WASHINGTON: This country’s gas production is forecast to increase 27% in 2016 as a result of the three Curtis Island LNG plants and exports are expected to increase 35%.
According to the Resources and Energy Outlook report by Department of Industry, Innovation and Science the price of the LNG gas is expected to remain low.
This is a result of the low oil price with which the gas price is linked. The oil price dropped dramatically in September because of an increase in oil from the Organization of the Petroleum Exporting Countries.
The low price is expected to be offset by an increase in production but the tight margins in the market will make it hard for the three LNG plants to cover the construction costs.
But the depreciation of the Australian dollar against the US dollar will be tempered due to forecast lower LNG prices. The global LNG imports are forecast to increase 8% to 259mtpa in 2016 despite Japan’s LNG demand expected to decline from 2015 levels.
