How the gas shortfall adds up to a crisis

Australia faces a gas crisis that is feeding into spiralling electricity prices and costs for industrial users.

THE MATH ON AUSTRALIA'S GAS CRISIS

* 1901 petajoules of gas expected to be extracted for sale in 2018.

* 1413 PJ needed to meet long-term gas export contracts and exporters' plans to sell on the international spot market.

* At least one exporter is planning to send more gas overseas than contractually obliged - gas that could otherwise be used within Australia.

* 642-695 PJ needed for domestic use (electricity generation plus industry and household use).

* This leaves a shortfall of between 55-108 PJ - about one-sixth of the total Australian need.

* 1 PJ is enough gas to supply residential needs of Warrnambool, Wollongong or Penrith, or a large industrial user for a full year - that makes the shortfall equivalent to 100 regional cities' needs in 2018.

* Prime Minister Malcolm Turnbull will talk to gas exporters Santos, Origin Energy and Shell this week to find out their plans to keep enough gas onshore to meet Australian needs.

* If their plans don't satisfy the government and consumer watchdog ACCC, Turnbull will impose legal restrictions on exports.

* Turnbull is also writing to NSW, Victoria and NT governments urging them to end bans or go-slows on gas exploration and extraction.

* He specifically mentioned the Narrabri gas project Santos wants to develop, now awaiting NSW government approval. It could supply 58 PJ a year.

(Sources: ACCC, Australian Government)


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Source: AAP


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