Gas to go up

Australian exports of liquified natural gas (LNG) will increase nearly fourfold over the next decade under a new industry strategy to develop the upstream oil and gas sector.

The federal, state and territory governments have joined with the industry body, Australian Petroleum Production & Exploration Association (APPEA), to develop a strategy to lift Australia into the ranks of the world's top five LNG producers. Australia currently sits at number 11 in global rankings.

The world's top five LNG exporters in 2004 were Indonesia, Malaysia, Algeria, Qatar and Trinidad.

The new strategy was to make Australia more attractive to foreign investment to develop the upstream sector, aiming to set up a clear, longer-term framework for the industry that makes Australia attractive as a capital investment destination.

The strategy will also focus on expanding the domestic gas market, with APPEA targeting 70% of new electricity generation to come from gas by 2015.

The government and industry alliance is now working on an issues paper for public comment as a first step in the strategy.

The industry aims to publish a final strategy document by the end of the year to build on the federal government's energy white paper and other policy initiatives by all governments.