Gas Shortage Threatens Australian Power Sector: AEMO

Australian Energy Market Operator (AEMO) has warned that a shortage of gas could result in a shortfall of available gas-powered electricity generation impacting New South Wales, Victoria and South Australia from the summer of 2018-19.

According to AEMO’s 2017 Gas Statement of Opportunities (GSOO) report released March 9, additional production will be required to meet the needs for gas power generation and residential, commercial and industrial gas consumers. "At a time when LNG export is dominating demand and supply of gas in eastern states, strategic national planning of gas development has never been more critical for maintaining domestic energy supply adequacy across both gas and electricity sectors," said AEMO COO Mike Cleary.

Unless gas supplies increase, AEMO said, average electricity supply shortfalls in eastern and southeastern Australia could be between 80 GWh in 2018-19 and 363 GWh in 2020–21.

Earlier this week, the state of Victoria in southeast Australia enacted a ban on fracking and a moratorium until mid-2020 on onshore gas exploration. 

Shardul Sharma