Demand for liquefied natural gas (LNG) in Asia is growing and that is positive for Australia, but there are issues with competition and high wage costs are a concern, the Premier of Western Australia said Monday.
According to the International Energy Agency, Australia is the third largest LNG producer in the world after Qatar and Malaysia. Australia hopes to become the world's biggest LNG producer within the next few years.
"The demand for liquefied natural gas in Asia is growing very strongly so market conditions are positive," Colin Barnett, Premier of Western Australia told CNBC on the sidelines of an oil and gas conference in Perth.
"As a state, we produce 20 million tons of LNG, that's about 8 percent of world supplies. And we will be producing close to about 60 million tons, a trebling in the industry by the end of the decade," he added.