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Australia Natural Gas Market by Type (Ethane, Propane and Methane)
The Australia Natural Gas Market is valued at US$ 24.83 billion in 2023 and is predicted to expand at a CAGR of 2.9% to reach US$ 33.1 billion by the end of 2033. China remains the leading importer of natural gas from Australia and has been a significant market for Australian LNG exports in recent years.
Natural gas is a fossil fuel that primarily consists of methane and other hydrocarbon gases. It is often found deep beneath the Earth's surface, in rock formations, or associated with oil deposits. Natural gas is a critical energy source for residential and industrial purposes, providing heat and electricity to millions worldwide. It is also used as a feedstock in the production of various products such as fertilizers, plastics, and chemicals.
Extraction and transportation of natural gas can still have significant environmental impacts just like non-renewable energy sources, particularly regarding water usage, land disturbance, and methane leakage. As a result, there is growing pressure on the natural gas industry to reduce its environmental impact and transition toward cleaner energy sources.
| Report Attributes | Details |
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Australia Natural Gas Market Size (2022A) |
US$ 28.28 Billion |
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Market Estimation (2023E) |
US$ 24.83 Billion |
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Market Forecast (2033F) |
US$ 33.1 Billion |
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Market Growth Rate (2023 to 2033) |
2.9% |
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Collective Value Share of Top 3 Regions (2023) |
70% to 75% |
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From 2018 to 2022, the consumption of natural gas in Australia increased at a CAGR of 2.7%. Domestic consumption of natural gas and the growing demand from Asian markets are key driving forces behind the growth of the market. Market outlook for the next ten years is also pretty optimistic.
According to Persistence Market Research’s analysis, demand for natural gas in Australia is projected to increase at 2.9% CAGR from 2023 to 2033. Continued market growth is expected due to ongoing domestic demand, increased use of natural gas in power generation, and growing demand from industries such as chemicals, fertilizers, and transportation. Factors such as the shift toward cleaner energy sources and stringent environmental regulations will also drive the demand for natural gas, particularly in the transportation and industrial sectors.
It's important to note that natural gas demand growth could be impacted by factors such as fluctuations in global energy prices, technological advancements, and changes in government policies & regulations.
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Get a Customized Version“High Demand for Natural Gas as Alternative Fuel”
Increasing use of natural gas as an alternative fuel in various applications is driving its demand in Australia. One of the significant reasons behind this demand is the low environmental impact of natural gas compared to conventional fuels. The existing natural gas distribution system in Australia makes it easy to access natural gas as a domestically produced gaseous fuel.
The country's position as the world's largest producer of liquefied natural gas (LNG) also makes it an attractive option for those concerned about fuel supply security and cost.
Fleet operators prefer natural gas as a fuel source due to its cost-effectiveness, lower environmental impact, and wide availability through the existing natural gas distribution system. Natural gas is in high demand in Australia as an alternative source of energy.
“Expansion Plans in Australia's Natural Gas Market”
Expansion plans in the natural gas market in Australia present a variety of potential benefits beyond increased export potential, job creation, improved energy security, increased investments, and environmental benefits. The development of the industry may require the construction of new infrastructure, such as pipelines and liquefaction facilities, providing new business opportunities for construction and engineering firms.
To remain competitive in the global natural gas market, Australian companies may also need to invest in new technology and innovation, leading to the development of more efficient extraction and production methods and advancements in transportation technology. Expansion plans could also lead to the negotiation of new international trade agreements, increasing market access for Australian natural gas producers, and creating new, long-term trading partnerships.
Growth of the industry could have a positive impact on Australia's overall economic growth, leading to increased tax revenue for the government, improved infrastructure development, and increased investment in other sectors of the economy.
Why Does Victoria Account for a Significant Share of Natural Gas Production?
Victoria accounted for a market share of 29.3% in 2022. One of the key reasons is the state's access to significant natural gas reserves. The Bass Strait fields, located off the coast of Victoria, have been producing gas since the 1960s, and the state also has other onshore and offshore gas reserves. This abundant supply of natural gas gives Victoria a competitive advantage in the market, as it can reliably and cost-effectively supply gas to customers.
Victoria's location is also a significant factor in its dominance in the market. The state is strategically located close to significant demand centers, including Melbourne and Sydney. This proximity makes it easier and more cost-effective to transport natural gas to customers in these areas. Victoria has a well-developed infrastructure.
The state has invested in pipelines, processing facilities, and storage facilities, which enable efficient and reliable delivery of natural gas to customers across the state and beyond. This infrastructure also helps ensure that Victoria's natural gas supply is secure, even during periods of high demand or disruptions in supply. Huge investments by Victoria state in technology are also an important factor driving its dominance in the natural gas market in Australia.
Victoria’s access to natural gas reserves, location, infrastructure, investment in technology, and government support have all contributed to its dominance in the market.
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Which Type of Natural Gas is in High Demand in Australia?
Based on gas type, methane gas accounted for 90% market share in 2022. Natural gas is typically composed of multiple gases, including methane, ethane, propane, and butane. Methane gas accounts for a significant proportion of the natural gas produced and consumed in Australia.
Methane gas is the primary component of natural gas, accounting for approximately 70% to 90% of its composition. It is a colorless and odorless gas that is primarily formed from the decomposition of organic matter. Methane gas is commonly found in coal beds, shale formations, and conventional natural gas reservoirs, and it is typically extracted using drilling techniques such as hydraulic fracturing.
In Australia, the prominence of natural gas production comes from conventional natural gas reservoirs, which primarily contain methane gas. The natural gas reserves in Australia are located in multiple regions, including the North West Shelf, Bass Strait, and Cooper Basin. These regions have contributed significantly to Australia's increasing role in the global natural gas market.
Methane gas is commonly used for a range of applications, including electricity generation, heating and cooling, and industrial processes. It is also used as a feedstock for the production of chemicals and fertilizers. In recent years, there has been increasing interest in using methane gas as a transportation fuel, with the development of compressed natural gas (CNG) and liquefied natural gas (LNG) vehicles.
Methane gas is the primary component of natural gas, which is produced from conventional reservoirs in Australia. Methane gas is used for a wide range of applications and is likely to remain a critical component of the energy mix for the foreseeable future.
Which Application of Natural Gas Accounts for a Leading Market Share?
In Australia, industrial fuel application of natural gas accounted for 51% market share in 2022. Natural gas is a versatile and convenient energy source that can be used in various applications. In Australia, the industrial sector accounts for a significant portion of the country's natural gas consumption.
Natural gas is used in the industrial sector for various purposes, including fuel for power generation, heating and cooling, and as a feedstock for the production of chemicals and fertilizers. Natural gas consumption in the industrial sector has been increasing in recent years due to the expansion of the country's manufacturing and mining industries.
The manufacturing industry is one of the largest consumers of natural gas in Australia, using it as a fuel for the operation of boilers, furnaces, and other industrial equipment. Natural gas is also used in the production of metals, glass, and paper products. The mining industry is another significant consumer of natural gas, using it for power generation and heating in remote mine sites. Use of natural gas in electricity generation has been increasing in Australia.
Natural gas-fired power plants are considered a cleaner and more efficient alternative to coal-fired power plants. The increasing use of natural gas in electricity generation has contributed to the country's efforts to reduce greenhouse gas emissions and transition towards a more sustainable energy mix.
Apart from the industrial sector, natural gas is also used in the residential and commercial sectors for heating and cooking purposes. The transport sector is also showing increasing interest in using natural gas as a transportation fuel, particularly in heavy-duty vehicles such as buses and trucks. In conclusion, industrial fuel application is one of the dominant uses of natural gas in the Australian market.
Leading manufacturers of natural gas in Australia account for a market share of 65% to 70%. With key players occupying a significant portion of the market, it is expected to become a consolidated market soon. Prominent companies in the Australian market are constantly working to increase their production capacity and improve their product range.
Government regulations, particularly those related to environmental and safety standards, can have an impact on the competitive landscape of the market. The competitive landscape can also be influenced by global trends and changes in demand, supply, and prices.
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| Attribute | Details |
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Forecast Period |
2023 to 2033 |
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Historical Data Available for |
2018 to 2022 |
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Market Analysis |
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Key Regions Covered |
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Key Market Segments Covered |
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Key Companies Profiled |
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Pricing |
Available upon Request |
By Type:
By Source:
By Application:
By Region:
Methane gas led with 90% share of the Australian market in 2022.
Demand for Australian natural gas increased at a CAGR of 2.6% from 2018 to 2022.
Sales of natural gas in Australia reached a market value of US$ 28.28 billion in 2022.
BHP Group, Santos Ltd., Origin Energy Ltd., Shell Australia, and Japan Australia LNG account for 65% to 70% market share.
Revenue from natural gas in Australia is predicted to reach US$ 33.1 billion by 2033.
Sales of Australian natural gas are projected to increase at a CAGR of 2.9% from 2023 to 2033.
