The Australian LNG Industry: Legal and Commercial Challenges
Australia will become the world’s largest liquefied natural gas (LNG) producer by 2018. This chapter explores the development of the Australian LNG industry. It then analyses some of the legal and commercial issues currently being experienced by the Australian LNG industry. In particular, it will evaluate the legal framework, the sale of Australian LNG, innovations within the sector such as floating LNG, coal seam gas (CSG) to LNG and carbon capture and storage, as well as issues structuring the government take through taxes, royalties and local content provisions. The future challenges likely to be faced by the Australian industry will be examined, given the increased competition in the global LNG market, the current over-contracted supply in Australia’s key Asian market and the high production costs of many Australian projects.
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