By Jo Nova
In Great Achievements of Government mismanagement, there is a $1 trillion dollar boom in LNG infrastructure around the world, and Australia is one of the top three exporters of LNG, far ahead of the rest, yet we’re about to run out of gas to keep the lights on. It’s so bad we probably have to import gas.
As if anyone needed another example of how small-minded-dictocrat-decrees can screw up a free market and achieve the exact opposite to what they tried to arrange, feast your eyes on Australia.
It takes real planning to start this far ahead and still bollix this up:
Australia was literally the worlds largest LNG exporter in 2020
One of our large energy companies APA Group says a vital Queensland gas pipeline was already running at capacity this winter, and things are so bad, gas power stations here may have to run off diesel, which is stupid on many levels at once. Not only does it lose triple points in Climate-Scrabble, being a dirty high emissions fuel, it’s one of the only fossil fuels we aren’t swimming in. We have 300 years in proven reserves of coal and if we’re lucky, just 32 days of diesel.
Gas shortfall imminent, APA modeling shows
The Australian
Australian households could be hit with “cold showers” due to energy shortages, with the nation’s largest gas pipeline operator warning expensive gas will have to be imported into the country to fill the gap if pending projects are not approved.
New modelling by APA Group shows Australia’s east coast is facing a prolonged period of gas shortfalls, with a vital Queensland pipeline running at capacity over this winter amid ongoing renewable droughts and production disruptions in Victoria.
Officials this winter said the country’s fleet of gas power stations could be forced to run off diesel next year as traditional supplies run dry.
APA Group was all set to start a major expansion of its gas pipeline in 2024 when one of the octopus arms of the government decided it might change the rules. The Australian Energy Regulator (AER) is suddenly saying it might shift from the current light regulation market to a full price management scheme, upon which all the investor-wallets at APA solidified with permafrost. The boss at APA, Adam Watson, said no one could figure out what the return on investment would be, so they suspended the expansion in May. For some reason, the Labor Party couldn’t see this coming.
The Labor government aimed to reduce emissions, cut coal, and make electricity cheaper, instead as Watson says, we’re headed for a market that is less reliable, less affordable and has higher emissions. “Put another way – cold showers, higher energy bills and coal generating our electricity for longer.”
Australia’s biggest gas deposits are 5,000 km (3,000 miles) from most of the people, and only connected by a small pipe or no pipe at all. The Bass Basin deposit is expected to run out around 2027 just when things get hairy on the electricity grid.
Click to enlarge. Geoscience Australia
There is gas to spare underground, but Victoria banned Fracking “Forever” in 2017, and even put it in the State Constitution, just in case the stupid voters changed their minds. Though apparently this was largely a marketing ploy in Green fashion stakes, and legal eagles argued this was probably meaningless. Victoria did quietly allow some gas exploration a few years later, after they had scared all the investors off.
Poetically, just a few months ago NSW banned offshore mining and exploration for gas and oil. Even though exploration is harmless, you never know what people might find. If the punters knew there was cheap gas nearby they might want to use it.
Meanwhile Snowy Hydro has built a whole new peaking gas plant which was supposed to run on 30% Green Hydrogen (that was the only reason the Labor Government supported it). The gas pipeline is not finished yet either, so when it starts, for the first two months it will run on pure diesel. Another green win for Australia!