“With a number of countries looking to secure sources of cleaner fuel for power generation, demand for Australian LNG exports is expected to increase,” ABARE said.

“In response, Australian production of LNG is forecast to increase substantially in the short term.”

Gas production as a whole will rise by 13%, thanks to more output from the Darwin LNG and Casino gas projects, and the start-up of the Otway Gas Project and the fifth North West Shelf train early next year.

Meanwhile, production of crude oil and condensate is forecast to grow about 10% to 26.9 gigalitres in 2006-07. In the second half of calendar 2006 alone, production is expected to be up 7%.

“This strong growth has been driven largely by the start-up of production at [Woodside’s] Enfield project in the Carnarvon Basin,” ABARE said.

“Other developments that will support higher oil and condensate production include [AED Oil’s] Puffin oil field in the Bonaparte Basin.”