A report by Melbourne University’s Climate and Energy College released today, debunks the myth of a gas shortage and shows the federal government’s push for more fracking across Australia is senseless, says Lock the Gate Alliance.
“This report confirms that there is no current or predicted gas supply shortage in Australia and so no basis for the push by the Federal Government and the gas industry to expand unconventional gasfields against the wishes of local communities,” Lock the Gate’s Phil Laird said.
“Escalating domestic gas prices have been caused not by a shortage in supply, but by gas exporters distorting our market and gouging domestic consumers,” Mr Laird said.
The report, titled ‘A Short-lived Gas Shortfall’, which was commissioned by Lock the Gate and The Wilderness Society, finds that:
- The 2018 shortfall predicted in gas supply by the Australian Energy Market Operator on 9th March 2017 to much fanfare effectively ‘vanished’ just 11 days later due to an updated forecast.
- Increased gas prices are not a result of a shortage but due to gas companies exporting much of their gas.
- Wind and solar PV are cheaper forms of bulk energy than combined cycle gas turbines, and in some cases, the cost even of new-build renewable energy and storage is cheaper than generating electricity at existing gas power stations.
- Storage technologies are competitive with open cycle gas turbines in providing flexible capacity.
“The report finds the falling costs of renewable energy and storage technologies, and the increasing gas costs, means that gas will not be a transition fuel in Australia. It’s now a bridge to nowhere.
“This report strengthens the resolve of farmers, Traditional Owners and communities across Australia to protect their water supplies and existing industries from unconventional gas.
“The NSW Government should take note and drop its ill-considered support for the Narrabri Gas Project which is not needed and will only deliver even more expensive gas,” Mr Laird said.