PIAC Gas Masterclass A government perspective Adrian Amey Manager - - PowerPoint PPT Presentation

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Aug 23, 2022 26 likes •167 views

PIAC Gas Masterclass A government perspective Adrian Amey Manager Supply & Networks Policy 15 April 2014 Understanding national energy policy Energy is primarily a State & Territory policy responsibility National

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PIAC Gas Masterclass

A government perspective

Adrian Amey – Manager Supply & Networks Policy – 15 April 2014

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Understanding national energy policy

§ Energy is primarily a State & Territory policy responsibility § National energy policy is set by agreement of all jurisdictions - opt in and opt out provisions do exist § Legislation is passed by SA Parliament then adopted by other States & Territories § The Commonwealth Government only has legislative control over offshore resources and international trade § Australian Constitution & CoAG agreements protect “free and fair trade of gas” across borders

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Who owns the gas

§ Resources including gas belong to the jurisdiction they are found in – Cooper Basin gas belongs to SA – Gippsland Basin gas belongs to VIC – Bowen Basin gas belongs to QLD § Companies pay royalties to States and Territories for the resources they recover & sell § Governments cannot prevent gas passing through them to another State or Territory

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2013 - South East Australia Gas System

§ Main production facilities in Queensland, South Australia and Victoria

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Eastern Australia Total Gas Demand

2013 GSOO

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Eastern Australia Growth in Production

2013 GSOO

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Basic statistics

Unit Conversion Joules 1 giga joule = 1000 mega joules = 1,000,000,000 joules 1 tera joule = 1000 giga joules = 1,000,000,000,000 joules 1 peta joule = 1000 tera joules = 1,000,000,000,000,000 joules 1 peta joule = 910 million cubic feet = 1,000,000,000,000,000 joules

§ Total NSW Consumption was 162 peta joules in 2012 – 13 § Average NSW household uses 23 giga joules per year § Total NSW Residential Consumption is 25 peta joules per year § Residential consumption only 15% of total with approx 1 Million customers

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5 162 406 205 205 134 74 103 19

50.0

100.0 150.0 200.0 250.0 300.0 350.0 400.0 450.0 Peta Joules (PJ) NSW + ACT VIC QLD SA TAS

Gas Production and Consumption by State in 2012 - 13

Production Consumption

Consumption (ex Qld)

489 peta joules

Production (ex Qld & SA)

411 peta joules

Shortfall (if all Qld & SA gas goes to LNG)

78 peta joules

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No NSW CSG

§ No NSW CSG – gas flows to Qld

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NSW in 2018 – No New CSG

2013 GSOO

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NSW CSG

§ NSW CSG – gas flows to both NSW & Qld

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NSW Gas Supply 2018 – AGL & Moomba

2013 GSOO

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NSW Gas Supply 2018 – CSG

2013 GSOO

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The Future of Gas

§ East coast gas demand to increase threefold by 2018. § LNG export is driving demand growth – international contracts replacing domestic contracts. § Over $60b invested into Eastern Australia LNG facilities & CSG resources. § Queensland has committed to development and is seeing significant economic benefits. § NSW doesn’t have any production to reserve and other States have stated they will not intervene in the market to direct gas to NSW. § Declining existing resources and limited production in Victoria. § Significant risk of under supply to NSW economy & residential consumers. § Consequential risk to higher wholesale gas prices flowing through to retail gas and electricity prices.