Analysts are forecasting a $US200 billion boom in new LNG developments.Credit:AFR
Wood Mackenzie's latest gas report forecasts about 90 million tonnes (mmtpa) worth of LNG development projects around the world will reach a final investment decision and start construction over the next two years.
“The LNG boom is back,” Wood Mackenzie global LNG supply research director Giles Farrer said.
The previous LNG construction boom ran from 2010 to 2014,with Australia investing $US200 billion in major gas projects. Santos was spending $10,000 a minute at its peak.
Australia's exports should reach $49 billion in value in 2019-20,but the level of new construction will be lower than other countries.
Loading
ASX-listed gas companies Santos plans to develop its Corvus gas field – which could hold about 2.5 trillion cubic feet of gas – and Oil Search has signed an agreement with the Papua New Guinean governmentto develop a $US15 billion gas field in the country.
Rystad Energy analyst Readul Islam said about 30.9 million tonnes of LNG capacity could be sanctioned within Australia and PNG,requiring nearly $US39.5 billion in spending.