LNG helps to lift ex­port earn­ings

North West Telegraph - - News - Jenne Bram­mer

Aus­tralia’s re­source and en­ergy ex­port earn­ings are fore­cast to reach a record $230 bil­lion in 2017-18, driven by higher iron ore and coal prices and rapidly grow­ing LNG ex­port vol­umes.

How­ever, the Depart­ment of In­dus­try, In­no­va­tion and Sci­ence ex­pects ex­port earn­ings to de­cline slightly from cur­rent lev­els, be­fore lev­el­ling out at about $212 bil­lion to $216 bil­lion a year from 2019-20 on­wards.

Depart­ment chief econ­o­mist Mark Cully said this com­pared with av­er­age an­nual ex­port earn­ings of $72 bil­lion in the decade be­fore the on­set of the re­sources boom, val­i­dat­ing the long-held view than the min­ing boom would con­tinue to reap div­i­dends long af­ter the price peak in 2011.

Mr Cully said, in the Re­sources and En­ergy Quar­terly re­port re­leased last week, over the next few years, the prices of iron ore and met­al­lur­gi­cal coal would be weighed down by in­creas­ing sup­ply and de­clin­ing steel pro­duc­tion in China.

How­ever, ac­cord­ing to the re­port, the price of Aus­tralian LNG, set by the oil price, is ex­pected to in­crease mod­estly, con­strained by price-sen­si­tive shale oil pro­duc­tion in the US, and slug­gish growth in world oil con­sump­tion.

The ramp up in ex­port vol­umes, driven by the min­ing in­vest­ment boom, is ex­pected to have run its course by the turn of the decade.

Newspapers in English

Newspapers from Australia

© PressReader. All rights reserved.