Renewables and batteries delay Australia gas deficit

A projected natural gas shortfall on the east coast of Australia has been pushed back to 2030, according to new forecasts by the Australian Energy Market Operator, as reported by Reuters.

AEMO said the revised timeline reflects several shifts in the energy landscape, including the extended operation of coal-fired power stations, a decline in gas consumption, and the rapid expansion of battery storage capacity across the grid.

Australia’s Minister for Climate Change and Energy, Chris Bowen, emphasised that policy changes and technological developments are strengthening the country’s energy system. “More renewable energy, more batteries and a sensible gas policy are improving energy security and strengthening Australia’s position,” he said.

In December, the federal government introduced measures requiring liquefied natural gas exporters in Queensland to reserve up to 25% of their output for the domestic market starting in 2027. The policy targets major energy companies, including Santos, Shell and ConocoPhillips, which have previously faced criticism for reducing local supply in favour of exports.

According to AEMO, both existing and planned gas production in Queensland are expected to increase in the coming years. In addition, new infrastructure led by APA Group will allow greater volumes of gas to be transported to the southern regions of the country, helping to balance supply and demand.

At the same time, gas use in electricity generation has dropped to its lowest level in two decades, reflecting the growing role of renewables and storage technologies. However, gas remains an essential energy source in several states, particularly for heating and heavy industry, underscoring its continued role in Australia’s energy mix despite the broader transition.

By Tamilla Hasanova