The head of the patron watchdog stays assured Australia will be capable to keep away from a looming gasoline shortfall this winter.
In a speech to the Australian Domestic Gas Outlook convention, Australian Competition and Consumer Commission head Anna Brakey stated uncontracted exports would imply ample gasoline for the home market.
“Since mid last year, LNG producers have told us they collectively expect to export 88 petajoules of their 146 petajoules of uncontracted gas,” she informed the convention on Tuesday.
“This leaves 58 petajoules of uncontracted gas without the expectation of export, which, if it is produced and brought to market, would leave sufficient gas to address the risk of a shortfall.”
The feedback observe a warning from the Australian Energy Marker Operator that excessive climate might result in shortfalls over winter.
The operator stated long-term shortfalls have been additionally a chance from 2027 with out funding in provide.
However, the ACCC commissioner informed the convention governments needed to do extra to deal with the problem.
“It is not just for producers to prevent the shortfall. Governments also have a role in ensuring sufficient gas supply both immediately and over the longer term,” Ms Brakey stated.
“The uncertainty around the level of demand in 2023 largely relates to the demand for gas-powered generation, which is critically dependent on the prevailing weather, and on the conditions in the electricity market, making it difficult to forecast.”
The shopper watchdog was given powers by the federal authorities to implement gasoline costs, following an intervention out there.
Gas costs have been capped at $12 a gigajoule in response to rising vitality costs, which Ms Brakey stated was cheap.
“This gas price cap has been, and remains, an appropriate response to ameliorate the impact on the east coast gas market of the disruption the war in Ukraine has had on global energy markets,” she stated.
The watchdog stated gasoline would stay a essential a part of vitality markets in coming years whereas emission-reduction measures happen.
“As Australia shifts towards net-zero emissions targets, it is likely gas will increasingly support the transition between coal power generation and renewable energy sources. This means gas remains critical,” she stated.
“However, at the same time, consumers will likely substitute gas for other types of energy, especially in the transition to more renewable energy.”
Resources Minister Madeleine King informed the convention the federal government’s intervention had taken “some of the sting” out of energy costs.
She stated it was supposed the Australian Domestic Gas Security Mechanism would stay a “last resort”, with a voluntary, industry-led resolution the popular strategy.
“I want to make it clear that the government is resolved to work with the gas industry to address the dysfunctions we inherited, which were exacerbated by Russia’s invasion of Ukraine,” she stated.
Source: www.perthnow.com.au
