The Australian Energy Market Operator (AEMO) no longer forecasts gas shortage before 2030 under the expected market conditions. This stance is quite different from what was published a year ago, when warnings from AEMO prompted the government to threaten to cut LNG exports. AEMO projected that the growth in LNG exports could cut gas volumes for the domestic market by 20% between 2018 and 2021, thus leading Australia to a gas shortage that would threaten domestic power supply.
The risks of shortfall are now over due to changes in the energy market, of which in particular thanks to the introduction of the Australian Domestic Gas Security Mechanism, the greater availability of the fuel and increased domestic commitments to develop alternative power generation sources, helping to reduce the demand for gas-powered electricity generation. According to the AEMO, more than 4 GW of new wind and solar projects are expected to be commissioned in the next two years.
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