Australia is tipped to be well placed to meet demand for gas from Japan, China and South Korea. Photo / Bloomberg
Australia is tipped to be well placed to meet demand for gas from Japan, China and South Korea. Photo / Bloomberg
Australia's coal seam gas extraction industry is set for a bumper year in 2015, but the petroleum exploration sector isn't.
Industry analysis firm IBISWorld expects the CSG industry to grow very strongly, followed by online grocery sales, fast fashion, private equity and hydroponic crop farming.
But petroleum exploration looks asif it will be the big loser with the plunge in oil prices.
The mining and construction machinery manufacturing, cigarette manufacturing, motion picture and video distribution, and electricity distribution sectors also aren't expected to do well.
IBISWorld said Australia's CSG industry was undergoing a significant transformation, with revenue tipped to rise 148 per cent over the next year, to A$1.83 billion ($1.9 billion).
"While coal seam gas projects have become more viable due to new and improving extraction techniques, it is the development of export capabilities that is expected to drive rapid industry growth."
Australia was well-positioned to meet strong demand from big natural gas importers Japan, China and South Korea, IBISWorld said.
Supply to these markets from coal seam reserves in Queensland would be boosted this year as the Curtis Island LNG (liquefied natural gas) plant near Gladstone came online.
The Curtis Island LNG plant will be the world's first project to turn coal seam gas into liquefied natural gas.
In contrast, the outlook for Australia's petroleum exploration is poor.
Global oversupply and a refusal by Opec, the United States and Russia to cut production targets has led to a plunge in oil prices.
Investment returns from petroleum exploration are lower and so projects have become less viable, leading to predictions that industry revenue will fall 18.9 per cent.
