Australia may need to start importing liquefied natural gas (LNG) for its southern states to avoid shortfalls by 2024 unless the country develops more gas fields and extends pipelines, the Australian Energy Market Operator (AEMO) said on Friday. In its annual gas outlook, the market operator forecast a 35% drop in the supply of natural gas for Australia’s southern states over the next five years.
Manufacturers and households in Victoria state depend heavily on natural gas supply. Meanwhile, gas projects in the state are expected to stop producing between mid-2023 and mid-2024. New South Wales and the federal government have agreed on boosting annual gas supply by 70 petajoules. This new supply can come from LNG imports or a coal seam gas project by Santos Ltd which has been long delayed.
AGL Energy aims to open an LNG import terminal in Victoria by 2022, but it remains to secure environmental approvals. There are two more projects planned in New South Wales but they are still on the drawing board.
