The shale gas revolution in the US and the pace of LNG export activity in Australia are driving LNG growth and competitiveness globally, forcing other LNG-producing nations to step up efforts to supply gas to China, Japan, and others.

"The prospect of the US globalising its LNG exports and the result of a global natural gas market has caught more and more attention,” Deloitte global oil & gas leader, Adi Karev, said at the World Petroleum Congress in Moscow.

“New LNG supplies are expected from the US and from Australia, which currently has seven projects under construction with the potential of 80 billion cubic metres a year," he added.

Russia, which previously exported about 38 billion cubic metres of gas per annum to China and has plans to increase its exports, has market observers believing its gas supply will be "blunted by potential LNG exports from North America”, Karev said.

Russia has plans to increase its exports as new suppliers enter the market, he added.

However, issues such as project delays, budget overruns, high capital costs, and high import prices continue to challenge the industry.

Secretary general of the Gas Exporting Countries Federation (GECF), Mohamed Hussein Adeli, agreed that the rise in US shale gas development is causing "more competitiveness for gas”, particularly since most of it is contracted to China.

Looking forward, Adeli forecasts 15% of global gas production by 2035 will be LNG. Its biggest consumer will be Asian markets but the GECF expects Europe to import more LNG than before.

"Unconventional gas resources are more than game changers – they are part of a global revolution," said International Gas Union president, Jerome Ferrier.

However, Australia and the US are not the only countries in the LNG export race. Significant shale gas deposits in the likes of China, Argentina, Algeria, Canada and Mexico could tip the scales in the future.

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