Coal seam gas extraction is expected to be one of the five industries to soar in 2015 with the industry undergoing a significant transformation, according to research company IBISWorld.
An IBISWorld industry report said revenue for the coal seam gas extraction industry is forecast to rise by 148 per cent in the next 12 months to $1.83 billion.
The report said while coal seam gas projects have become more viable due to new and improving extraction techniques, it is the development of export capabilities that is expected to drive rapid industry growth.
IBISWorld senior industry analyst David Whytcross said the opening of the domestic east coast gas market to the international market is expected to push gas prices higher.
“Particularly as Australia is well positioned to meet strong demand from Japan, China and South Korea, which are the world’s three largest natural gas importers,” said Mr Whytcross.
Supply to these markets from considerable coal seam reserves in Queensland, he said, will be boosted in 2015 as the Curtis Island LNG plant becomes operational.
“Once operational, the Curtis Island LNG plant will be the world’s first project to turn coal seam gas into liquefied natural gas, which will be a boon to operators of newly developed coal seam gas fields in the Cooper Basin,” said Mr Whytcross.
The other industries expected to perform well in 2015 are online grocery sales, fast fashion, private equity and hydroponic crop farming.
The report said as consumers become more adept at using online stores and gain more experience buying items online, online shopping expands.
“Such a phenomenon is anticipated to occur for online grocery stores in 2015, leading to revenue growth of 14.6 per cent for the year,” said the report.
In terms of fast shopping, the report expects international operators including Zara, Topshop, H&M, Uniqlo and Forever 21 to experience strong revenue growth in 2015.
Private equity in Australia, it said, had a highly successful year in 2014, and is likely to continue in 2015.
IBISWorld said while hydroponic crop farming holds a relatively small place in the overall scheme of Australian agricultural production it is undergoing strong and steady growth.
The five industries the report expects will decline in 2015 are petroleum exploration, cigarette and tobacco product manufacturing, electricity distribution, mining and construction machinery manufacturing and motion picture and video distribution.
The report said a severe crash in oil prices means investment returns from petroleum exploration activities are drastically reduced.
Former CEO of ING Direct Vaughn Richtor will assume the role of chairman at MyState following the retirement of Miles Hampton, the compan...