| Key Takeaway | Detail |
|---|---|
| Australia’s position in global LNG exports | Australia is the world’s third-largest LNG exporter, ranking behind Qatar and the United States. |
| Share of gas production exported | Approximately 73% of all natural gas produced in Australia was exported in 2022–23. |
| LNG export volume in 2022–23 | LNG exports reached 4,541 petajoules (PJ), remaining near record levels despite a slight 2.1% decrease. |
| Trend in LNG exports (first half of 2025) | Australia’s LNG exports fell to their lowest level in four years during the first half of 2025, driven largely by reduced exports from Western Australia. |
| Use of gas for export vs domestic | In the first half of 2025, 83% of gas produced in Australia was used for exports. |
| Domestic gas demand trends | Domestic gas demand continues to fall across eastern Australia, with all major segments seeing reduced consumption between FY2022-23 and FY2024-25, except for the LNG export sector. |
| Western Australia’s domestic gas consumption | Falling demand for gas in electricity generation drove a decline in total domestic gas consumption in Western Australia, coinciding with lower domestic spot gas prices. |
| Victoria’s role in gas supply | Victoria supplied nearly 1,030 petajoules (PJ) of gas to other states from 2017 to mid-2025, making it the primary supplier to southern states. |
| Queensland’s net gas supply to southern states | Queensland supplied approximately 17 petajoules (PJ) on a net basis to southern states from 2017 to mid-2025. |
Australia has long been recognized as a major player in the global energy market, particularly as one of the world’s largest exporters of liquefied natural gas (LNG). Recent data confirms that the country maintains its position as the third-largest LNG exporter globally, trailing only Qatar and the United States. This status is underpinned by substantial export volumes, with approximately 73% of all natural gas produced in Australia being sent overseas during the 2022–23 period.
In that year, LNG exports reached 4,541 petajoules (PJ), a figure that remained near record levels despite a modest 2.1% decrease from the previous year. The majority of these exports originate from major projects such as the North West Shelf facility, where light, sweet crude oil and condensate are also primarily destined for Asian markets—96% of which was exported in 2022–23.
More recent trends, however, indicate a shift in export dynamics. During the first half of 2025, Australia’s LNG exports declined to their lowest level in four years. This downturn was largely driven by reduced activity in Western Australia, where Woodside Energy’s decision to mothball a train at its North West Shelf LNG plant contributed to lower output. Concurrently, Asian LNG imports experienced their steepest half-year decline since 2010, falling by 9%, with China alone seeing a 21% year-on-year drop in imports.
Despite the decline in export volumes, LNG continues to dominate Australia’s gas usage. In the first half of 2025, 83% of the natural gas produced in the country was directed toward export markets. This highlights the limited role of domestic consumption relative to international demand, even as local demand wanes.
Domestic gas consumption has been decreasing across eastern Australia, with all major user sectors recording lower usage between FY2022-23 and FY2024-25. The sole exception is the LNG export sector itself, which remains robust. In Western Australia, the decline in domestic gas use is closely tied to reduced demand for gas-fired electricity generation, a trend that has coincided with falling spot gas prices in the region.
Within the domestic market, Victoria plays a pivotal role in supplying gas to the southern states. From 2017 to mid-2025, Victoria exported nearly 1,030 petajoules (PJ) of gas to other states, establishing itself as the primary regional supplier. In contrast, Queensland’s net contribution to southern states over the same period was minimal, amounting to just 17 petajoules (PJ).
These patterns underscore Australia’s dual identity as both a leading global energy exporter and a nation with evolving domestic energy dynamics. While international demand—particularly from Asia—has historically driven production, recent shifts in regional consumption, infrastructure decisions, and global market conditions are beginning to reshape the landscape. As debates grow over the fairness of current taxation on gas exports and the equitable distribution of resource wealth, Australia’s energy policy faces increasing scrutiny from both domestic stakeholders and international observers.