Gas Shortfall Fears Fade as Surplus Forecast Brightens for Australia
The Australian Competition and Consumer Commission predicts a gas surplus for the east coast, easing shortfall concerns for now
Australia, Gas Supply, East Coast, Energy Prices, Chris Bowen
Australia: So, it looks like the worries about a gas shortage are calming down a bit. The consumer watchdog just shared that they expect a surplus for the east coast.
The Australian Competition and Consumer Commission mentioned that things in the gas market have improved a little for the first half of 2024. They’re saying this is partly due to a predicted surplus in 2025 and more activity in the market.
They’re forecasting an extra 77 to 112 petajoules of gas on the east coast in 2025, depending on how much uncontracted gas LNG producers decide to export.
However, there’s still a bit of a shortfall expected in the southern states. They’ll need to transport gas from Queensland to keep up with demand.
Even though Australia is one of the top gas exporters globally, there have been ongoing concerns about meeting local needs. The report noted that the supply-demand situation is looking better, mainly thanks to increased production from Queensland.
Domestic gas prices are also softening, which is a relief. This is due to better supply and lower international prices, but they’re still higher than what we saw before 2022.
Energy Minister Chris Bowen is on it, saying the government is focused on creating a stable electricity grid and making energy cheaper with more renewables. He mentioned that gas will be there to support the grid when needed.
Bowen also pointed out that for a decade, the previous government ignored warnings about potential gas shortages, which led to some serious issues in the energy market back in winter 2022.
Now, he claims the current government has turned things around, adding an impressive 600 petajoules of domestic supply, enough to power east coast generators for six years, and securing gas supply until 2027.