It is reported that Australia is leading the world in the development of Liquefied Natural Gas projects, but has been warned Canada and the United States are shaping up as key competitors.

Dr Graeme Bethune of resource analysis firm EnergyQuest made the comments in his keynote address to the inaugural Gas 2011 Conference underway in Sydney.

Dr Bethune says Australia is enjoying the start of the golden age of gas with over 15 projects under consideration and LNG production expected to triple within 10 years

He said that "When the current eight projects are completed, Australia will be supplying 10% of China gas needs, 20% of Japan needs and 30% of Korea needs with major economic and environmental benefits for those countries."

He added that "LNG will join iron ore and coal as a third world-leading Australian commodity export. The value of LNG exports is expected to grow from around AUD 10 billion per annum now to over AUD 40 billion."

The energy company CEO says the sector shouldn't expect all smooth sailing with costs blowouts, government policy changes, natural disasters and climate change legislation.

Dr Bethune also says major domestic gas buyers also face challenges, of higher gas prices, difficulties in obtaining contracts and changing patterns of gas demand. He said that "It's a brave new world for domestic gas, which is facing the triple whammy of LNG, higher costs and climate change policies all at the same time."

(Sourced from www.abc.net.au)