Australia’s mining companies will find 2018 to be an encouraging year for mining exploration, production and maintenance projects, as activity will increase in fiscal 2018.
BIS Oxford Economics’ Mining in Australia 2017 to 2032 report projected a 5.5% growth for the industry between 2017 and 2018. The increase in mining activity will take place amid an expected increase in global consumption for natural gas.
As early as now, exporters and energy distribution companies need to consider the importance of storage solutions, including container shelters. By 2022, Australia would become the world’s top exporter of liquefied natural gas. Adrian Hart, BIS associate director of construction, maintenance and mining said that more investments in oil and gas would allow the country to achieve that status.
These investments include some projects that were shelved and taken ‘out of care and maintenance and back into production’, according to Hart. This trend will help the country meet an expected growth in demand for natural gas by 2040.
Natural Gas Consumption
The Gas Exporting Countries Forum estimated a 53% increase natural gas consumption over the next 20 years. Australian exports will be a partial reason for the changing market trends, according to the group’s Global Gas Outlook 2017 report. It will also be the main consumer of natural gas with an expected increase of up to 4.8% every year until 2040.
Aside from the country’s exports, the U.S. and China’s increasing shale mining activities will also ‘dramatically increase’ demand for the commodity. Consumption will grow at the same time prices remain cheap, which allows energy companies to produce plenty of natural gas supplies.
The growth in Australia’s mining activity and global demand for natural gas will be beneficial not just for energy producers, but for companies that supply energy infrastructure for storage and shipments.