Australia Oil And Gas - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts 2020 - 2029

Key Highlights

• Over the medium term, factors such as increasing demand for natural gas and related infrastructural developments are expected to drive the Australian oil and gas market during the forecast period.
• However, the country's shift toward renewable energy, dropping refining capacity, and closure of crude oil refineries in Australia are expected to restrain the market during the forecast period.
• Nevertheless, digitalization in the oil and gas industry, including artificial intelligence (AI), machine learning, data analytics, big data, robotics, virtual reality (VR), and automation, is expected to create immense opportunities for Australia in the coming years.

Australia Oil and Gas Market Trends

Midstream Segment Expected to Witness Significant Demand

• The midstream oil and gas sector covers transporting and storing crude oil, natural gas, and refined products. In its unrefined state, crude oil is transported by two primary modes: tankers, which travel interregional water routes, and pipelines, through which most of the oil moves for at least part of the route. After oil extraction and natural gas separation, pipelines transport the products to another carrier or directly to a refinery. Petroleum products then travel from the refinery to market by tanker, truck, railroad car, or more pipelines.
• Crude oil, natural gas liquids, and their products are transported from the production facilities to an offsite temporary storage plant and then transported to a large storage hub for refining. Once refined, the end products of crude oil, such as LPG, jet fuel, gasoline, and diesel, are transported to the residential sector, industrial users, gas stations, storage terminals, etc.
• According to the Australian Pipelines and Gas Association, in 2021, Australia had more than 4000 km of natural gas transmission pipelines that efficiently transport gas under high pressure from where it is produced on the outskirts of cities. According to Australian Petroleum Statistics, natural gas production in Australia increased from 110.1 billion cubic meters in 2017 to 147.2 billion cubic meters in 2021. Australia's gas consumption increased by 15%, from 37.1 billion cubic meters in 2017 to 39.4 billion cubic meters in 2021. The increased production is anticipated to boost the growth of the pipeline infrastructure in Australia.
• In May 2022, construction started on a 580-kilometer, USD 460 million pipeline in Western Australia that will take natural gas from the Perth basin to resource projects in the state's Goldfields.
• The country is one of the top exporting of liquified natural gas (LNG) to various countries such as Japan, China, South Korea, Taiwan, Malaysia, and other countries. In 2022, Australia's total export of LNG was 180.96 million megaliters.
• Therefore, due to these factors, the midstream segment is expected to witness significant growth in the Australian oil and gas market during the forecast period.

Increasing Demand for Natural Gas and Related Infrastructure Expected to Drive the Market

• The country is significantly sifting towards cleaner sources of energy generation in order to reduce the emission of harmful greenhouse gases in the environment. These cleaner sources of energy generation include natural gases.
• Natural gas has witnessed significant growth in Australia's production and consumption for several years as it is readily available and is a primary energy source for cleaner energy. In 2022, Australia's total natural gas production was 163,360 million cubic meters, which rose from 56,256 million cubic meters in 2011. Further, the country's total gas consumption reached 39.4 bcm in 2021, compared to 32.8 bcm in 2011, recording a 1.9% growth rate between 2011 and 2021.
• The increasing exploration and production of natural gas reserves are mainly driven by rising industrial demand from the refining, petrochemical, particular chemical, and fertilizer industries. Additionally, secure storage helps the industry manage seasonal variations in demand and enhances energy security.
• As part of Australia's gas-fired recovery, the government committed to boosting the entire supply chain's east coast gas market. The government aims to focus on three key areas: unlocking supply, delivering an efficient pipeline and transportation market, and empowering gas customers. Therefore, this factor is expected to increase the demand for gas-based infrastructure in the country.
• In August 2022, Santos Ltd. announced that the company had bought a company that owns an approved underground pipeline route that could transport natural gas from its planned Narrabri project.
• Therefore, owing to such factors, the increasing demand for natural gas and related infrastructure is expected to drive the market during the forecast period.

Australia Oil and Gas Industry Overview

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