Gas Import Jetty & Pipeline Discussion

Are you looking at electrification instead of gas?

Are you looking at electrification instead of gas?

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Are you looking at electrification instead of gas?

Starter

You're worried that you'll run out of gas - how about running programs to switch customers to electric appliances so we don't need to use gas for heating/cooking?

3 REPLIES 3

Re: Are you looking at electrification instead of gas?

Interesting to see that the Dutch Shell company (think oil, petrol) are now refocussing their business model on electricity - electricity produced by non-fossil burning means.

Re: Are you looking at electrification instead of gas?

AGL Employee

Hi @jeznag,

 

We’d just like to apologise for the delay in addressing your enquiry – we have received a large number of complex and detailed questions that we need to discuss with a few specialists.

 

This is not the way we want to deal with community concerns and we’re working to be more responsive in the future.

 

We’ll respond to your question shortly.

 

Thanks,

Lachlan

Re: Are you looking at electrification instead of gas?

AGL Employee

Hi Jeznag,  

 

Thank you for your question and apologies for the delay in response.

 

We encourage people where possible to move towards renewable energy sources and more efficient electric appliances. However, this is an expensive move (at a base, this would involve individuals replacing all the gas stove tops and gas water heaters in south east Australia) and for some of our customers, particularly industries such as power generation and manufacturing, almost financially impossible.  

 

There are also businesses, particularly in Victoria where gas was once cheap and abundant, that rely on gas as a feedstock as well as an energy source.  

  

As a retailer, AGL supplies energy to its customers, it does not facilitate the installation of hot water appliances.

We help our customers reduce their carbon footprint by providing them with the tools to make better decisions on their energy consumption. This includes providing data on which of their appliances are using the most energy through our Energy Insights program.

 

AGL also reaches out to certain customers on our hardship program to help replace some of their more energy intensive appliances. While this does have the benefit of reducing carbon footprint, ultimately the goal is to reduce the hardship customer’s bills.

 

Currently, the Victorian State government offers rebates of up to $1,000 to eligible households to reduce their expenses and lessen their carbon footprint. It is not in our commercial interests to offer incentives that are already readily available from the state government.

  

For us, gas is an enabler of energy transition. Over 80 per cent of electricity produced in Australia is sourced from the combustion of fossil fuels. Given the sheer scale, decarbonising the generation sector is likely to take several decades of replacing the existing generation fleet with low-emissions substitute technology such as solar and windfarms. To deliver reliable and sustainable energy at the lowest cost possible requires renewable energy from wind and solar combined with more flexible energy sources, like quick-start gas generation, that can be turned on whenever renewables are not available or don’t meet demand. This mix of technologies can replace AGL’s Liddell coal plant when it closes, reducing greenhouse gas emissions by 7.5 million tonnes of CO2 equivalent per annum. Reliable gas supply is a critical component of this replacement plan.  

  

While we undertake this transition, the Gas Import Jetty is still needed to provide a reliable and secure supply of gas for quick-start gas powered electricity generation which, in turn, is needed to enable a cost-effective energy transition to occur, both for AGL, and for the Australian electricity sector. 

 

There is further discussion on the use of electricity here: https://community.agl.com.au/t5/Gas-Import-Jetty-Pipeline/effects-on-greenhouse-gas-emissions-Ramsar... 

 

Does this answer your question?