HomeBusinessAustralia's Shift to Gas Imports: A Major Change in Energy Strategy

Australia’s Shift to Gas Imports: A Major Change in Energy Strategy

A New Era for Energy Supply in Australia

Australia, traditionally a leading gas exporter, is preparing to import gas for the first time. Facing a looming supply crisis, the country is set to build a $1 billion terminal at Port Kembla to import liquefied natural gas (LNG). This development, led by Squadron Energy, comes as domestic reserves dwindle and demand grows.

The east coast faces a significant shortfall in gas supplies, with forecasts predicting a 40% drop by 2028. The decline in Bass Strait reserves and the full capacity of pipelines from Queensland highlight the urgent need for new solutions.

Squadron Energy’s terminal will convert LNG back into gas, meeting peak demand for states like New South Wales. While this approach offers flexibility and cost-effectiveness compared to building new pipelines, it has sparked debate. 

Critics argue that the focus should be on developing new gas fields closer to demand centers rather than relying on imports.

Federal Resources Minister Madeleine King emphasizes the importance of minimizing transportation costs and supporting local gas development, although the government is cautious about subsidizing fossil fuels.

Source abc.net

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