Commentary
The state of Victoria has the most extensive natural gas network in Australia and the highest consumption due to cold weather and the use of gas for domestic heating. Yet the state is able to meet its own needs with gas production while supplying some gas also to Tasmania, South Australia, and New South Wales.
However, for over a decade, experts have been watching the market tighten, such that Victoria relies on importing gas from northern states through the east-coast network during high winter demand. Impending supply shortfalls have been forecast for several years—most recently, the Australian Energy Market Operator predicted the shortfall to hit in winter 2024….