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Australia says no longer faces natural gas shortfall before 2030

Gasoil News - Published on Tue, 26 Jun 2018

Image Source: ET
Reuters reported that Australia no longer faces a looming gas shortage, thanks to government pressure on exporters to divert gas into the domestic market and reduced demand forecast for gas-fired power, according to the latest estimates from the nation's energy market operator. The Australian Energy Market Operator said in its annual outlook for gas "No supply gaps are forecast before 2030 under expected market conditions."

The outlook is starkly different from a year ago, when dire warnings from the market operator about potential shortfalls in eastern Australia from 2018 onward prompted the government to threaten to curb liquefied natural gas (LNG) exports.

The nation's three east coast LNG plants, operated by Royal Dutch Shell, ConocoPhillips, and Santos , averted those curbs by promising to plug the expected deficit.

However, their moves, combined with greater availability of LNG on the global market, the start-up of a new pipeline from the Northern Territory to Queensland, and growth in wind and solar power diminishing the need for gas-fired power, have eliminated the feared shortage.

Mr David Swift, AEMO executive general manager said in a statement that "Alongside international market changes, newly committed electricity generation resources have resulted in a favourable increase of gas availability for the east coast market."

Mr Swift said that more than 4,000 megawatts of wind and solar power are due to start up in the next two years, which should ease demand for gas-fired power except when renewable generation is low.

Source :

Posted By : Nanda Koijam on Tue, 26 Jun 2018
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