2. State and territorymeasures to increase supplyAustralia’seast...

2. State and territorymeasures to increase supply

Australia’seast coast gas market is increasingly sensitive to external shocks due to atightening supplydemand balance as supply from Bass Strait fields decline.Domestic east coast gas consumption was 578 PJ in 2020. Fordecades, Bass Strait gas has dominated southern production with an averageof around 500 PJ per year. However, the Bass Strait is in decline withjust 352 PJ produced in 2021 and 200 PJ forecast for 2026. This iscausing the east coast to increasingly rely on Queensland supply.

Theimpact of a shortfall will have varied consequences for differentjurisdictions, depending on the nature of household and industryuse. There is a large disparity between the level of gasproduced within some jurisdictions, and the volume of gas they consume. This iscontributing to the challenges the east coast market faces.

Figure3: State and Territory gas production and use 2021

2. State and territorymeasures to increase supply

Australia’seast coast gas market is increasingly sensitive to external shocks due to atightening supplydemand balance as supply from Bass Strait fields decline.Domestic east coast gas consumption was 578 PJ in 2020. Fordecades, Bass Strait gas has dominated southern production with an averageof around 500 PJ per year. However, the Bass Strait is in decline withjust 352 PJ produced in 2021 and 200 PJ forecast for 2026. This iscausing the east coast to increasingly rely on Queensland supply.

Theimpact of a shortfall will have varied consequences for differentjurisdictions, depending on the nature of household and industryuse. There is a large disparity between the level of gasproduced within some jurisdictions, and the volume of gas they consume. This iscontributing to the challenges the east coast market faces.

Figure3: State and Territory gas production and use 2021

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12. What canthe states and territories do to ensure their gas needs aremet during the energy transition?

a. How canthe Commonwealth support the states and territories to do this?
Rogerd

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