Russell: Australian LNG Investment Is At Risk, But Not As Much As Feared

Political risk in Mozambique is also significantly higher than in Australia, and project developers there may struggle to secure financing from increasingly risk-averse bankers.

Canada is also touted as a source of big LNG volumes, but developments there will have to overcome geographic obstacles in the shape of the Rocky Mountains, native land title issues and environmental activism.

All these issues mean that Australia's LNG future isn't as endangered as the oil and gas companies are perhaps making out.

What is clear though is that costs will at least have to be better controlled and industry, governments and even the labour unions will all have to try harder to get along with each other.

The most likely end result is that while these issues are sorted out, and also while everybody waits to see if LNG demand is going to be as strong as forecast, the timelines for project approvals will start to slip.

The second LNG investment boom in Australia, if it happens, will be a lot more cautious and drawn out.

(Editing by Richard Pullin)