THE next generation of Australian LNG projects may have been effectively killed off by the $80.8bn gas deal between Russia and China, analysts at Macquarie have warned.
Macquarie on Thursday painted a bleak outlook for the next wave of multi-billion-dollar LNG plants and expansions earmarked for development around the nation.
Macquarie analysts led by Adrian Wood found the recently announced deal to pump vast quantities of Siberian gas into China over the coming decades would make it increasingly difficult for Australian projects to compete.
The Russian gas deal is for the equivalent of 29 million tonnes a year of LNG, which is more than Australia's entire current output and which represents around a quarter of China's current gas demand.
The $US75bn development cost for the Russian project is about 45% cheaper per unit of gas compared with the LNG projects under construction around Australia.
Read the full story in The Australian.
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