Australia needs to invest more in energy and gas exploration, report states

Australia LNG

The Australian Energy Market Operator expects the country will face a natural gas shortage by 2016 if new reserves are not opened up. AEMO forecasts investment requirements for the gas industry and said the liquefied natural gas exports from Queensland, which should begin in 2014, will have a significant impact on the domestic gas market, the Financial Review reported.

"If possible reserves are not developed in a timely way, potential supply shortfalls to the LNG export and domestic market may be seen towards the end of the period increasing LNG demand in 2016," a report from the AEMO stated.

The AEMO also expects gas prices to increase in Australia over the next four years, the article stated. Some companies are urging the Australian government to limit how much gas is sold to foreign countries in order to keep domestic prices and resources secure.

Bloomberg reported that Australia would need to invest $4.2 billion in electricity transmission networks over 20 years due to the slowing energy market growth. Many of the Australian LNG exports are going to Asian countries.

More information on the Australian natural gas market can be found at PennEnergy's research area.

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