This crisis can’t look to natural gas for relief



Gas, the hoped-for get out of jail card for Michael Gunner’s record debt ridden NT Government, does not have a bright future.


Unlike the during the GFC, when massive spending on gas development prevented more serious problems for Australia, for the current crisis there is no similar fistful of dollars.


EnergyQuest Chief Executive Graeme Bethune (pictured) says Australian liquid natural gas revenue will be “smashed as affordability of gas field development to keep LNG plants full looms as long-term threat”.


He says total Australian LNG export revenue for 2019-20 is forecast at around A$50 billion and the impact of low oil prices will push 2020-21 LNG revenue down to as low as A$30 billion.


“Australian project deferrals have national economic implications,” says Dr Bethune.


“At the time of the GFC in 2009, Australia was just starting an LNG development boom.


“Between 2009 and 2015, the oil and gas industry spent $273 billion on development projects, mostly LNG.


“This was instrumental in Australia avoiding the worst of the GFC.


“Now in 2020, the Federal Government is again having to step in to stimulate the economy, with measures costing around $200 billion.


“Unfortunately, this time there is no accompanying surge in oil and gas investment and there is unlikely to be until oil prices improve.”




Be Sociable, Share!

A new way to support our journalism

We do not have a paywall. If you support our independent journalism you can make a financial contribution by clicking the red button below. This will help us cover expenses and sustain the news service we’ve been providing since 1994, in a locally owned and operated medium.

Erwin Chlanda, Editor

One Comment (starting with the most recent)

NB: If you want to reply to a previous comment, start your comment with this notation: @n where n is the number of the comment you want to reply to.
  1. Post COVID-19 NT Economy
    Posted April 16, 2020 at 1:01 pm

    If this prediction is correct, and I feel it is, the NT Government will have its credit rating even further downgraded.
    This means to the average NT citizen like taking a 40% pay cut.
    Try shopping with that pay level. We will need to tighten our belts alright.

    View Comment

Post a Comment

Your email is never shared. Required fields are marked *