Gas supply shortage will threaten nation’s power supplies

A major gas shortage looms for Australia from next year, posing a risk to electricity supply and security in several states.

Key points:

• AEMO says NSW and SA face power supply risks from 2018
• Liquefied natural gas export is a significant market challenge, it says
• More gas production or quick alternative energy options are urged

An assessment from the Australian Energy Market Operator (AEMO) is warning that, without a swift response, Australia could face a difficult choice — keeping the power on versus cutting gas supplies to residential and business customers.

“If we do nothing, we’re going to see shortfalls in gas, we’re going to see shortfalls in electricity,” AEMO chief operating officer Mike Cleary said.

The analysis said without new development to support more gas-powered electricity generation, modelling showed supply shortfalls of between 80 gigawatt hours and 363 gigawatt hours could be expected from summer 2018/19 until 2020/21.

Widespread shortages are predicted to hit New South Wales and South Australia first, then Victoria in 2021, and Queensland between 2030 and 2036.

AEMO said the anticipated shortfalls would breach its reliability standard, which was an aim to supply at least 99.99 per cent of electricity demand.

The report warns AEMO could be forced to curtail gas supplies to big users in winter next year to prevent a shortage in Victoria and South Australia, unless a pipeline upgrade can be fast-tracked.

Source: Gas supply shortage will threaten nation’s power supplies, AEMO forecasts – ABC News (Australian Broadcasting Corporation)