Australia 's exports of liquefied natural gas will triple over the next five years, resulting in higher prices due to temporary supply constraints, a government report said Wednesday.

Australian LNG exports are expected to soar to 63 million metric tons annually by the 2016-17 fiscal year from 20 million tons last year, the Bureau of Resources and Energy Economics said in a report.

In eastern Australia , wholesale gas prices are projected to rise sharply by 2014 as exports begin because of temporary supply constraints as coal seam gas wells ramp up to full production, the report said.

"The linkage between the eastern market and international gas markets along with a competitive domestic gas market should support investment in gas supply and, ultimately, increase the production of gas in eastern Australia ," the bureau said.

Global natural gas production, consumption and trade is expected to increase over the next two decades, it said.

More natural gas will be used to generate electricity in both developed and developing economies in the years ahead, the report said.

Australia is the world's fourth-largest LNG exporter and has substantial conventional and unconventional natural gas reserves.

Resources and Energy Minister Martin Ferguson said the bureau's report confirms that, if left alone, "markets can respond to changes in supply and demand--as they are intended to do."

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