Asia will be the main driver of demand growth for LNG over the next five years. In fact the top five importers of LNG are now all based in Asia, which is a dramatic change from just 10 years ago.
The Australian domestic market is also going through a series of unprecedented changes. After a strong run-up in investment, Australia’s LNG projects are now set to export record volumes of LNG to the world. By 2016, ANZ expects LNG to have taken over from iron ore as the key driver of Australian exports.
However, the export volumes to which Australia’s LNG projects have committed will most likely place pressure on domestic gas supplies, especially on the east coast, which in turn should push Australian domestic gas prices higher.