The Australian Government has announced it will introduce the first national domestic gas reservation scheme. Its intention is to increase domestic supply and put downwards pressure on prices.
This multi-client report concludes the scheme won’t secure material additional domestic supply for almost a decade. The gas reservation scheme also does not address the critical issue of deliverability during peak demand. Without increasing the capacity of the east coast gas network to deliver high volumes of gas there are likely to be supply shortfalls when gas is needed most. The fix doesn’t fix much.
The report:
- Examines the key principles identified by government for design of the scheme, and how the proposed national scheme is very different from the existing Western Australian domestic gas reservation
- Assesses the likely application of the national gas reservation scheme to LNG projects in WA, the Northern Territory, and Queensland
- Examines the likely impact of the national gas reservation scheme on potential annual and peak-day demand shortfalls, and identifies options to avoid shortfalls
- Identifies implementation risks
- Provides key points for market participants by segment
Like all EnergyQuest reports, this report is grounded in data-led, independent analysis. EnergyQuest does not have any commercial or political agendas to push. Nor does the report make any heroic assumptions about how the current energy system might be or should be transformed. Rather, the report provides an impartial assessment how the reservation scheme is likely to impact markets.
The report’s forecasts and cost estimates are based on forecasts included in EnergyQuest’s East Coast Gas Outlook and West Coast Gas Outlook which are tested against real-world data.
If you would like further information please contact us at admin@energyquest.com.au