PM Kevin Rudd attempts to win votes by assuring the nation he has the ability to steer us safely through the end of our China-driven minerals boom, however has he ignorantly overlooked Australia’s next cash cow? Natural gas.
Could Australia be in for another resources led surge in exports as we move towards 2015? Absolutely – as the surge in LNG in Australia continues, we could very likely cement our nation as the biggest shipper of LNG in the world.
The commodities “story isn`t over, it`s just changing its shape,” said Paul Bloxham, chief Australia economist at HSBC Holdings Plc in Sydney and a former Reserve Bank of Australia economist.
“LNG will support 180,000 jobs”
There are 10 Australian LNG projects ( 3 currently in operation and 7 in construction phase). According to forecasts compiled by global management consulting firm McKinsey & Co LNG production will boost budget revenues by A$11 billion a year from 2015 to 2025, when completed.
The LNG Australia projects will add a further 2.6 % to Australia`s gross domestic product (GDP), or $5,500 AUD for each household each year and support 180,000 jobs,
LNG Australia Earnings to Increase By 500% – A Fivefold Increase
Australia`s LNG export earnings are expected to increase by 500% – more than a fivefold increase from from $12 billion in 2012 to $61 billion (AUD) by 2017- 2018. LNG in Australia will contend coal contributions and will just trail our highest export earner, iron ore, according to The Bureau of Resources and Energy.
Australian LNG projects to become the next money-spinner
- BG Group’s enormous QGC LNG plant on Curtis Island, QLD ( worth $20 billion AUD on target to become Queensland`s first LNG exporter) is due for completion as early as 2014.
- Chevron Corp`s Gorgon project on WA’s Barrow Island, (worth $52 billion AUD and predicted to be the biggest resources development ever in Australia) on schedule to commence by 2015.
- Santos Ltd joint venture with Conoco Phillips and Origin Energy Ltd (adjacent to BG Group`s plant on Curtis Island, QLD) both on target to ship Australian LNG by 2015.
- The Ichthys project by Japanese Inpex Corp of Japan in Australia’s NT is expected to create thousands of jobs and is well on track.
- Chevron is also operating the Wheatstone development in WA.
- The colossal FLNG Prelude project by Royal Dutch Shell Plc (RDSA) is moving ahead with pace with plans on track for Australia’s largest floating LNG ship to produce gas offshore, and hundreds of jobs in LNG Australia, starting in 2017.
LNG in Australia developments typically have 20-year contracts to sell the commodity in U.S. dollars to Asian customers at oil-linked prices, Catherine Tanna, Chairman of BG project QCG Pty explained recently. ”So this underpins a long revenue stream for federal and state budgets,” she said.
LNG in Australia will reignite our economy for our next resources surge, as the mining boom cools with the 10 LNG Australia projects expected to contribute around $520 billion to GDP during 2015 – 2025.
The 2nd phase of LNG projects are also on the horizon and could contribute a further $320 billion to the Australian economy and create 150,000 LNG Australia jobs – nullifying Kevin Rudd’s claims of an end to the mining boom.
Whoever wins the election on Sept. 7 should look at the surge in gas exports to refill our treasury and ensure we consolidate our position as one of the world’s resource rich countries. Gas is the next phase of the resource boom and by 2015 we should solidify our position as the biggest shipper of LNG in the world.
If you’re wanting to find jobs in gas or jobs in LNG this is a great place to start. Australia is not coping well with it`s supply of its current annual engineering workforce needs. This has created a new opportunity for people looking for jobs in gas. The industry is diverse, with a wide selection of jobs in all sort of disciplines.
If your looking for Queensland LNG Jobs, we recently posted this article which is a good starting point as QGC is employing 15 people daily for LNG jobs.