Southern states face a winter fuel scarcity and can depend on extra provide from Queensland.
Considerable storage and transport capability is required to shift the fuel south, in line with an interim report by the Australian Competition and Consumer Commission.
“It is imperative that gas flows from Queensland to the southern states, and that there is enough storage for it,” Commissioner Anna Brakey stated.
High demand is anticipated within the third quarters of 2023 and 2024, nonetheless the report notes it is determined by how a lot fuel producers decide to the Australian market.
The fee described the general outlook for each winters as “finely balanced”.
Pressure on provide will possible ease subsequent yr, however that is determined by a number of components together with surprising disasters similar to floods.
“Weather and electricity market conditions have a strong influence on the amount of gas-fired generation we need in the energy mix, so the demand outlook remains somewhat uncertain,” Ms Brakey stated.
The Australian Petroleum Production and Exploration Association stated the report confirms the trade was fulfilling its dedication to home provide.
It additionally highlights inadequate fuel is being produced in NSW and Victoria the place unsure regulatory regimes and bans had been “stifling investment in new supply”, it stated.
The affiliation’s chief government Samantha McCulloch stated bans, moratoriums and interventions imply hundreds of thousands of NSW and Victorian customers pay an additional $2 per gigajoule each time their state should transport fuel from Queensland.
“The best way to avoid shortfalls and put downward pressure on prices is to bring on new gas supply close to where it’s used because the cheapest gas is the gas closest to the customer,” she stated.
“New supply such as the Santos Narrabri Gas Project, which could supply up to half the natural gas used in NSW homes and businesses, is needed as a matter of priority.”
The fee stated the trade is usually complying with the emergency fuel value cap that was launched on the finish of 2022 in response to rising costs.
Source: www.perthnow.com.au
