Australian LNG under pressure
A global supply glut, cheaper rivals and tightening emissions policies are a growing problem for Australia’s costly gas-export plants
At least two of Australia's new liquefied natural gas-export facilities in Queensland may run under capacity until global demand exceeds supply around 2022. Even then, the need for their product might be less than thought. Changing buyer needs, an unanticipated shortage of onshore coal-bed methane (CBM) to supply the trains, and possible federal intervention to restrict exports in preference for eastern Australia's tightening domestic market could see plants run under nameplate capacity for some years. Longer term, cheaper LNG and the adoption of clean technologies could strand the high-priced Queensland assets altogether. Matt Howell, senior research analyst for consultancy Wood Mackenzie's
Also in this section
24 December 2025
As activity in the US Gulf has stagnated at a lower level, the government is taking steps to encourage fresh exploration and bolster field development work
23 December 2025
The new government has brought stability and security to the country, with the door now open to international investment
23 December 2025
A third wave of LNG supply is coming, and with it a likely oversupply of the fuel by 2028
22 December 2025
Weakening climate resolve in the developed world and rapidly growing demand in developing countries means peak oil is still a long way away
