LNG tops in resource investment

INVESTMENT in Australia’s resources sector has hit a record of $A260.8 billion, boosted largely by LNG projects, according to a new report.
LNG tops in resource investment LNG tops in resource investment LNG tops in resource investment LNG tops in resource investment LNG tops in resource investment

The Mining Industry Major Projects report released by the Bureau of Resources and Energy Economics today found committed capital investment in the resources sector rose 12% from October 2011.

The $260.8 billion consists of 98 projects at an advanced stage of development including 39 minerals projects, 38 energy projects, 19 infrastructure projects and two mineral processing projects.

More than 60% of the capital expenditure is accounted for by seven LNG projects.

"The majority of the investment to expand the world's LNG supply capacity is taking place in Australia because of our relatively large gas reserves and proximity to the Asian markets," BREE executive director and chief economist Quentin Grafton said.

Federal Resources and Energy Minister Martin Ferguson said the report demonstrated the growing importance of LNG development to Australia's resources sector.

"The increase in committed capital expenditure is largely driven by investments in LNG projects," Ferguson said.

"During this reporting period we have seen the final investment decision on the $34 billion Ichthys LNG project, the advancement of the Greater Western Flank gas field and the $5 billion increase of the BG Group's Curtis Island LNG project."

In the six months to April 2012, there were 25 projects completed at a record value of $32.6 billion, almost double the previous record value when $12.5 billion worth of projects were completed in the six months to April 2008.

BREE said the record value of completed projects was underpinned by the completion of the Pluto LNG project as well as the expansion of the Worsley alumina refinery.

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