The government is also moving forward to develop prospective shale gas potential. According to the Australian Energy Resources Assessment, the potentially recoverable shale gas resources are estimated at 12 tcm out of a total of 250 tcm of prospective shale gas resources (Figure 2.15). The largest shale gas deposit is located in the Canning basin in Western Australia, along with other smaller formations in Queensland, South Australia and the Northern Territory. The Northern Territory lifted its moratorium on fracturing in April 2018, and some first drilling is currently targeted for 2019. The Government of Western Australia also lifted its moratorium on hydraulic fracturing in November 2018, but limited activity to existing petroleum titles – accounting for only 2% of Western Australia’s territory.

Figure 2.15 Natural gas produced, remaining and potentially recoverable, Australia

Note: Produced and remaining gas as of 2014.

Source: Geoscience Australia (2019), Australian Energy Resources Assessment, https://aera.ga.gov.au/.

The country has a strong remaining conventional resource base and prospective shale gas potential for a supply source in the longer term.

To further encourage the natural resource sector to adopt a longer-term policy approach, the Australian government released the National Resources Statement in February 2019 (DIIS, 2019). The statement includes a goal to develop new resources, industries and markets and remove barriers, and also to attract investment by delivering a globally attractive and competitive investment destination for resources projects.

Other emerging Asian economies

Despite the strong demand growth forecast in the other emerging Asian economies (see Chapter 1), domestic natural gas production in this region is anticipated to plateau at 310 bcm/y during the forecast period (Figure 2.16).