Australia Delays Gas Shortage Forecast to 2028 as Demand Declines

AEMO cites electrification, high prices, and extended coal plant operations as key factors while structural supply risks persist.

The Australian Energy Market Operator (AEMO) has pushed back its forecast for southeastern Australia's gas shortages from 2025 to 2028 due to reduced demand and other factors.
Electrification, high gas prices, and the extension of the Eraring coal-fired power station are credited with reducing gas consumption and delaying shortfalls.
The Albanese government has secured a deal with Australia Pacific LNG to supply 40 petajoules of gas to the domestic market over four years, bolstering short-term supply.
The Coalition has criticized Labor's energy policies, proposing increased gas production and nuclear energy as part of its platform for the upcoming election.
Despite improved short-term projections, AEMO warns of structural supply deficits starting in 2028 as Bass Strait production declines, emphasizing the need for new investments in gas infrastructure.