Energy in Australia

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Prices The majority of Australian LNG is sold under long term contracts linked to oil prices. While volumes are still relatively small, an increasing proportion of LNG is also sold under short term contracts and traded on the spot market. Spot market prices are based on exisiting market conditions. Landed LNG prices in Japan (Australia’s largest LNG importer) in 2015 are estimated to be around US$10.30 a gigajoule (around A$13.70 a gigajoule). Average Australian LNG export prices (total export value divided by volume) declined 3.8 per cent in 2014–15 to around A$676 a tonne (A$12.43 a gigajoule). Table 7.5: Gas prices in 2014–15 dollars Natural Gas 2011–12 2012–13 2013–14 2014–15 Domestic Spot A$/GJ 3.72 5.37 4.23 3.25 Price a Liquefied Natural Gas b Export unit value A$/t 690.91 637.17 718.84 677.99 A$/GJ 12.70 11.71 13.21 12.46 Notes: a) Financial year average of eastern market daily spot prices b) Calculated from LNG export volumes and values Source: AEMO; Department of Industry, Innovation and Science (2015) Resources and Energy Quarterly Gas producers sell gas domestically in wholesale markets to major industrial, mining and power generation customers, and to energy retailers that sell it to business and residential customers. Until recently, Australian gas prices have generally been low by international standards, typically $3 to $4 per gigajoule. Most historical gas prices have been under confidential long term contracts, with limited exposure to international prices. There has been a recent shift towards shorter term contracts and spot markets. Victoria established a wholesale spot market in 1999 for gas sales, to manage system imbalances and pipeline network constraints. 90 ENERGY IN AUSTRALIA 2015
A short term trading market for gas was launched in Sydney and Adelaide in 2010, with Brisbane following in 2011. The market provides a means for participants to manage contractual imbalances, and is supported by a National Gas Market Bulletin Board. The Wallumbilla gas hub in Queensland was launched in early 2014. The exchange aims to alleviate unnecessary bottlenecks in the Queensland gas market by facilitating short term gas trades. Average daily spot prices for gas in the eastern market declined in 2014–15 by 22 per cent. Aaverage prices declined 50 per cent in Brisbane, 14 per cent in Sydney, 5 per cent in Melbourne and 13 per cent in Adelaide. The fall in prices is mainly a result of increased CSG production associated with ramp-up for LNG projects meeting relatively flat domestic consumption, particularly from the electricity generation sector. The energy bills paid by retail customers include the costs of wholesale gas, transport through transmission and distribution networks, and retail services. In 2014–15 the retail price for gas increased 3 per cent, considerably lower than the annual average average increase of 8 per cent over the past five years, mainly associated with the increase in distribution costs. Figure 7.8: Quarterly domestic gas spot prices 8 7 6 $/GJ 5 4 Adelaide STTM Sydney STTM Victoria Wholesale 3 2 Brisbane STTM 1 Jun–08 Jun–09 Jun–10 Jun–11 Jun–12 Jun–13 Jun–14 Jun–15 Source: AEMO ENERGY IN AUSTRALIA 2015 91
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Energy in Australia 2015 WWW.INDUST
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Department of Industry, Innovation
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Contents Foreword v Data sources IX
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8. Petroleum 93 Overview 94 Primary
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Abbreviations and acronyms ABS AEMC
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Economic contribution The energy in
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Table 1.2: Australia’s energy pro
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Energy consumption Australia’s en
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Figure 1.5: Australia’s energy ex
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Box 1: Energy flows through the Aus
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Figure 1.9: Energy trade insight Au
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Overview Energy can be extracted or
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Map 2.1: Australia’s energy resou
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Oil Australia has limited resources
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Uranium Australia has the world’s
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Map 2.2: Australia’s solar energy
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Figure 2.4: Australia’s wind ener
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Overview Australia consumed 5,831 p
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Table 3.1: Energy consumption, inte
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Table 3.2: Australia’s primary en
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Table 3.3: Australia’s energy con
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Table 3.5: Australia’s energy bal
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Table 3.6: Total final energy consu
Page 48 and 49:
Structure of the Australian Electri
Page 50 and 51: Generation from renewable fuels con
Page 52 and 53: Table 4.2: Top 10 electricity gener
Page 54 and 55: Table 4.3: Australia’s principal
Page 56 and 57: Energy efficiency improvements have
Page 58 and 59: Figure 4.5: Australian electricity
Page 60 and 61: In Queensland, Western Australia, T
Page 62 and 63: Rooftop solar panels, Sydney Austra
Page 64 and 65: Overview In Australia, renewable en
Page 66 and 67: Table 5.1: Australia’s renewable
Page 68 and 69: Electricity generation Around 44 pe
Page 70 and 71: The location of renewable energy pr
Page 72 and 73: Solar energy Solar has been the mos
Page 74 and 75: Table 5.4: Australia’s solar PV e
Page 76 and 77: Coal being loaded onto a ship, Newc
Page 78 and 79: Overview Australia is the fourth la
Page 80 and 81: Figure 6.2: Australia’s black coa
Page 82 and 83: Table 6.1: Australia’s coal consu
Page 84 and 85: Figure 6.6: World’s largest metal
Page 86 and 87: Low emissions coal Burning fossil f
Page 88 and 89: Overview Gas — conventional and u
Page 90 and 91: In 2014-15 coal seam gas production
Page 92 and 93: Figure 7.2: Australia’s gas produ
Page 94 and 95: Table 7.2: Gas consumption, by stat
Page 96 and 97: Figure 7.6: Australia’s gas marke
Page 98 and 99: Map 7.2: Australian LNG trade by ma
Page 102 and 103: Figure 7.9: Retail household gas pr
Page 104 and 105: Overview Australia produces a range
Page 106 and 107: Figure 8.2: Australia’s primary p
Page 108 and 109: Figure 8.3: Australia’s refinery
Page 110 and 111: Figure 8.5: Australia’s refined p
Page 112 and 113: Table 8.4: Australia’s diesel con
Page 114 and 115: Figure 8.9: Australia’s energy co
Page 116 and 117: Figure 8.11: Australia’s petroleu
Page 118 and 119: Table 8.6: Australia’s petroleum
Page 120 and 121: Reserves Figure 9.1: Share of globa
Page 122 and 123: Production Figure 9.5: Energy produ
Page 124 and 125: Consumption Figure 9.9: Primary ene
Page 126 and 127: Figure 9.13: Energy imports, top 10
Page 128 and 129: Figure 9.17: Coal fired electricity
Page 130 and 131: Prices Figure 9.21: OECD household
Page 132 and 133: Figure 9.23: OECD diesel prices, 20
Page 134 and 135: Table A.2: Conversion between units
Page 136 and 137: Table A5: Gross energy content of g
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Energy in Australia

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