While the budget highlighted major LNG projects currently under construction and their projected contributions to the national economy as the more advanced projects begin production, it also recognised supply challenges facing the market as LNG exports look set to double by 2015-16.
“Continued robust growth is also expected beyond the forecast years as additional projects come online, with Australia likely to overtake Qatar to become the world’s largest LNG exporter before the end of the decade,” the Budget Paper No. 1 noted.
However, it also suggested that “restrictions on the spread of new gas extraction technologies are likely to make this problem more acute.”
The budget also features an $A100 million commitment to the Exploration Development Incentive, which will fund exploration for new mineral deposits by targeting junior exploration companies from 1 July 2014.
Australian Pipeline Industry Association (APIA) Chief Executive Cheryl Cartwright said “From the pipeline industry’s perspective we want to see a growing economy, which means growth in our businesses.
“We don’t rely on government handouts or assistance, so a strong private sector and increasing demand for energy would be good for our industry.”
Ms Cartwright said that while there are some disappointments in the budget, the overall aim is a strong economy which should be good for our industry.
Australian Petroleum Production and Exploration Association (APPEA) Chief Executive David Byers said the budget spreads the burden across all segments of the Australian community and the economy.
“There is no simple or single solution that will ensure that Australia captures a new wave of growth and prosperity,” Mr Byers said.
“The critical role that Australia’s oil and gas industry can play is through investment in the next phase of projects currently under review.”
Meanwhile the Australian Mines and Metals Association (AMMA) said reforms to workplace relations are still needed to back budget measures.
AMMA Chief Executive Steve Knott said that budget measures must be supported by wider reforms to increase business confidence and make Australia a more attractive investment destination.
“These challenges are now pressing and we cannot miss the opportunity to take action as part of accelerating the course back to a budget surplus,” Mr Knott said.
“AMMA calls on the senate to support immediate reforms on new project agreements, excessive union site entry, unnecessary strike action, and lawlessness in the construction industry by restoring the ABCC.”
Click here to view the 2014-15 Federal Budget.
