Written by Squadron Energy |
Attributable to Squadron Energy CEO Rob Wheals:
“Squadron’s Port Kembla Energy Terminal (PKET) provides the fastest supply solution for east coast gas shortages and has the added benefit of reducing future carbon emissions from new gas fields.
“It also plays a pivotal role in opening up the Australian gas market to the lowest price gas, either domestic or international, which ultimately helps Australian industry and consumers.
“Global LNG supply is forecast to grow by 50% to 200MMt by 2028 dwarfing the domestic Australian market, so it follows that connecting to global LNG markets can put downwards pressure on prices.
“PKET will be operational to bring in capacity for the forecast 2026/27 gas shortfalls and the 2028 structural supply gap. Construction of PKET is more than 90 per cent completed and a new gas pipeline connecting the terminal to the Eastern Gas Pipeline was completed late last year. This is a transitional solution until green hydrogen becomes commercially available at scale.
“New gas supply from new gas fields risks locking in costly assets that will emit carbon for decades to come. Unlike new gas fields or expensive new pipelines which will take years to develop, imported gas is available shortly and will solve for shortfalls when the market needs it.”
