Tens of billions of dollars from Australia’s coal and gas exports could be wiped out in as little as two years as prices keep tumbling.
Australia’s coal and natural gas shippers are bracing for a significant hit to their revenue in the next two years as sliding demand and prices for fossil fuel exports threaten to wipe out nearly $30 billion of combined earnings.
Cargoes of LNG, which is gas that has been super-chilled down to a liquid so it can be transported on giant ships, are on track to fall from $69 billion to $60 billion by 2025-26 as commodity prices remain under pressure. The forecasts say the global LNG market risks flipping into oversupply from 2025 once vast new sources from elsewhere in the world come online.
Combined, the earnings declines from Australian coal and LNG could amount to $29 billion, as prices continue retreating from the unseen highs of 2022-23, when the war in Ukraine caused a scramble for fuels to keep the lights on in parts of Europe and Asia, sending prices skyrocketing.
However, King said Monday’s forecasts also underlined the ongoing importance of the commodities to the nation’s economic prosperity. However, prices for the commodity have fallen sharply amid a slowdown in electric vehicle sales. Analysts have attributed this to softer consumer demand in China and a combination of policy changes and higher interest rates elsewhere, which raise the cost of electric cars compared with internal combustion engine vehicles.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
An Olympics 2024 favourite: Speedos signature one piece swimsuit on sale for only $307NEWS brings you the latest local news from Australia and around the world. Stay up to date with all of the breaking sport, politics, entertainment, finance, weather and business headlines. Today's news, live updates & all the latest breaking stories from 7NEWS.
Read more »
The ‘harmful’ festival law adding $30 to the price of a ticketPressure is building on the NSW government to axe a law driving up the cost of festival tickets.
Read more »
The ‘harmful’ festival law adding $30 to the price of a ticketPressure is building on the NSW government to axe a law driving up the cost of festival tickets.
Read more »
The ‘harmful’ festival law adding $30 to the price of a ticketPressure is building on the NSW government to axe a law driving up the cost of festival tickets.
Read more »
Vietnamese men sentenced for role in cultivating $30 million cannabis cropFour Vietnamese men have been sentenced after they were drawn into doing the 'grunt work' on an illegal cannabis farm in northern NSW.
Read more »
Melbourne Anti-War Protests Cost Soars To $30 MillionFresh claims suggest the police operation in response to three-day anti-war protests in Melbourne has cost a staggering $30 million, significantly higher than the initial estimate of $15 million. The government, however, maintains that the final bill is still under calculation.
Read more »