LNG picked to soar In Queensland

According to the South Australian company's annual review of the industry the capacity of Queensland LNG is set to reach at least 25 million tonnes within nine years. Australia produced 20.8 million tonnes of LNG in the 12 months to June 30. "Shortages are only beginning to emerge but are expected to intensify in 2012, particularly for project sub-contractors," EnergyQuest chief executive Graeme Bethune said. Origin Energy and ConocoPhilips' A$35 billion ($44 billion) Australia Pacific LNG joint venture on Curtis Island off Gladstone, last month got the final investment decision to go ahead.

Western Australia Premier Colin Barnett yesterday said Australia should establish a LNG receival point on the East Coast so that rather than exporting it, the country could use more of the energy it produces. "Why wouldn't we make a simple policy decision as a country and use some of Australia's natural gas for power generation and distribution here, and do what Japan, Korea, China and India are quite deliberately doing," Barnett said on ABC Radio.