Key facts
- Australian natural gas exploration investment reached a ten-year high in the first quarter.
- Total investment in the first quarter was $329 million.
- Rystad Energy predicts a 10% rise in gas exploration investment for the full year.
- New South Wales issued its first natural gas exploration tender in a decade.
- Queensland supported an oil project, signaling a focus on energy security.
Australian natural gas exploration investment has surged to a ten-year high, driven by increased demand from Asian markets and a heightened focus on energy security amid global supply disruptions. In the first quarter of the year, investment reached $329 million, with Rystad Energy forecasting a 10% increase for the full year, potentially surpassing $1 billion by 2026. This renewed interest in exploration is attributed to modern techniques de-risking development in frontier and unconventional plays. The state of New South Wales has launched its first natural gas exploration tender in a decade, while Queensland has supported an oil project, signaling a shift in priorities towards energy security over transitioning away from hydrocarbons. Key exploration areas include the Otway Basin, the Beetaloo shale formation in the Northern Territory, and the Taroom Trough project in Queensland, the latter being the first new oil project to receive approval in Australia in 50 years. The Beetaloo Basin alone is estimated to hold 500 trillion cubic feet of gas, with the Northern Territory government aiming to establish it as another LNG production hub.