EASTERN AUSTRALIA'S GAS SUPPLY AND DEMAND BALANCE

Abstract

Concerns have been raised about the capacity for Australia’s natural gas supplies to keep pace with growing demand, particularly in eastern Australia. Specifically, it has been suggested that unless significant infrastructure investment is undertaken now the demand/supply balance situation in eastern Australia will deteriorate quickly as natural gas resources are depleted in the face of strongly growing demand.

The purpose of this study is to examine whether and when supplies in eastern Australia are likely to fall short of growing demand.

A modelling framework was developed by ABARE to examine these issues at a regional level, building on ABARE’s MARKAL model of the Australian energy system. The modelling framework includes representations of potential sources of natural gas and coal seam methane in Australia by basin, existing and proposed pipeline options and regional gas demands. A number of alternative supply side assumptions were also examined to evaluate their impact on the final results, including annual production rates from various basins and the availability of commercial and non-commercial reserves.