Extending the LNG boom Improving Australian LNG productivity and competitiveness

by Michael Ellis, Christiaan Heyning, Olivier Legrand

Australia has been very successful in attracting investments into its resources sector, which has spread wealth throughout the country. Within resources, the LNG sector has seen the largest absolute growth, attracting investment over A$200 billion in the last decade (more than the mining industry). The ‘mining boom’ has in fact been an ‘LNG and mining boom’.
With such a track record, it is natural the country has begun a debate about how to continue this success. Much has been said about factors that influence the attractiveness of Australia for additional LNG investments. However, the debate has so far been inconclusive. One of the reasons may be the lack of a comprehensive fact base on the LNG industry’s economic contribution, relative competitive position and competitive improvement options.
This report aims to inform the debate and move it forward by providing a fact base of Australia’s current competitive position in LNG and the economic benefits at stake. Further, it lays out the full scope of measures for improving Australia’s LNG capital productivity and competitiveness. These measures could be implemented by industry, project operators or these parties in
wider partnerships within the community. It demonstrates that no single party can close the productivity gap alone. Working together or sharing the burden will be needed to make full improvement possible.

72 pages, Unbound

First published May 1, 2013