The ACCC’s updated outlook on gas demand and supply confirms Australia’s east coast faces gas shortfalls as early as 2026.
Written by Squadron Energy |
Squadron Energy’s Port Kembla Energy Terminal (PKET) is the only solution capable of resolving Australia’s looming domestic gas shortage by guaranteeing supply.
PKET is Australia’s only gas import terminal nearing completion. The terminal will meet forecast gas supply needs in the coming years, without the need for new gas fields in Australia.
Squadron Energy CEO Rob Wheals said Squadron Energy notes the ACCC Review of gas supply adequacy in the Australian East Coast markets.
“Australia’s east coast gas supply situation is dire and the ACCC report reflects the need for urgent action," Mr Wheals said.
“A reduced gas supply surplus in the 2025 low season is a red flag we just can’t afford to ignore.
“The market in the short term is very tightly balanced and appears highly unlikely to be able to withstand any disruptions to supply - the situation is getting worse each year with dwindling production in the southern states.
“Gas inventories in winter 2024 were drawn down rapidly leading to a rapid spike in market pricing, with the situation likely to occur again without critical additional gas injection prior to winter 2025.
“Port Kembla Energy Terminal (PKET) offers the only solution to prevent future gas shortages and associated price spikes on the east coast of Australia.
“Our import terminal is nearing completion and the Floating Storage and Regasification Unit (FSRU) is contracted on a long-term charter. There are no other terminals that have been approved, let alone have started construction – that can meet the market shortfall in time.
“Luckily, global LNG markets are going through a period of rapid expansion with a 50% increase in global supplies predicted between 2024 and 2028, just in time to supply PKET.
“Time has run out to develop new gas fields or build new pipelines in time to avert this supply crisis and associated high prices. By bringing in affordable and reliable gas supply through PKET, industry will be able to do business and households will be able to cook and heat their homes.”
PKET will also ensure gas supply for peaking gas generation needed to back-up renewables, as coal generation retires and Australia moves to a low emissions electricity system.
The terminal will have the capacity to supply 500TJ of gas a day - enough to meet nearly all of NSW’s gas needs on a peak day.
