The Australian Government’s Resources and Energy Major Projects (REMP) 2023 report has demonstrated how the Australian oil and gas sector is driving the economy, with 12 new projects in the lineup, accounting for $36 billion of investment (46.5%) out of the $77.4 billion pipeline.
Lithium and iron ore accounted for $7.2 billion (9.3%) of committed projects, followed by gold at $6.6 billion (8.5%) and coal at $4.6 billion (5.9%).
Australian Energy Producers Chief Executive Samantha McCulloch noted that the report highlighted the critical role the oil and gas sector plays in the national economy.
“Australia’s oil and gas continues to power the national economy, creating jobs and delivering billions of dollars of investment, much of it into regional communities. The pipeline of new gas projects highlights the importance of policy settings and regulatory certainty to unlock investment in new supply,” McCulloch said.
“With Australia facing energy shortfalls on both coasts, new gas supply is urgently needed to avoid blackouts and put downward pressure on prices while securing future economic benefits.”
The report indicates that only one new oil and gas project made a final investment decision between November 2023 and the end of the 12 months.
“The pipeline of mining and critical minerals projects will also rely on natural gas supply, with AEMO forecasting resource projects will add a further 23 TJ/day to gas demand in Western Australia by 2023,” McCulloch said.
Additionally, the report found a surge in hydrogen projects, but only three out of 76 planned projects reached the committed phase in 2023, resulting in a capital expenditure of $234 million.
“Natural gas combined with carbon capture, utilisation and storage (CCUS) us today the most affordable and mature pathway to scale-up low-carbon hydrogen production,” McCulloch added.
Along with the REMP report, the Federal Government has also released its latest Resources & Energy Quarterly, which showed revised LNG exports for 2023-24 from $71 billion to $73 billion, with projections for a drop to $64 billion in 2024-25.
The total oil exports are expected to reach $14 billion this year and $11 billion in 2024-25.
