The Department of Industry, Innovation and Science (DIIS) has released the December 2018 edition of the Resources and Energy Quarterly, which states that Australia’s resources and energy export earnings are on track for a record-breaking 2019.
Supported by a weaker Australian dollar in 2018-19, the DIIS expects Australia’s resource and energy exports to hit a new record high of $264 billion, before falling back to $241 billion (the second highest on record) in 2019–20.
The December report further states that Australia’s resources and energy export volumes will likely show firm growth over the outlook period, yet it is expected that the prices of Australia’s major resource commodities will drift lower in 2019–20, due to moderating demand and rising supply.
Coal is expected to overtake iron ore as Australia’s largest resource and energy export in 2018-19, with Australia’s coal earnings set to exceed $67 billion over the period. Despite this, Australia’s iron ore exports are expected to remain high in 2019, increasing from $61 billion in 2017-18 to $64 billion this year.
Gas is also expected to see the largest increase in export value of any commodity this year and is predicted to increase by $19 billion from $31 billion in 2017-18 to $50 billion in 2018-19.
In response to the report’s findings, Minister for Resources and Northern Australia, Matt Canavan said while this strong growth saw Australia overtake Qatar as the world’s largest gas exporter last month, if Australia wants to stay on top the nation will need new investment in the next wave of gas projects.
“Both Qatar and the United States will have new gas production and infrastructure coming on line in future years that will challenge Australia’s lead,” he commented.
“The industry’s strong results can only continue if new investment is encouraged and the development of projects proceeds efficiently,” Minister Canavan said.
The full December 2018 edition of the Resources and Energy Quarterly can be found here.