Written by Squadron Energy |
Squadron Energy welcomes today’s statement from the Ministerial Council on Energy and Climate Change, which underscores the importance of ensuring a well-supplied east coast gas market.
“Today’s announcement reinforces the need for practical, market-led solutions that deliver a timely and cost-effective solution to our long-standing gas supply problem and providing affordable solutions for Australian households and businesses,” Squadron Energy CEO Rob Wheals said.
“Port Kembla Energy Terminal (PKET) is the only completed facility capable of delivering new gas supply to New South Wales and Victoria before shortfalls materialise. The terminal has the capacity to meet the entire projected structural shortfall from 2028 and prevent sudden supply shortages from 2026 onward.
“PKET will also introduce much-needed competition into the east coast gas market, unlocking significant and competitive international sources of gas that Australian households and businesses do not currently have access to.”
With global LNG supply set to grow by 50% over the next four years, analysts predict significantly lower LNG prices, reinforcing the cost advantage of LNG imports compared to domestic supply constraints.
By leveraging global supply, PKET will enable NSW and Victoria to access lower-cost gas during northern hemisphere summers, when global demand is lower, securing more affordable winter gas for Australian consumers.
The terminal also provides a cost-effective alternative to expensive new pipelines, allowing domestically produced gas from regions such as Western Australia, Queensland and the Northern Territory to be transported to the east coast without requiring multi-billion-dollar pipeline investments.
Independent forecasts from AEMO and the ACCC confirm that new gas fields and material pipeline expansions will not be developed at sufficient scale or in time to avoid a gas shortfall in the east coast market. And PKET provides a solution that means new gas fields, that will emit carbon emissions for decades to come, don’t need to be developed.
“We look forward to continuing working with Federal and State Governments to deliver the investment certainty Ministers are seeking. It is essential that policy decisions are informed by independent analysis and real-world market conditions ensuring Australia has the gas supply it needs at the lowest cost to consumers,” Mr Wheals said.
