Capstone Green Energy Corp (fka CGRNQ)

[Seasound]

LNG Export Race to Hit Supply The Australian

Major research to be released today shows the Gladstone region in central Queensland could face a gas shortfall from next year because demand from proposed projects in the area, which include Rio Tinto Alcan's Yarwun refinery expansion, exceeds the capacity of the pipelines to supply the gas.

"Competition for gas supply may impact the timing or scope of the large industrial projects currently proposed in Gladstone," says the Australian Energy Market Operator report.

Brisbane also faces possible insufficient gas supplies from 2018 and Townsville from 2021 unless extra pipeline capacity is built.

While there are sufficient gas reserves to meet demand, if these are not developed quickly enough to meet Asian-led demand for LNG exports, supply shortfalls to both the export and Queensland domestic markets could be seen by about 2016.

The above excerpt is about the only "good" info for us that I see in the article.

The AEMO modelling reveals that there will be no need for baseload gas-fired generation -- known as combined cycle gas turbine (CCGT) plants -- for at least a decade.

This is an extraordinary turnaround from 2010, when AEMO was forecasting large-scale CCGT plants would be built across the national electricity market.

The new modelling finds that, to compete with coal, CCGT would need a higher carbon price and lower gas prices; it also cites much lower electricity demand growth and competing investment in wind farms. However, there is still a need for open cycle gas turbine (OCGT) generation to supply power occasionally when demand is peaking.

My, my. How fast things change.