Western Australia is facing a potential gas shortage in the coming years, which could have serious consequences for the state's energy security and economy.
The problem stems from the fact that many of the state's existing gas fields are nearing the end of their productive lifespans, and there has been a lack of investment in new domestic gas fields in recent years. This means that there may not be enough gas available to meet the state's demand in the near future.
According to a recent report from the Australian Energy Market Operator (AEMO), the state could face a shortfall of up to 260 petajoules per year by 2028. This represents a significant gap in supply, as the state currently consumes around 1500 petajoules of gas per year.
The potential shortage has raised concerns about the state's energy security, as gas-fired power plants currently provide around 50% of the state's electricity. If there is not enough gas available, there could be blackouts and other disruptions to the state's power supply.
The shortage could also have economic ramifications, particularly for the state's major industries such as mining and manufacturing, which rely heavily on gas as a feedstock.
Renewable energy sources such as solar and wind power are often touted as the solution to our energy woes, but they are not without their drawbacks. One major disadvantage is that they are not dispatchable or on-demand, meaning that their generation cannot be controlled to meet specific energy needs.
This is in contrast to dispatchable energy sources such as natural gas and coal, which can be ramped up or down to meet energy demands. This unpredictability can cause issues with grid stability and reliability, leading to power outages and other problems.
While renewable energy sources have many benefits, it is important to consider their drawbacks and their limitations as we work towards a more sustainable energy future.
In recent years, there has been growing concern about the impact of coal power stations on the environment and climate change. To address this issue, Western Australia has taken steps to shut down all coal power stations by 2029.
The fun bit....
Gas is in demand.
Gina Rinehart and MinRes understood this and acted to protect the mining business's and secure gas/energy feedstock by taking over ASX listed gas junior WGO and NWE.
October 2021 WA DOM Gas ~$5GJ
May 2023 WA DOM Gas ~$10GJ
Recently TPD MD Colby Hauser mentioned in this interview that $15GJ is achievable.
https://youtu.be/cEAcCudnlxs.
TPD will at a minimum sell 36.5PJ of gas to Santos a year.
Do the maths and enjoy.
TPD current ~$100m market cap.
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