More gas will be made available to the domestic Australian market with an extension provided to gas producer APLNG, the Department of Climate Change, Energy, the Environment and Water (DCCEEW) has announced.
The gas supply commitment was due to expire in 2025 but will now be extended to 2029.
The additional supply provided through the Gas Market Code will support affordable gas supply and security of supply for Australian industry and businesses.
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This variation includes volume commitments to a maximum of 10PJ a year for 2026-2029, providing up to an additional 40PJ for domestic users over the four-year period. 10PJ of gas is enough to entirely support heating and cooking use in about 200,000 homes.
The Australian Energy Market Operator (AEMO) yesterday released its annual Gas Statement of Opportunities (GSOO) report, which it said highlighted the need for new investment in Australia’s central and east coast gas markets to address forecast supply shortfalls.
But Joshua Runciman, lead gas analyst for the Institute for Energy Economics and Financial Analysis (IEEFA), said, “AEMO’s latest analysis clearly shows that government initiatives to accelerate household electrification can reduce gas consumption, and with it, the risks of supply gaps.
“Further government support for residential and commercial gas users would drive down demand even further, addressing supply concerns and freeing up gas for Australian industry, thereby ensuring we keep Australian manufacturing jobs in Australia.
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“AEMO’s forecasts of stable industrial demand are at odds with the ACCC’s most recent report, which highlights the risks of a hollowing out of industrial demand due to challenging market conditions. While AEMO continues to focus on new gas supply to meet demand, IEEFA analysis shows that further falls in residential and commercial gas consumption will go a long way to ensure gas is available at a reasonable price for Australia’s major gas using industries.”
