March 15th, 2015
Gas boom running out of steam but consumer price shock intact
As if the Federal Treasurer did not have enough to worry about, with an economy stuck in the slow lane and ballooning government debt.
Now, one of Australia’s few economic bright spots – the liquefied natural gas (LNG) boom – is coming off the boil as well, thanks to the plunge in oil prices over the past year.
By some estimates, Australia is set to become the world’s largest gas exporter by 2018.
But the LNG price is linked to the oil price, and with benchmark Brent Crude halving since June, that will blow a sizeable hole in Australia’s expected LNG bounty.