Four new reports providing a snapshot of gas reserves in eastern and south eastern Australia and the costs of gas production and transmission show that projected reserves and resources will be sufficient to satisfy the Australian domestic and international export gas demand.
The reports released today by the Australian Energy Market Operator (AEMO) with analysis provided by Core Energy Group suggests that reserves and resources of natural gas will continue to be dominated by Coal Seam Gas (CSG) development with gas sourced from shale or tight reservoirs emerging as a potential large-scale supply source.1
"These reports provide key information for a booming industry which faces a number of challenges meeting the requirements of local and international markets," said AEMO Managing Director and CEO, Matt Zema.
"Moreover, the analysis assumes that reserves are developed in a timely manner and are available to the market when required," he said.
"There is a relatively small volume of uncommitted proven plus probable (2P)2 reserves and this may put pressure on gas prices when companies look to recontract in the short term," Mr Zema said.
There is currently over 19,000 PJ of 2P uncontracted gas in the market, but most of that gas has been earmarked for either domestic use or LNG export.
"As conventional resources are depleted or used in the LNG export market, more CSG or unconventional gas reserves will be used by the domestic market. This, combined with a large proportion of reserves committed or earmarked for LNG projects, may create challenges for domestic supply and increase the cost of gas for users," Mr Zema said.
Core Energy Group also looked at the cost of production and transmission of gas, which vary significantly across the country. The reports also provide commentary on the potential cost shifts as a result of technological advancements and changes in the political environment.
also looked at the cost of production and transmission of gas, which vary significantly across the country. The reports also provide commentary on the potential cost shifts as a result of technological advancements and changes in the political environment.
All four reports can be found at AEMO’s website:
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