A few years from now, Australia will become the world leader in the development of liquefied natural gas projects, and LNG could become its third leading commodity export, next to iron ore and coal.

This as business investments in Australia soared 14 per cent in the third quarter, primarily boosted by movements in the liquefied natural gas sector.

According to Canberra-based research company Deloitte Access Economics, projects of A$406.8 billion (US$434 billion) value have been committed or are already in progress as of Sept. 30, up A$49.8 billion from the previous three months. Most of these are liquefied natural gas projects located in Western Australia and Queensland.

Construction has been approved to start next month on the A$29 billion Chevron Corp. Wheatstone liquefied natural gas project in Western Australia, while in Queensland, the A$20 billion Australia Pacific liquefied natural gas project by Origin Energy Ltd. and ConocoPhillips has secured regulatory approval and will start later this year, the Deloitte Access Economics report said.

The presence of these investments will turn Australia into the world's foremost supplier of liquefied natural gas, Dr. Graeme Bethune of resource analysis firm EnergyQuest said during the inaugural Gas 2011 Conference in Sydney.

Bethune said Australia has more than 15 liquefied natural gas projects still under consideration, while liquefied natural gas production is expected to triple within 10 years

"When the current eight projects are completed, Australia will be supplying 10 per cent of China's gas needs, 20 per cent of Japan's needs and 30 per cent of Korea's needs, with major economic and environmental benefits for those countries," he told ABC Rural News. He added that the value of liquefied natural gas exports will increase from the present A$10 billion per annum to more than A$40 billion.

Mining still accounted for 34 percent of all investment projects currently under construction in Australia, according to the Deloitte Access Economics report.

"Amid the extreme short-term volatility that we have seen on share markets and currency markets over the past couple of months, a continued focus on the longer-term picture by investors is comforting. It reflects the level of confidence that investors have in the longer-term prospects of the global and Australian economies," the report said.