Westpac: LNG Platform Skewed Australia Q2 Construction Data

--Floating LNF Platform Left for Western Australia from South Korea on June 28

By Sophia Rodrigues

     SYDNEY (MNI)  - The sharp jump in construction work done in the second

quarter may be due to single large import, a floating Liquefied Natural Gas

platform, Westpac economists say.

     In his "first impressions" commentary on the construction work done release

for the second quarter, Westpac economist Andrew Hanlan said the engineering

figure may have been inflated "by the importation of Prelude, a floating LNG

platform" which set sail for Western Australia from a South Korean shipyard on

June 28.

     He noted the data, published by the Australian Bureau of Statistics earlier

Wednesday, showed that private infrastructure work jumped 32.2% in the quarter,

up A$4.0 billion, fully accounted for by construction work in Western Australia,

which leapt 55.6% or A$4.1 billion.

     Handlan said he expected the ABS to amortize the value of the platform over

the time that it was constructed which has been the approach in recent years and

avoids these spikes.

     "This would see a relatively smooth rise in investment and in imports," he

wrote in  a note.

     Hanlan also noted that the import data, as reported in the monthly

international trade release, did not show a spike in June.

     "At this stage we are inclined to expect the ABS will revise the import

data with the release of the Balance of Payments on Tuesday September 5, a day

ahead of the National Accounts," he said.

     The ABS could not be reached for comment.

--MNI Sydney Bureau; tel: +61 2-9716-5467; email: sophia.rodrigues@marketnews.com

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