Asia’s Gas Crunch Opens the Door for Australian LNG
Asia’s Gas Crunch Opens the Door for Australian LNG Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.
Asian energy importers are likely to develop a stronger - and lasting - taste for Australian natural gas as they get pressured by a Middle East energy commodity supply shortage.
That’s according to one industry executive who sees a bullish future for Australia’s gas exports.
“This is the first time within Asia where there is a shortage, and it makes me think long-term it's a positive for Australia,” Bryan Sheffield, chief executive of investment firm Formentera Partners, said at an industry event today, asquotedby Reuters.
“Japan is now all of a sudden looking at buying more gas from Australia, and it's going to lead to more development,” Sheffield noted.
Formentera Partners has a stake in the Beetaloo shale gas basin in Australia’s Northern Territory, where it is partnering with Japanese Inpex, a major player in the Australian energy industry and operator of the Ichthys LNG project.
Japan is one of the biggest clients of Australian LNG producers.
In fact, it is their second-biggest client, after China, accounting for close to a third of exports.
Earlier this month, the governments of Australia and Japaninkeda deal for closer cooperation in the energy space, including critical minerals.
Australia’s shale gas resources provide it with a major advantage, Formentera’s Sheffield also said, asquotedby Bloomberg.
Australia’s shale resources are concentrated in the Beetaloo basin, which is estimated to hold some500 trillion cu ft of gas.
It has been compared to the giant Marcellus shale play in the United States.
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