Sydney and Melbourne, the capitals of the most populous states New South Wales and Victoria, already face seasonal shortfalls over the winter months as older gasfields offshore are depleted, according to an Australian Competition & Consumer Commission report on Friday.
Supply constraints in New South Wales and Victoria have usually been offset by piped gas from other states, including Queensland. The ACCC report found LNG imports would add flexibility and security of supply.
Despite being one of the world’s top three exporters of liquefied natural gas, Australia has struggled for years to ensure adequate supply for domestic consumption. This prompted the government to overhaul regulations, allowing it to intervene and limit exports of LNG.
In December, construction on Australia’s first LNG import terminal was completed in New South Wales after being developed by billionaire Andrew Forrest’s private venture Squadron Energy.
