Could you please confirm if AGL would consider importing LNG from the United States if it was extracted from shale gas wells (fracked gas) into Australia?
Also, is AGL now considering building an LNG import terminal in South Australia?
Thank you for your question. We have previously discussed the question of international fracked gas here.
Most of the gas produced in the world still comes from traditional sources, not fracking or shale gas. We are most likely to buy gas internationally from these sources such as from Qatar and Africa because it is the same sort of gas that we use in Victoria which relies on the, now declining, traditional gas reserves in Bass Strait.
Port Adelaide in South Australia was selected as one of the shortlisted location options for an LNG Import Terminal in the initial screening assessment.
At the time of the assessment it was identified that to accommodate the proposed Project, the Port Adelaide site would require extensive dredging. This would have had the potential to impact on nearby dolphin breeding grounds. The Port Adelaide site would also provide access to existing gas pipelines. However, access to the wider gas pipeline network to fully serve south-eastern gas markets would require extensive pipeline network modifications, including the reversal of the Moomba to Adelaide Pipeline and the SEA Gas Pipeline, and an interconnection between these pipelines. The cost of these modifications would make the use of the Port Adelaide site commercially unviable. In addition, pipeline capacity constraints to accessing the broader gas transmission network would limit the ability of the Project to supply gas to the south-eastern gas market.