Did anyone catch this on ABC yesterday?Gas Shortages on...

Did anyone catch this on ABC yesterday?

Gas Shortages on Australia’s East Coast: A Growing Crisis

Australia’s east coast, particularly Victoria, is facing an imminent risk of natural gas shortages, with potential shortfalls expected as early as this winter. On peak demand days, there may not be enough gas to supply the 2.2 million Victorian households relying on it for heating. Energy experts warn that years of declining domestic gas production, coupled with infrastructure limitations, have left the region vulnerable.

The primary issue lies in the rapidly decreasing supply from Bass Strait, historically a key source of gas for Victoria. The Longford gas plant, which processed around 1,000 terajoules per day just three years ago, now operates at 700 TJ/day and is projected to drop to 325 TJ/day by 2028. While the Victorian government insists there will be sufficient gas overall until at least 2028, peak demand days remain a major concern. The Australian Energy Market Operator (AEMO) has already developed gas rationing plans that prioritize essential services, followed by businesses and residential customers.

Infrastructure challenges further compound the issue. Despite Australia’s vast gas reserves in Western Australia, there is no pipeline connecting them to the east coast. Victoria and New South Wales rely on the Southwest Queensland pipeline, which is already at full capacity. Expanding this pipeline significantly is necessary but will take time and investment.

To address the crisis, several gas import terminals are being considered. In Victoria, a proposed facility in Geelong could supply up to 60% of the state’s gas demand but is awaiting environmental approval. In New South Wales, the Port Kembla import terminal is nearing completion, but suppliers are struggling to secure long-term contracts due to price uncertainties. Industry leaders argue that government intervention may be necessary to ensure energy security, including expanding AEMO’s powers to manage gas supply.

Experts emphasize that time is running out to implement solutions, with delays in regulatory approvals and infrastructure development increasing the risk of a gas crisis. Without immediate action, Australia’s east coast could face severe gas shortages, impacting households, businesses, and the broader economy.