Critical gas warning issued to four states

Australia: So, the competition regulator just dropped a warning about gas supply on the east coast. It looks like states like NSW, Victoria, South Australia, and Tasmania are going to have to lean on Queensland to avoid shortages.

Even though there’s enough natural gas to meet demand, they’re not getting new production up and running fast enough. Traditional sources, like the Gippsland Basin, are running low.

This info comes from the Australian Competition and Consumer Commission’s report on the Gas Inquiry 2017-30. They’re predicting some “small shortfalls” of up to 16 petajoules in 2025 during the winter when demand spikes.

Basically, they’re saying that, just like in recent years, winter gas needs will have to be met by transporting gas from Queensland and using storage facilities.

The report also pointed out that while things are looking a bit better since their last update in July, they’re urging both state and federal governments to make it easier for new gas sources to come into play.

There are a bunch of hurdles, like long approval processes, high costs, and a lack of competition in the gas market, which are making it tough to get new supplies.

Even though forecasts show supply might exceed demand by a good amount thanks to increased production in Queensland, prices are still higher than they were before 2022. This is all tied to the energy crisis from coal generator outages, domestic shortages, and the situation with Russia.

But hey, prices have been dropping since 2022, thanks to lower international prices and more gas availability.

Resources Minister Madeleine King is on board with the report’s findings. She emphasized that having a secure and affordable gas supply is crucial for Australia’s shift to renewable energy, which will rely on gas and battery storage.

She also mentioned that since the Albanese government took over, they’ve added an extra 600 petajoules of gas to the east coast market to help keep prices down.