RBA says welcome to quarry Australia  

The ABC has an article on the increasing weight of the LNG export industry (including coal seam gas) in Australia's economy - RBA says welcome to quarry Australia.

The Australian economy no longer rides on the sheep's back, but on the deck of a bulk carrier taking iron ore, coal or LNG to Asia.

The Reserve Bank's latest quarterly Statement on Monetary Policy has singled out the resources sector, in particular the Liquefied Natural Gas industry, as the main driver of Australia's future prosperity.

The bank says Australia's LNG production is set to increase three or fourfold within the next four or five years, as the Gorgon, Pluto and planned Queensland coal seam gas projects come online.

The bank's figures show that such growth could lead to 2.5 per cent of Australia's total economic output coming from LNG, up from only 0.5 per cent currently.

"Production increases of this magnitude would likely see the value of LNG exports increase towards a similar share of total exports as for coal and iron ore," the bank noted in its report.

The investment, construction and exports generated by these massive resources projects are forecast to take Australia's growth back to 2.25 per cent over the year to June, and up to 3.25 per cent over the 2011 financial year.