Gas in Australia

Australia has vast gas resources, with 400 trillion cubic feet of estimated reserves (enough to power a city of 1 million people for 8000 years) and geologists are optimistic that exploration will uncover more gas to add to this base.

Natural gas is predominantly methane (CH4) and it is used mainly in power generation. But it is also important in Australia as a heating and cooking fuel and as a feedstock for fertiliser and chemical production. In addition, gas is used in manufacturing glass, steel, plastics, paint, fabrics and many other products.

Australia’s gas production is growing, however gas generates less than 9 per cent of our electricity - a very low proportion by international comparison. Australian gas is an under-used resource and there is plenty of room for further expansion.

Clean energy

Gas-fired power stations produce up to 70 per cent fewer greenhouse gas emissions than existing coal-burning plants, which means Australia’s enormous gas resources offer us - and the wider Asia-Pacific region - a significant opportunity to address the twin challenges of maintaining energy security and meaningfully responding to climate change.

Natural gas offers the cleanest viable source of large-scale baseload and peaking power for Australia. Gas-fired power is much cheaper than solar and wind power, and is not limited by weather conditions or the time of day.

__________________________________________________________________________________

AUSTRALIAN GAS

2000 production (billion cubic feet)

2008 production (billion cubic feet)

2009 production (billion cubic feet)

Sales gas (domestic gas)

725.5

1060.4

1000.5

LNG (export gas)

345.1

727.1

835.3

Total gas

1070.6

1787.5

1835.8

 

Conventional and unconventional gas

The terms “conventional gas” and “unconventional gas” refer to forms of natural gas differentiated primarily by the types of reservoirs in which they are found.

Conventional natural gas is found in permeable sandstone reservoirs.

Unconventional gas refers to gas in several types of reservoirs that have only recently become commercially viable. Coal seam gas (CSG) is found in coal deposits. Shale gas is found in shale deposits. Tight gas is found in relatively impermeable geological formations in which gas does not flow as well as it would in a conventional reservoir and it cannot as easily be brought to the surface.

For more information see this site's unconventional gas webpage.