AusBN - An unexpected rebound in iron ore and coal prices, coupled with a burgeoning LNG market, is set to boost Australia’s energy and resources exports to a record AUS$215 billion in the 2016/17 financial year.
This huge 32% rise on export revenues from the previous year has largely been driven by a sharp increase in gas exports as large-scale LNG projects, such as Chevron’s Gorgon facility, come onstream.
According to the latest quarterly report by the federal government's Department of Industry, Innovation and Science, prices of top export commodities iron ore and coal will start to unwind over the next year.
However, Australia’s rapidly expanding LNG market, buoyed by the first cargo exports from Chevron’s Wheatstone facility, will offset the dip in commodity prices over 2017/18.
Consequently, the federal report predicts that Australia’s export earnings are likely to plateau at $215 billion going into the next fiscal year.
LNG has also been forecasted to overtake metallurgical coal as Australia's second largest resource and energy export in 2017/18, according to the report.