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Australian gas market poised for ‘transformation’

Timely delivery of new projects will be vital to avoid shortfalls, AEMO says

Australia’s east coast gas market is “on the cusp of transformation”, the Australian Energy Market Operator (AEMO) says in its 2021 Gas Statement of Opportunities. But rapidly declining production flexibility means there is potential for supply shortfalls in coming years unless new projects are delivered on time. Chief among these developments, AEMO says, is the proposed Port Kembla Gas Terminal (PKGT) in New South Wales. Faith in imports The $250mn ($193.5mn) PKGT project, promoted by Australian Industrial Energy (AIE), is largely responsible for AEMO’s more bullish short-term supply forecast. Its timely startup would, according to AEMO calculations, delay an anticipated gas supply shortfall ...