AEMO Gas Forecast: Domestic Consumption Down, Exports Up
The National Gas Forecasting Report, released 10 December by the Australian Energy Market Operator, details the continued reduction in domestic consumption of Gas. This reduction in consumption is expected to average at 0.9% over the next five years.
However, any slight reduction in domestic consumption is to be easily made up for by the Gladstone gas export facilities. For 2015, gas exports accounted 35% of gas produced for the year. This portion is expected to increase to 73.6% by 2020. Once ramped-up, the gas export facilities will more than double the eastern and south-eastern Australia gas markets.
The report also noted that heading into the future the prominence of gas-fired generation will replace existing ageing coal-fired power stations that currently account for 2,000 MW of generation in the National Electricity Market (NEM).
The report also contends that as connectivity to the international markets improves domestic gas prices will increase.
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