Carbon-neutral LNG will be key for Australia to remain competitive

Carbon-neutral LNG will be key for Australia to remain competitive

Australian producers need to be at the forefront of carbon-neutral liquefied natural gas (LNG) or “green LNG” to remain competitive, energy research company Wood Mackenzie told delegates at the Australian Petroleum Production & Exploration Association (APPEA) conference today. But progress is not fast enough.

As the energy transition gathers momentum, countries and corporates are racing ahead to announce net-zero pledges and decarbonisation targets. Countries with carbon neutrality pledges now account for 30% of global gas demand and 75% of LNG demand, according to Wood Mackenzie. The list includes some of Australia's largest LNG customers – China, Japan and South Korea.

In addition, faced with new and lower-cost LNG supply coming online over the next decade from Qatar and Russia, Australian producers must do more to avoid losing market share.