SYDNEY, Feb. 1 (Xinhua) -- Construction work on large gas projects in Australia fell by almost 25 percent, to their lowest rate since 2010, according to figures released on Wednesday.
Stephen Smith, Deloitte partner and author of the report said although there was "significant" engineering construction over the last three months of 2016, most should be completed over the coming year.
"In the absence of new projects, this will see the value (of our Investment Monitor database) fall to its lowest levels seen since early 2009," Smith said.
But Smith was bullish over Australia's commodity markets and said "impressive gains in world commodity prices" will lead to great results for Australian producers as much of the resource sector has shifted into the production stage of their cycle.
There are concerns however, with Smith issuing a long term warning for the mining sector to not rely on the current high prices, which have been propped up by supply shortages, China's construction boom and increased investor speculation.
"The value of commercial construction has been broadly the same every year since the turn of the decade. More recently there has been an easing in activity, but better approvals data of late suggests that's unlikely to be a long term trend." Smith said.
The current Gorgon, Icythys, and Prelude LNG developments, totalling 100 billion Australian dollars (75.68 billion U.S. dollars) in construction activity, are set to be completed in 2017.
