Gas position has deteriorated in a year according to AEMO update
14th of December 2023
The Shadow Minister for Energy Dr Steve Thomas says the latest Gas Statement of Opportunities for Western Australia released by AEMO today highlights a growing demand for more gas and an increasing shortfall of supply.
He called on the Cook Labor Government to use the bad news as an opportunity to highlight and enhance the WA gas industry as the transition fuel of the future, not just for Western Australia but for the world.
“It is time for WA to be a centre of excellence for gas field development and gas production, and to get the approvals systems right” Dr Thomas said.
“That has to apply to both the domestic and export gas markets.
“WA gas is the only transition fuel that can get us to a low carbon future at this point, and this report plainly says we need more of it than we can currently supply if we want to keep the lights on and air conditioners running as we get there.
“One year ago, AEMO’s 2022 report said that there would be a “small deficit” of gas in WA of 45 Petajoules (PJ) over the four years to 2026.
“One year later, today’s report is suggesting we will be short 105PJ up to 2026, so we have more than doubled the shortfall over a shorter period.
“That is not a good result for Western Australia. I hope this is not the reason the draft report of the Parliamentary Committee looking into domestic gas is coming out 2 days before Christmas.
While the majority of the increase in demand comes from the private sector, AEMO predicts an increasing need for gas fired electricity generation for the South West Interconnected System (SWIS).
Page 9 of today’s report says:
“Gas demand for gas generation of electricity in the SWIS is forecast to grow at an average annual rate of 5.8%, from 201 TJ/day in 2024 to a peak of 315 TJ/day in 2032.”
“Of the 274 TJ a day increase in demand 40% is coming to feed the SWIS and 60% the private sector” Dr Thomas said.
“That is based on the assumption that the Government will be able to close down its coal generators on its current timeline, but they have already extended one coal unit and will have to do the same to others on their current energy trajectory.
“I have said repeatedly we need more gas generation capacity to underpin the SWIS and maintain supply as we close down coal capacity, and this report simply reinforces that need.
“Another 300MW or so of gas generation into the SWIS is looking more and more necessary if we want to keep the lights on during the transition.”
Media contact: Dr Steve Thomas 0427 908 717