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LNG boom could drive rail infrastructure demand higher

LNG boom could drive rail infrastructure demand higher"

For years, global mining companies pumped millions of dollars into new transportation infrastructure that would efficiently move extracted materials from mine to port.

Now, with the country's mining industry on the downslope, governments around the country are asserting that the next big infrastructure boom will come from the soaring demand for liquefied natural gas. This has drawn many resources companies to Australia, prompting another surge in infrastructure investments.

LNG's growth has been so substantial Deloitte included it in its recent Access Economics report, which discussed the five "super growth sectors" in Australia that will see enormous growth in the next two decades. With such rapid population expansion in emerging economies, countries will need a more affordable source of energy.

This is where LNG comes into play.

"Our gas is a clean and green alternative to coal that points to major development potential for this State [Western Australia] in coming decades," said Mike McNulty, a Deloitte partner based in Western Australia.

Still, before this LNG revolution can thrive, it will require more investments in the necessary infrastructure. Even if this amounts to millions of dollars in projects, the potential for more LNG extraction is immense.

This may lead to about $200 billion worth of infrastructure investments around the country over the next five years.

"I think gas is one of the most exciting things developments that we've had in this country for a very, very long time," Mr McNulty told the ABC.

This isn't to say LNG will replace mining anytime soon. Rather, it will be an additional source of revenue for Australia that will draw several more resource companies to the country.

Interconnect Systems has more than 20 years of cable engineering industry experience and can work with you to find the solutions that best meet the unique needs of your next rail project.

For more information and advice about choosing the right cable and wire harness and composite technologies, contact Interconnect Systems today by calling 1800 812 214.

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