Gas development needed for future demand: AEMO

A projected decline in gas production could result in a shortfall of gas-powered electricity generation (GPG) in Australia’s south eastern states, according to the Australian Energy Market Operator (AEMO).

AEMO’s 2017 Gas Statement of Opportunities Report (GSOO), intended to assess the adequacy of gas infrastructure, reserves and resources to meet demand in eastern and south-eastern Australia to 2036, outlines that gas producers have forecast annual production to decline by 122 PJ, from 600 PJ in 2017 to 478 PJ in 2021.

Based on this information, AEMO advises additional production will be required to meet the needs for GPG 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 Chief Operating Officer Mike Cleary.

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