Australia is set to overtake Qatar as the world’s largest LNG producer by the end of the decade, as seven mega-projects in Queensland and WA ramp up. By 2020 Australia will be producing 100 million tonnes of LNG a year – that’s a fivefold increase from current levels.
Qatar has a moratorium on expansion until 2015 further boosting Australia’s chances of taking the top spot.
But experts say all that extra capacity could flood world markets and trigger a global gut pushing prices down.
Much will depend on demand from Asia and the race is already on to lock in supply deals with key markets.