Today’s release of the Australian Energy Market Operator’s (AEMO) 2020 Gas Statement of Opportunities (GSOO) confirms the actions taken by the industry to bring more gas into the domestic market will ensure domestic gas supply to at least 2023.
While the GSOO’s analysis has in many cases been overtaken by the onset of the COVID-19 pandemic, APPEA Chief Executive Andrew McConville said the GSOO finds the industry has increased substantially the flow of gas to the east coast domestic market and this will continue into the future.
“There have been a significant number of new gas supply agreements announced in since 2017 providing gas to domestic customers,” Mr McConville said.
“The industry’s operations are more essential than ever in the face of the COVID-19 pandemic and the Australian natural gas industry is responding to the personnel and operational challenges posed by the COVID-19 to ensure those vital energy supplies are maintained.
“APPEA members are taking all steps necessary to ensure the production and delivery of gas supplies continues. This week the domestic market spot prices have fallen to multi-year lows.
Mr McConville said while the forecasting results in the GSOO have in many cases been overtaken by the situation we now face, the core messages remain relevant.
“This year’s GSOO, as with many of the previous GSOO, noted further action by both industry and governments will be required to bring more gas into the east coast domestic gas market beyond 2024,” Mr McConville said
“The GSOO forecasts supply reducing in the major consumer states of Victoria and NSW over the next few years as legacy fields decline. While Queensland and NT are increasing supply, more needs to be done closer to the demand centres of Melbourne and Sydney.
“The GSOO finds that meeting demand over that period will require substantial and ongoing industry investment to commercialise existing reserves and resources and finding new sources of supply.
“With exploration at record low levels, low oil prices and the COVID-19 pandemic meaning both gas demand and gas supply face challenges, the GSOO’s analysis reinforces how vital it is for all governments to support developing new gas supplies as quickly and as cheaply as possible.”