Re: Why are we exporting gas and then importing gas at the risk of damage to unique wetlands?

AGL Employee

We understand your concerns about potential damage to the unique and environmentally significant area of Western Port.

 

AGL is not a gas exporter and therefore we aren’t in a place to comment directly about the complex gas market situation we are facing.

 

Australia is a major exporter of natural gas; however, most of this gas is not available to the south-eastern states. It has been a difficult realisation for many that the abundant gas supplies Victoria once enjoyed are in decline. Declining production from Bass Strait’s big legacy fields has meant Victoria needs to seriously consider and prepare for alternative sources of supply.

 

Even if the supply of gas from unconventional fields in Queensland was available to the pipeline connecting them with Victoria, Victoria would not be able to supply enough during peak winter gas demand due to the limited capacity of the pipeline. Gas supplies from the North West Shelf are not available to Victoria because there is no pipeline across the Nullarbor.

 

The tightening outlook for gas supply early next decade has required AGL to seek alternate sources of gas supply to meet the needs of our 1.4 million gas customers.