The release of new onshore areas to explore for new gas supply is a positive step to delivering energy security to Western Australia following forecasts of growing demand in coming years.
Australian Energy Producers today said the WA Government’s announcement to release eight blocks in the Canning, Northern Carnarvon, Amadeus and Perth basins for exploration bidding would help ensure affordable and reliable gas supply in future.
Australian Energy Producers WA Director Caroline Cherry said: 'Exploration for new gas supply is the first step to keeping WA’s energy supplies reliable and affordable.
'New gas supply is critical to the state’s future with demand set to tighten in coming years as gas powers WA’s resources and growing critical minerals sector and supports renewables in the South West electricity system as coal-fired power exits.
'Exploration also unlocks community investment and new jobs in regional areas. This release demonstrates the state’s understanding of the importance of new gas to WA’s net zero future.'
It comes as the oil and gas sector calls for onshore projects to be allowed to access export markets, thereby expanding the number of commercially viable projects and unlocking more domestic supply.
A recent report from Rystad Energy found access to larger export markets reduced the domestic price required for fields to become commercial while improving access to financing.
The WA Domestic Gas Policy Study highlighted the growing importance of gas in WA and the need for new supply from areas such as the Perth Basin to address near-term market tightness. Significant new supply was also needed to meet growing demand after 2030.
The Australian Energy Market Operator’s (AEMO) latest Gas Statement of Opportunities (GSOO) said WA domestic gas demand would rise from 1,099 TJ/day in 2023 to 1,278 TJ/day in 2032.
Source: Australian Energy Producers
