Australia's LNG industry expects $23 billion revenue surge

Conflict in the Middle East is driving a significant windfall for the Australian liquefied natural gas (LNG) industry. Updated figures from the Department of Industry, Science and Resources indicate that LNG revenue is now expected to reach as high as $70 billion this financial year, representing a $23 billion increase over previous government forecasts.

The surge in prices follows Iranian missile strikes on a Qatari LNG hub and ongoing disruptions in the Strait of Hormuz, which has impacted up to 20 per cent of the global LNG supply. As gas-dependent nations in Europe and Asia seek replacement cargoes, Australian producers operating outside the Persian Gulf are benefiting from prices that have more than doubled compared to pre-war levels.

Major operators, including Woodside Energy, Santos, and Shell, are seeing their near-term financial outlooks significantly improved. This shift reverses earlier projections that suggested export earnings from terminals in Queensland, Western Australia, and the Northern Territory would decline due to impending new projects in the United States and Qatar.