Why Australian LNG Exporters Need Better Pipelines for Rising Volume

gas factoryExporters of liquefied natural gas (LNG) in Australia will have to invest in better pipelines due to a record-high volume of shipments, which are expected to continue in the future.

High-density polyethylene pipe fittings are among the best options to prevent corrosion and contamination. While demand for exports may be stable, there’s a need to reduce the sector’s environmental footprint by preventing leaks as well.

Record Growth

During the fiscal 2017-2018 period, LNG exports reached 59.7 million tonnes. This represented an almost 20% increase on an annual basis. More exports meant bigger revenues, as companies gained nearly $31 billion in the past year. Some projects in states such as Western Australia contributed to the record growth, including Chevron’s Wheatstone project.

In terms of export markets, Australia shipped the biggest share of LNG exports to Japan with 27.5 million tonnes, followed by China with 20.3 million tonnes. Both countries’ acquisitions accounted for 80% of all overseas shipments.

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The surge in exports only supported a forecast about Australia’s future as one of the global gas exporters, according to the International Energy Agency’s (IEA) World Energy Outlook. Around 70% of gas production will be sent overseas by 2040, which means that an efficient infrastructure will be more necessary.

A major reason for the increase in worldwide primarily stems from a bigger population in the next 20 years. China and India comprise most of the need for energy exports today, but the popular boom may trigger a bigger need that will be equivalent to demand from both countries.

Exporters should focus more on modernising their networks to improve deliveries and prevent bottlenecks. Even if demand is strong, LNG buyers may look elsewhere if your pipelines are inefficient. How do you plan to take advantage of Australia’s growing foothold in the energy export business?