Little remains from gas implosion
Government coffers have little to nothing to show from $200 billion worth of Liquid Natural Gas (LNG) investment in the past decade.
Australia's gas currently reaches Asian markets at close to the cost of production, leaving minimal returns for investors and creating concern that coal seam gas projects may have to be mothballed.
At the same time as Australia verges on becoming the world’s biggest gas exporter, a 75 per cent collapse in prices means that title will not mean much.
Additionally, given that a lot of long-term contracts for Australian gas are pegged to the price of oil, similarly steep falls in the oil price have hurt LNG exports as well.
Energy analysts say the “slow motion train-wreck” of the gas crash will require some gas projects to reduce production or wrap up entirely.
Monash University researcher Dr Diane Kraal says Australian firms are virtually giving the gas away.
“In terms of revenue from tax, it's very minimal,” she told the ABC.
“I would say at the end of the day Australians are still waiting for cash to come from these LNG projects for much-needed infrastructure in Australia.
“The LNG boom is just another example of a country with a lot of mineral resources that unfortunately haven't been managed that well, in terms of the return to the community.”