(USD 0.42 billion) to build a UGS at a salt mine, with a nameplate capacity of 150 million cubic metres (mcm) to be operational by 2021, reaching 850 mcm after a second phase in 2025 (Argus, 2019b).

In Sichuan natural gas accounts for over 12% of the province’s primary energy consumption, when the national average is around 7% (2017). The province has gas storage of 0.1 bcm with good conditions for UGS (the depleted Wixi Yantian Salt Cave, for example), or the possibility to turn its LNG plant tanks into LNG storage tanks. The Sichuan Development and Reform Commission issued its gas storage facility construction plan in September 2018, with a goal to triple natural gas storage capacity by 2035 from 0.8 bcm to 2.3 bcm (Table 2.3).

Table 2.3. Natural gas production, demand and storage planning, Sichuan province, 2020–35

Note: Values in bcm.

Source: Sichuan DRC (2018), Gas Storage Facilities Construction Plan, http://fgw.sc.gov.cn/sfgw/yqkf/201809/11/content_185194df23ce43e5b40610f39ec63cb2.shtml.

Australia

Australian natural gas production has been increasing at an annual average rate of 16% since 2012. The country’s natural gas production activity is driven by LNG project ramp-up and operations. The recent addition of large LNG export projects drove Australian natural gas production to reach 132 bcm in 2018. This forecast expects an average growth rate of 2.3% per year, to reach 152 bcm by 2024.

According to the government’s resource assessment, Australia has nearly 5 tcm of remaining recoverable conventional natural gas, and around 2 tcm of CBM) (Figure 2.15) (Geoscience Australia, 2019). In order to ensure the long-term supply of both the domestic market and LNG export contracts, government authorities at both the federal and state levels are encouraging the continuous investment and development of natural gas. The Queensland government granted a licence to infrastructure operator Jemena in February 2019 to build the Atlas Gas Pipeline Project, which will connect the Atlas production developments to the Wallumbilla gas hub. It is expected to start operations in 2019. ExxonMobil and BHP took FID in December 2018 to develop the West Barracouta offshore field in Victoria, with the first gas expected in 2021, to supply the Australian east coast domestic market. Moreover, in 2018 the Australian government awarded seven offshore exploration permits off the coasts of Western Australia and Victoria, anticipating further development in the area.

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