Total gas production in Australia for the year to June 2009 was 1,780 PJ, which the report forecasts to increase by 10 per cent for the 2009-10 year.
The report also notes that while conventional gas accounts for 92 per cent of Australia production, 90 per cent of Queensland’s gas production comes from coal seam gas, which meets over 70 per cent of the market demand for gas in the state.
Gas distribution networks across Australia have expanded from 67,000 km in 1997 to over 82,000 km in 2009. The report noted that this figure is set to increase as investment to augment and expand networks is forecast at approximately $A2 billion in the current access arrangement periods.
Other key findings of the Gas Market Report include:
- Use of natural gas in Australia has accelerated at a rate greater than that of coal; LNG exports are forecast to increase by 13 per cent across 2009-10.
- Australia has the “most ambitious” LNG expansion plans of all countries proposing new liquefaction projects.
- Australia will be the first in the world to develop coal seam gas (CSG) to LNG projects; CSG is Australia’s fastest-growing gas production sector.
- Gas is well-placed to become more cost competitive than coal in a carbon constrained economy.
APPEA Chief Executive Belinda Robinson said that the report also looked at key operational aspects of the market, as well as the dangers associated with inefficient government intervention in competitive energy markets.
“The Gas Market Report finds Australia has enough energy, including gas, to satisfy a growing domestic energy market that places an ever increasing importance on the use of cleaner sources of energy, at the same time as taking full advantage of the export opportunities for LNG,”? said Ms Robinson.
The Australian Pipeline Industry Association (APIA) agreed that the report represented “an excellent opportunity to increase awareness of the role of natural gas”? in the nation’s energy future.
“With more than 250 years’ supply of natural gas, Australia can meet the challenge of reducing carbon emissions. Australia’s production of natural gas is predicted to double over the next two decades, with increased exports and greater use of gas for power supplies,”? APIA Chief Executive Cheryl Cartwright said.
The full report can be found at the APPEA website, at www.appea.com.au