Oil price slump threatens Australia LNG projects

Sydney

AN EXTENDED slump in oil prices threatens an expansion of the liquefied natural gas (LNG) industry and risks cutting returns for project developers in Australia, poised to become the world's biggest supplier of LNG.

The nation's exports of natural gas converted to liquid are linked to the oil price, which has declined from a June peak. Brent crude, the global benchmark, reached an almost four-year low of US$82.60 a barrel last week.