Saturday 28 March 2020

A Coming Gas Shortage

It seems that the east coast of Australia is facing a shortage of natural gas at the same time that the country is becoming the biggest exporter of  gas in the world, and it all depends on geography.  The gas we export is mined in the remote north of Western Australia while the gas we use in the eastern states comes mainly from the gas field under Bass Strait, separating Victoria from Tasmania.

The problem is that Bass Strait is now an aged and declining gas field and geologists predict it will decline by a further thirty-five percent in the next five years. As a result, work is underway to build a massive gas terminal at Port Kembla to  supplement our gas supply from overseas.   We seem destined to become both an exporter and an importer of gas.

There is plenty of gas in the ground underneath our feet in both New South Wales and Victoria but to access it we would need to employ what is known as " fracking ".  Not only does this interfere with the natural flow of the underground water system it is also capable of causing earthquakes as gas extraction leaves empty cavities deep in the earth.  For that reason, fracking bans are in force in both states.

Natural gas is preferable to both oil and coal in the release of carbon dioxide and many of our coal fired power stations are being converted to gas.  Gas is destined to play a more important role in our lives and it will inevitably gain prominence as the home heating fuel for the average home during the winter months.  The fact that we are facing a gas shortage should be of major concern.

In fact, this problem is finding different solutions in New South Wales and Victoria.  The New South Wales government has put its faith in that gas import terminal at Port Kembla while Victoria has lifted the ban on onshore gas exploration in that state from July, 2023, and that is despite intense opposition from farming interests who fear it will disrupt natural water availability.

Mother Nature has been benevolent in providing Australia with massive amounts of natural gas beneath the part of this continent with the least population density.  The government would be remiss if it does not ensure that local needs take preference over export contracts and how that is delivered to the eastern states is a matter of economics.

One option would be gas pipeline across the vast interior of the country which would need to be cost compared with shifting gas between Western Australia and the eastern states by ship.  That ship option could be quickly brought into reality as the receiving hub is already under construction.
Now that a gas shortage is a known reality it requires the combination of governments involved to settle their differences and agree on a common solution to this energy problem.

The energy needs of eastern Australia depend on just that being achieved  !



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