Australia stands as one of the world's most important non-OPEC energy producers and a structurally critical supplier to the Asia-Pacific region. The country is among the largest LNG exporters globally, alongside Qatar and the United States, and a primary coal exporter — making Australian energy production particularly relevant during the ongoing Persian Gulf supply disruption that began in February 2026.
Current state (May 17, 2026): With Persian Gulf LNG flows substantially disrupted as part of the Iran war and Strait of Hormuz closure, Australian LNG exports to Japan, South Korea, and Taiwan have become more central to regional energy security. Curtis Island terminals (Queensland) and the North West Shelf project (Western Australia) are operating at sustained high utilization. JKM and TTF benchmarks remain elevated as Asian utilities and European utility buyers compete for available cargoes.
Australia's LNG export capacity sits at approximately 88 million tonnes per year (mtpa), with major projects including Gorgon, Wheatstone, Ichthys, APLNG, GLNG, QCLNG, North West Shelf, Pluto, Prelude (floating), Bayu-Undan, and Darwin. These projects collectively serve as the principal supply path for Northeast Asian gas demand during disruptions to Middle East flows.
Coal markets are similarly affected. Australia produces approximately 470 million tonnes of coal annually across thermal and metallurgical grades, with Newcastle thermal coal benchmarks acting as the regional price reference. With European utility buyers seeking alternatives to gas-fired generation during the Persian Gulf disruption, demand for Australian thermal coal — particularly from Asia-Pacific buyers who in turn back-source from Russian and Indonesian alternatives — has remained elevated.
Australian oil production is more limited — around 250,000 barrels per day of condensate and light crude — but Australian refining capacity at Geelong, Lytton, and Kwinana plays a regional role for domestic gasoline and diesel supply. With international product prices elevated, Australian refining margins have been strong through the disruption period.
Currency dynamics are also relevant. The Australian dollar has appreciated against trade-weighted benchmarks as commodity-linked currencies have generally outperformed during the energy supply disruption. RBA monetary policy has held steady at recent meetings as inflation pressures from energy have been counterweighted by easing in other goods categories.
Continuing coverage: Oil Prices · Geopolitics · Natural Gas.