Cold weather, coal-fired power outages and a lack of natural gas infrastructure to connect to regional markets has left Australia questioning the value of liquefied natural gas (LNG) exports.


“Much like recent energy crises elsewhere in the world, the situation in Australia is an unfortunate confluence of massive coal capacity outages, combined with a colder-than-normal winter, and years of opposition to gas project developments that might have helped avert this crisis,” Rystad Energy analyst Kaushal Ramesh told NGI.

Coal-power stations and renewables are not inputting power when required, the Australian Petroleum Production & Exploration Association (APPEA) said, triggering a significant and rapid increase in gas-fired power generation, which rose over 50% in the national...