New fuel from the Bass Strait to provide japanese states is on the backburner after a spherical of worth controls to guard households and producers.
Price caps and the prospect of a brand new business code for fairer provide have spooked main fuel firms and buyers, an business convention has been informed.
When the brand new obligatory code – and what future market intervention will seem like – turns into clear, Woodside hopes to have extra confidence to make longer-term investments, chief government Meg O’Neill mentioned.
“When there’s uncertainty around the market in which we’re investing, it gives us pause,” she mentioned.
As governments press forward with extra renewables to convey everlasting power invoice reduction, issues have been raised about near-term fuel provide with producers, hospitals, motels and plenty of households nonetheless massive fuel customers.
The market watchdog says new provide is required within the east coast market, even in an economic system transitioning from fossil fuels.
Gladstone’s huge liquefied pure fuel vegetation – run by Santos, ConocoPhillips and Shell – are underneath strain to ship much less to China, Japan and South Korea and make extra accessible domestically.
The Australian Energy Market Operator has warned of fuel provide dangers for the southern states this winter and says funding is required now to verify there’s sufficient fuel from 2027 onwards.
Ms O’Neill mentioned latest “modifications” to cost caps have been encouraging however the provide downside has not been solved.
“The challenging reality is that the Bass Strait asset, which we have a 50 per cent stake in, or mature assets that are in decline, they’re going to provide year-on-year less gas into the market,” she informed reporters.
Ms O’Neill mentioned extra fuel can be wanted as coal-fired energy stations shut down.
Oil and fuel analyst Saul Kavonic informed the Australian Petroleum Production and Exploration Association convention the value caps have been a mistake.
Generous tax credit linked to carbon seize within the United States might additionally see Australia miss out on funding {dollars}.
Plans for carbon seize and storage (CCS) at Woodside’s depleted Angel discipline off the northwest coast of Western Australia have stalled, regardless of greenhouse fuel permits.
Critics dismiss carbon seize and storage as a licence to ramp up emissions and argue the expertise is just too pricey in comparison with different strategies.
Chevron’s Gorgon Gas Plant in WA – the most important try at a CCS challenge on the earth – is a “big, expensive failure”, in accordance with the Clean Energy Council.
Australia’s subsequent main storage challenge is Moomba, a three way partnership between Santos and Beach Energy.
“It works”, Ms O’Neill mentioned of the much-maligned expertise.
Source: www.perthnow.com.au
