Running on Empty: How to keep NSW fuelled for the Future

Within five years NSW gas supply will be unable to meet winter demand

AEMO has warned that gas supply in NSW will not meet demand in the winter of 2025. Gas prices have already risen in response to the tight supply, presenting a serious challenge to manufacturers and other users of gas. Sydney gas prices have almost doubled in four years, as traditional gas supplies decline and alternate high value markets for producers (such as LNG) became available. After Hobart, Sydney is forecast to have the highest wholesale residential and commercial gas prices on the east coast. EnergyQuest has recently completed a report on the NSW gas situation for the NSW Business Chamber, Running on Empty: How to keep NSW fuelled for the future. The report recommends that the NSW government: Approve development of the Narrabri gas field by 2020; Begin a program of pipeline and infrastructure upgrades to expand capacity by 2021; Facilitate LNG import terminal construction for NSW to begin by 2022; Appoint a Coordinator to lead work on critical gas projects by 2020.

The report can be downloaded here: