Australia's Economy
LNG, Coal and the Energy Transition
How Australia became one of the world's largest LNG and coal exporters, the domestic gas price debate, and the challenge of transitioning a fossil-fuel-exporting economy.
Australia is one of the world’s largest exporters of LNG and coal.
LNG boom
- Huge LNG projects in Western Australia and Queensland came online in the 2010s.
- Australia became one of the top LNG exporters, alongside Qatar and the US.
Coal
- Australia exports thermal coal for power and metallurgical coal for steelmaking.
- India is a major buyer of Australian coking coal.
Domestic gas prices
- On the east coast, LNG exports linked domestic gas prices to world prices, raising costs for households and industry.
- The government imposed price caps in 2022-23.
Transition
- Australia aims for net zero by 2050.
- Coal power plants are closing; renewables like rooftop solar have grown rapidly, with one of the highest per-person rooftop solar rates in the world.
- Critical minerals like lithium may replace some fossil fuel revenue.
Dilemma
Exports bring revenue and jobs, but buyers are decarbonising.
The coking coal ship
A ship leaves Queensland loaded with metallurgical coal for a steel plant in Odisha.
Thinking energy exporters avoid high energy prices at home
LNG exports raised Australia's domestic gas prices.
Key takeaways
- Australia is a top LNG and coal exporter.
- India buys Australian coking coal.
- LNG exports raised domestic gas prices.
- Rooftop solar and critical minerals support the transition.
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