A new report released today suggests growing demand for gas from the eastern states will create a need for greater exploration and supply from South Australia’s Cooper and Otway basins.
The Core Energy Cooper Basin Outlook report says that by 2018, annual demand in the eastern Australia gas sector will approach approximately 2,000 peta-joules (PJ), rising from a historical high of approximately 700 PJ.
This means there would need to be an underlying reserve of approximately 40,000 PJ to support 20 years of activity, and 80,000 PJ over a 40-year outlook.
Gas resources located within or near existing gas production, transport, and processing in the Cooper and Otway basins are considered the best opportunity for further exploration, development and to supply gas markets at the lowest costs.
The South Australian Government contracted local energy consultancy firm Core Energy to assess the outlook of the Cooper Basin as a major source of gas supply in the eastern Australian market.
The report refers to the work of the Department of State Development and Geoscience Australia to assess the potential of Cooper Basin reservoirs across South Australia and Queensland.
In February 2016 the Department of State Development documented preliminary estimates indicating there is in excess of 600 trillion cubic-feet of sales gas and 80 billion barrels of oil in place – all within the Cooper Basin’s tight sand, shale and deep coal reservoirs.
Quotes attributable to Mineral Resources and Energy Minister Tom Koutsantonis
Affordable gas is becoming more and more important as the National Electricity Market transitions away from coal-fired power towards a mix of gas and renewables.
Last month the State Government announced that we will be partnering with gas companies through a grant scheme that will incentivise more gas to be extracted and supplied to the SA market first, which will put downward pressure on power prices.
This report shows just how big the potential is for the development of new gas projects in the Cooper and Otway Basins.
These South Australian resources could underpin decades of gas supply for both domestic gas and export LNG markets.