verge of becoming the biggest exporter of liquefied natural ...

MELBOURNE - Australia is on the verge of becoming the biggest exporter of liquefied natural gas, with dozens of tankers a week carrying fuel to North Asia. It could also soon be importing LNG as supply sources in its southern states run out.

Piping gas from Queensland in northern Australia to southern markets is expensive, making LNG imports potentially viable. “We definitely would see a rationale for one terminal to give another source of gas into the east coast market,” said Nicholas Browne, Asia gas and LNG director at consultancy Wood Mackenzie. “We think one terminal would be sufficient till the mid to late 2020s.”

“We aim to provide a cost-efficient infrastructure solution in markets that are in need of gas,” said EPIK founder Jee Yoon. Its infrastructure and experience selling into the southeastern market put it in a unique position, said Exxon Mobil Australia Chairman Richard Owen. “We think there’s a significant shortfall of gas in the domestic market,” said AIE Chief Executive James Baulderstone.

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