Australian unconventionals - where next?

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04 June 2019

Australian unconventionals - where next?

Report summary

Eastern Australia now relies on coal seam gas (CSG) for its domestic gas supply. In 2018, CSG accounted for two-thirds of total east coast gas production. Australia has seen a rapid transition from relying on conventional resources to relying on unconventional gas supplies. However, as legacy conventional supply sources mature and decline, and CSG resources have been developed for LNG export, the domestic gas market has tightened. This has driven prices up and led to plans for gas imports. It is the resources beyond the LNG projects that will need to be developed to ensure future supply to the east coast gas market. Our indicative economics show that alternative CSG resources, Cooper Basin deep coals and Beetaloo shale all have higher wellhead breakeven costs than existing conventional supplies.

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