Queensland marked 10 years as an liquid natural gas (LNG) exporter in January 2025 and has emerged as a key supplier of LNG, primarily to China. 

Besides boosting Australia’s energy trade with Asia’s largest economy, the industry has left a legacy of higher domestic gas prices, weaker domestic gas demand, lower than expected state royalty payments and poor financial returns for investors. 

In the decade since Queensland started exporting LNG, domestic gas prices have tripled due to the stronger linkage between LNG export prices and domestic gas prices. Prices are likely to remain higher than pre-2015 levels for decades to come. 

Correspondingly, gas demand in eastern Australia has dropped to a 25-year low, with large reductions in demand from the electricity and manufacturing sectors, which tend to be more price sensitive. There are indications gas demand may fall further in manufacturing, electricity and the residential market due to high gas prices, more competitive energy alternatives and government policy incentives.