Australia to lead Asian growth in LNG production

Image: Chevron Australia

Led by increased liquefied natural gas (LNG) production capacity in Australia, Platts Analytics has forecast a 16 per cent rise in Asian output in 2017.

LNG production in Asia is expected to rise to 127 million tonnes (Mt) this year, the commodities and energy markets agency forecast in its 2017 outlook.

In addition to the increased capacity in Australia, Platts believes commissioning of the world’s first floating LNG plant in Malaysia will herald new global opportunities for LNG production.

However, Asia will continue to be a net LNG importer, according to Platts, with demand across the region forecast to grow by six per cent to 195Mt in 2017.

As LNG production capacity expands, particularly in Australia and the United States, Platts forecasts an “inevitable” global surplus until 2024.

“Some of this surplus is expected to find buyers across Asia, as the region is in structural deficit and pricing conditions remain economically viable,” Platts outlined.

Earlier this week, the Australian Government lifted its forecast for LNG exports in the 2016-17 financial year to 52.4Mt.

In the Department of Industry, Innovation and Science’s latest resources and energy quarterly, it also provided an estimate for 2017-18 of 67.3Mt, which would be about 82 per cent higher than the 36.9Mt recorded in 2015-16.