Australia has a long history of oil and gas production. The ongoing development of its substantial reserves strengthens the country’s position as a leading global player in the sector. Oil and gas exports are major contributors to the Australian economy, earning A$23.2 billion (approximately $14.46 billion) in taxes and royalties for 2024-2025..
Conventional Gas
Oil remains the largest primary energy source in Australia, accounting for 38 percent in 2024-2025. Gas is the country’s third-largest energy resource after oil and coal, making up 24 percent. By the end of the decade, Australia is expected to have ten operational LNG projects with a combined nameplate capacity of 86 million tonnes per annum (mtpa). This progress will position Australia to become the world’s largest exporter of LNG by the end of the decade.
Competitive Advantages
Australia’s competitive position is bolstered by a strong economy, abundant resources, supportive government policies, mature trade links with key markets, and the participation of major oil and gas companies at all stages of the supply chain
Resources and Production
Australia has substantial conventional gas resources, with proved and probable gas reserves standing at 126,000 petajoules, including 83,000 petajoules of conventional gas. In 2024, Australia produced 2,460 petajoules of gas, with 50 percent exported as liquefied natural gas (LNG).
Approximately 92 percent of Australia’s conventional gas resources are located in the Carnarvon, Browse, and Bonaparte basins off the coast of Western Australia and in the Northern Territory. Additional resources exist in offshore basins along Australia’s southern margin and in onshore basins, indicating significant potential for future commercial discoveries.
Oil Resources
Australia’s oil resources primarily consist of condensate and naturally occurring liquefied petroleum gas (LPG) associated with large offshore gas fields. The country also has several crude oil reserves. There is potential for growth in Australia’s oil reserves within existing fields and for new discoveries in proven and underexplored frontier basins. Australia possesses large unconventional oil resources hosted in oil shales, with identified shale oil resources estimated at 131,659 petajoules (22,391 MMbbl).Global Demand and Export Trends
The growing global demand for energy, driven mainly by China and India, has resulted in a strong increase in gas demand, particularly for LNG due to its suitability for long-distance transportation. Australia’s geographic and geological positioning, combined with its ability to attract foreign investors and key Asian LNG buyers, has enabled it to meet various demands and emerge as one of the world’s largest LNG exporters. In 2024, Australia was the world’s third-largest LNG exporter, accounting for 10 percent of global LNG trade. The strongest growth in Australia’s export earnings is projected to be in LNG, increasing from 23.2 million tonnes in 2022 to about 80 million tonnes in 2024-2025. By the end of this decade, Australia is expected to be the world’s largest LNG exporter, generating estimated export earnings of nearly $45 billion in 2024-2025 compared to just over $17 billion in 2022-2023.
Unconventional Gas
Australia also has significant unconventional gas resources. The economic demonstrated resources (EDR) for coal seam gas (CSG) have continued to rise, reaching an estimated 45,553 petajoules at the end of 2024. Large CSG resources exist in the coal basins of Queensland and New South Wales.
Shale gas production in Australia is an emerging industry, with estimated shale gas resources almost double that of conventional gas. Several onshore basins have significant potential for shale and tight gas, attracting exploration activities in South Australia, Western Australia, and the Northern Territory.There are currently seven liquefaction plants completed and about six recently started or under construction, providing a total capacity of 62.3 million tonnes. The Queensland Curtis LNG Project (QCLNG) commenced production from its first LNG train in late 2014, marking the world’s first LNG exports from CSG and from Australia’s east coast..
Future Outlook
Asian demand for LNG is expected to continue growing, and Australia’s location positions it well as a competitive supplier to these markets. In 2024, around 80 percent of Australia’s LNG exports were to Japan, with China as the second-largest destination, accounting for 16 percent. By 2030, it is expected that 40 percent of Japan’s LNG supply will come from Australia, along with 40 percent of China’s LNG and 25 percent of South Korea’s LNG.
