PERTH (miningweekly.com) – New data by the Australian Energy Market Operator (AEMO) has shown that new gas resources might be required to ensure that Western Australia had sufficient supply to serve its domestic gas market beyond 2020.
“Our findings highlight a tightening of the domestic gas market in 2021 as supply contracts begin to expire and some existing domestic gas facilities face reserve depletion,” said AEMO’s executive GM for Western Australia, Cameron Parrotte.
“Despite these forecasts, we’ve seen a growth of both committed and prospective supply sources since 2017, and we anticipate an additional 240 TJ/d in new production capacity from 2019. The report also notes that any prospective tightness in the market may be alleviated by the acceleration of production from existing processing facilities or withdrawals from gas storage facilities,” said Parrotte.
A number of committed projects are due to start in 2019, while an additional four are already in the planning phase, which could provide as much as 485 TJ/d in incremental supply if they commence during the outlook period.
Parrotte said that while development plans for these prospective domestic gas supply sources had solidified compared with 2017, they were yet to reach the final investment decision stage.
A positive outlook for commodities over the outlook period was expected to lift gas demand, as new gas-consuming mining and minerals processing projects commence.
The Australian Petroleum Production and Exploration Association (Appea) on Friday said that the 2018 Western Australian Gas Statement of Opportunities (GSOO) report confirmed the Western Australian government had made the right decision to lift the moratorium on hydraulic fracturing by existing onshore projects in the Canning and Perth basins.
“The report identifies a need to develop Western Australia’s substantial known offshore gas resources and the critical importance of further exploration onshore in the Canning and Perth basins to meet future gas demand,” said Appea CEO Dr Malcolm Roberts.
“Encouraging a diversity of gas supply – offshore and onshore – will ensure that Western Australian gas consumers have a secure, competitive supply.”
Roberts said it was pleasing to see a modest boost in exploration activity in 2018, although exploration remains at historically low levels.
“Western Australia’s gas producers continue to demonstrate their support for the domestic market as seen by new gas supply contracts announced by Woodside, Chevron and BHP to support the state’s largest gas consumer Alcoa,” he said.
“Western Australian gas consumers are benefiting from the increasing number of gas suppliers and gas supply sources improving the competitiveness of the domestic market.”