A report released by the International Energy Agency has shown the price of liquefied natural gas is forecast to fall despite Australia rivaling Qatar as the world’s largest gas exporter by 2021.
The 2016 Gas Medium Term Market Report predicted the next five years will see a reshaping of the global gas trade with new gas supplies coming online just as demand growth in some major markets weaken.
The report said between 2015 and 2021, liquefaction capacity will increase by 45 per cent, mostly from the United States and Australia. New projects in both countries have commenced ramping up production.
It also forecast the world’s top two liquefied natural gas buyers, Japan and South Korea, are set to decrease their demand, meaning new suppliers will need to find other markets.
The two nations currently account for almost 50 per cent of global natural gas imports.
IEA executive director Fatih Birol said there has been weaker-than-expected demand in Asia.
“We see massive quantities of LNG exports coming on line while, despite lower gas prices, demand continues to soften in traditional markets,” Dr Birol said.
“These contradictory trends will both impact trade and keep spot gas prices under pressure.”
The annual report gives a detailed analysis and five-year projections of natural gas demand, supply and trade developments.
It said slower primary energy demand growth and the decline in the energy intensity of the world economy are lessening demand growth for all fossil fuels, including gas.
The report also noted the demand for natural gas in Japan may be set for a further sharp decline depending on the scale of the nation’s nuclear comeback.
Japan had been actively working to restart their nuclear power plants, which have been shut down since the Fukushima Daiichi nuclear disaster in March 2011.
A 5.0 magnitude earthquake on Sunday, 44 kilometres northwest of Tokyo, looks likely to halt those plans a little longer.
Locally next Tuesday from 7.15am, Department of Mines and Petroleum executive director Jeff Haworth will be the guest speaker at a Bunbury Chamber of Commerce breakfast, speaking about gas exploration in the South West.
Mr Haworth plans to discuss all aspects of local gas exploration and extraction.
For more information, or to register, visit bcci.asn.au.
From 2pm to 7pm that same day, the Shire of Capel will host the Southwest Gas Exploration Expo at Capel Community Hall. The shire has invited gas companies, government departments and groups opposed to gas field in the South West to hold information stalls.
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