Global natural gas supplies that have reached market or will shortly are greater than in a generation.
These new volumes and the diversity of their sources—US shale gas, Western Canada shale, and offshore Mozambique—offer potential buyers a range of supply options they have not had for some time
Australia, with its high costs especially for labor, is likely to take a back seat to the new supply arenas, at least until its costs come down. There will be no final investment decisions on Australian LNG projects in the near future.
What may limit the new supplies, especially from East Africa and to a lesser extent Western Canada, is lack of infrastructure. Mozambique is a country only recently out of civil war. Canada’s projects, when compared with those in the US, are greenfield, with all the political and investment uncertainties that go with such developments.