Liquefied natural gas industry guzzles 13 times gas used by Australian manufacturers

Tuesday 19 August: New Market Forces analysis finds the liquefied natural gas (LNG) industry, including exports, uses 13 times more gas than is consumed by Australian manufacturing.

The research reveals that just 10 industrial facilities account for approximately more than half (50.9%) of manufacturing gas demand in Australia, based on Australian Energy Market Operator (AEMO) data. These facilities are concentrated in alumina and ammonia production.

Five Australian Stock Exchange (ASX) listed companies – Rio Tinto, South32, Orica, Dyno Nobel and Wesfarmers – operate six of the 10 largest gas-using facilities. Gas usage in these facilities contributes significantly to the companies’ climate pollution, reaching up to 66% of scope 1 emissions for mining services and chemicals company, Orica.
The research also finds that new gas supply has failed to lower prices or reduce risk for domestic users, as it is overwhelmingly directed to LNG exports.

Kyle Robertson, Head of Research, Market Forces said:

“Manufacturers guzzle a lot of our gas but 13 times more is gobbled up, turned into liquefied natural gas and sent overseas.”

“Australian manufacturers including Rio Tinto, South32, Orica and Wesfarmers operate the biggest gas using industrial facilities and face serious financial risks in coming years if they fail to transition their operations towards clean technologies.”

The analysis finds the top five gas guzzling manufacturing companies could face a huge $1.3 billion bill cost for carbon credits over the next 10 years to ‘offset’ their emissions if they fail to reduce their reliance on gas.

Market Forces estimates that these five companies’ gas use amounts to 54 million tonnes of carbon emissions over the next decade, equivalent to running Australia’s biggest coal-fired power plant Eraring for nearly four years.

The analysis finds that by 2030 Australia’s five largest ASX listed gas users must increase investment in clean and renewable energy technologies by three to five times their current levels, as recommended by the Organisation for Economic Cooperation and Development (OECD).

Rio Tinto and South32 spent just 3% of their capital expenditure on decarbonisation, with Orica slightly higher at 5% and Dyno Nobel at 6%, accounting for a very small portion of their overall spending. Wesfarmers does not disclose decarbonisation capital expenditure in its annual reporting, and must address this glaring omission.

Non-iron metals and chemical production, dominated by alumina and ammonia, account for nearly two-thirds (64%) of the gas used by the Australian manufacturing sector.

“Australia’s biggest manufacturers, particularly alumina and ammonia producers, need to immediately step up and invest much more in the transition to renewable energy,” said Mr Robertson.

“Australia’s largest gas users have a duty to heap more pressure on governments to substantially increase funding and enable more clean energy, including solar and wind power, storage and transmission infrastructure for the benefit of manufacturers, the broader economy and our communities.“

For media inquiries and interviews contact:
Antony Balmain, +61-423-253-477, [email protected]

Note to Editors:

Additional key findings

• The oil and gas industry is the biggest contributor to Australia’s industrial emissions. Oil and gas facilities account for over half of all top 20 highest emitting Safeguard Mechanism (SGM) facilities and 32% of total SGM baseline emissions. Expanding gas supply would exacerbate this issue and further tighten the Australian Carbon Credit Unit (ACCU) market, driving up costs for other facilities operating under the Safeguard Mechanism.
• Whilst the Australian Renewable Energy Agency (ARENA) has made significant investments in research and technology for decarbonisation, the Australian government must significantly ramp up clean transition spending, including for the manufacturing sector, or risk being left behind in a low-carbon economy.

Analysis Methodology

The analysis involved compiling the first ever top 30 list of industrial facilities based on gas use in Australia in the financial year to 30 June 2025 (FY25), based on available data and disclosures, including the Gas Bulletin Board WA (GBBWA), the Australian Energy Market Operator’s, AEMO Gas Bulletin Board and company disclosures.

The 10 largest industrial gas-using facilities in Australia

Following an analysis of various disclosures from the Australian Energy Market Operator’s (AEMO) Gas Bulletin Boards (GBB), Market Forces has produced a list of the largest industrial gas facilities in Australia in the financial year to 30 June 2025 (FY25).

Largest ASX-listed gas users in Australia