NSW Market Overview.
NSW Energy Demand and Supply Shortfall
Gas demand in NSW is expected to triple over the next 20 years (Figure 1). Currently, gas only makes up 10%of the NSW energy mix and more than 90% of that gas is imported from other states. Worryingly for the energy security of NSW, production from these interstate gas fields is declining and gas is possibly to be redirected in future to export LNG projects in Queensland.
Despite the energy challenges facing the state, NSW possesses very significant natural gas (coal seam gas) resources. The CSIRO estimates that CSG resources in QLD and NSW are in excess of 250 trillion cubic feet, enough energy to power both states for 400 years at current demand. Dart Energy believes that the responsible development of local CSG resources will ameliorate the impact of a real energy shortfall in NSW, and deliver this capacity with positive economic benefits and with little environmental impact
Figure 1: Historical and projected gas demand in NSW (PJ/annum)