Capturing the next wave of LNG investment

Abstract

With global LNG demand expected to double over the next 10–15 years, Australia is witnessing an unprecedented wave of LNG investment, bringing with it enormous economic and community benefits. 50 years since we first drilled for oil on Barrow Island, Chevron is spearheading this growing dominance and now leads the delivery of more than $80 billion investment in world-class Australian natural gas projects. But while the nation has rejoiced in the attraction of this investment, has a second wave started to slip from our grasp? The huge capital cost and complexity of LNG projects requires a stable and predictable investment environment. It’s not enough to have an abundant resource and proximity to established markets. It takes an alignment of stars which can take decades to achieve, if it happens at all. One of the most important elements is ensuring stakeholder groups work together to maintain the conditions necessary to keep the investment pipeline flowing. Industry must invest in innovation and technology to work smarter, more efficiently and more competitively. In a global race for capital, government policy must be conducive to driving up productivity and driving down the high costs that threaten to stifle investment and lure projects away. Everyone needs to be adaptable and realistic to ensure they don’t kill the golden goose. Australia has the potential to be the world leader in LNG production and Perth a global LNG technology centre of excellence. By thinking long-term and smart, we can make it happen.