PERTH – The Australian Energy Market Operator has urged for more investment in gas production to meet energy demands post 2027, and has warned of potential supply constraints this winter in the southern states of Australia, under certain conditions.
“While production capacity commitments have increased for 2023 compared to the 2022 GSOO and several key infrastructure projects are on track for delivery, there is forecast to be a 16% reduction in production capacity this winter compared to 2022 in Victoria, which increases supply pressure in the southern regions,” he said.
“The scale of forecast gas consumption varies across AEMO’s scenarios. As policy and consumer preferences to switch to alternate energy sources are unclear, so the preferred timing, type and size of gas supply and any supporting infrastructure required is uncertain. All future scenarios, however, forecast the long-term need for additional supply.”
“Existing instruments, such as the heads of agreement with LNG exporters, which includes the Gas Supply Guarantee, to offer additional gas into the east coast domestic market in 2023 will help in managing supply adequacy,” he said.