Australia’s LNG industry could become the world’s largest and most technologically advanced, contributing more than A$55 billion to the country’s GDP in 2020, according to a new report from Accenture.
The report, ‘Ready or Not? Creating a world-leading oil and gas industry in Australia’, analyses the readiness of the LNG industry to capitalise on future opportunities as it moves from construction into production. Based on interviews with LNG operators and the companies that service them, the report comes ahead of the Australian Petroleum Production & Exploration Association (APPEA) Conference and Exhibition 2015.
According to Accenture, in order for Australia to secure its place as the world’s leading LNG producer and derive the associated benefits including ongoing growth of the nation’s prosperity, there is a need to improve international competitiveness, remove regulatory constraints and introduce a more flexible labour relations regime.
Accenture found that over the next five years natural gas production will increase by more than 90 percent, the number of wells in production will increase by 400 percent and pipeline infrastructure in Australia will increase by 45 percent.
Total cumulative capital investment and operating expenses will reach around A$360 billion by 2020, 40 percent more than that invested during the recent capital investment boom.
Against this growth backdrop, greater industry and regulatory collaboration, accelerated workforce retraining and further investment in digital and automation will be required. However, Accenture and APPEA believe that a successful transition from construction to production could be a win-win for LNG operators, the Australian service sector, the government and the overall economy.
