[HN Gopher] Australia out of natural gas, pays gas companies to ...
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       Australia out of natural gas, pays gas companies to export its
       reserves
        
       Author : andrewstuart
       Score  : 16 points
       Date   : 2024-07-02 21:02 UTC (1 hours ago)
        
 (HTM) web link (www.smh.com.au)
 (TXT) w3m dump (www.smh.com.au)
        
       | andrewstuart wrote:
       | Australia pays the natural gas companies to steal our natural gas
       | then we run out of natural gas and pay them to buy it back from
       | them.
        
         | toomuchtodo wrote:
         | Won't the rising cost of fossil gas due to these issues speed
         | electrification? Behold the death spiral, embrace the death
         | spiral!
         | 
         | (As more fossil gas consumers electrify, an ever smaller
         | population must support the network fixed costs, driving up
         | costs and continuing to more rapidly push consumers to
         | electrify; like bankruptcy, it happens slowly, and then all of
         | a sudden)
         | 
         | https://reneweconomy.com.au/new-blow-to-fossil-gas-as-regula...
         | 
         | https://www.asme.org/topics-resources/content/energy-blog-ar...
        
           | guidedlight wrote:
           | It will particularly in Victoria, which has highest number of
           | residential gas connections (90%).
           | 
           | However, the primary dispatchable electricity generation
           | comes from gas fired power plants. To say, Australia has a
           | dependance on gas is an understatement.
           | 
           | Unfortunately, there has been considerable in-action and lack
           | of investment mainly due to the main political parties having
           | competing energy policies. The conservatives previously had a
           | "gas led" generation plan, but due to the gas crisis they
           | have switched to a nuclear-led proposal (Australia has no
           | nuclear power plants, and no expertise in them). The current
           | government is pushing renewables and storage, however
           | progress has been slow due to land owners being unwilling to
           | allow new transmission lines and environmental concerns about
           | offshore wind infrastructure.
           | 
           | Meanwhile about half of Australia's energy comes aging coal
           | power plants, whose live has been extended, all of which are
           | due for phased retirement in the near future.
        
             | toomuchtodo wrote:
             | https://news.ycombinator.com/item?id=40808618 ("Australia
             | electricity grid with 100% renewables and 120GWh
             | batteries")
             | 
             | https://www.bloomberg.com/news/articles/2023-03-07/end-of-
             | co... | https://archive.today/2owbd ("Australia's rapid
             | shift from coal-fired power to cleaner alternatives is
             | underwriting a boom in battery projects able to store solar
             | and wind energy. The country has at least 250 planned
             | battery developments with a potential capacity of almost
             | 130,000 megawatt-hours, a pipeline that's second only to
             | China, data compiled by BloombergNEF show. While Australia
             | still relies on coal for more than half of its electricity
             | generation, many major plants are set to close in the next
             | decade.")
             | 
             | https://www.ga.gov.au/scientific-
             | topics/energy/resources/oth... ("Australia receives an
             | average of 58 million PJ of solar radiation per year,
             | approximately 10,000 times larger than its total energy
             | consumption. However, Australia's current use of solar
             | energy is low with solar energy accounting for only about
             | 0.1 per cent of Australia's total primary energy
             | consumption.")
        
               | guidedlight wrote:
               | Yep. This is the current direction. As I said, investment
               | uncertainty due to the alternative nuclear proposal,
               | issues with transmission lines, and environment issues
               | for wind projects are the main barriers.
        
           | XorNot wrote:
           | I've had gas service removed from my house and the pipes
           | taken out - but that was for environmental reasons - I'm
           | committed to only using electrical (i.e. fuel independent)
           | appliances.
        
             | toomuchtodo wrote:
             | I salute your efforts, onward.
        
         | ars wrote:
         | I thought you were exaggerating, but that really is what
         | happening (except for the steal part - your comment would be
         | better without exaggerating).
         | 
         | So instead of selling the gas externally (because they are
         | contractually bound to do so) and then import other gas, I
         | would suggest buying gas from elsewhere to deliver to fulfill
         | the contract and then use the local gas locally.
         | 
         | It would need an analysis of costs.
         | 
         | The reason for all this trouble is apparently the gas field
         | production has gone down faster than predicted.
        
           | guidedlight wrote:
           | The challenge is that Australia is big, really big. The
           | population is sparse and mainly lives in a few coastal areas.
           | 
           | The parts of Australia that have gas and are exporting it
           | (the west and north), are quite distant from the parts of
           | Australia that are running out of gas and need it locally
           | (the east and south).
           | 
           | In this scenario, it's easier and cheaper to use existing
           | export terminals to send ships to those other parts of the
           | country that need the gas. Unfortunately the optics of doing
           | this is bad.
        
           | tmnvix wrote:
           | > except for the steal part - your comment would be better
           | without exaggerating
           | 
           | It is hyperbole, but still appropriate when you consider the
           | meaning of the phrase 'it was a steal'. As with pretty much
           | all extracted resources in Australia, the royalties paid are
           | a pittance relative to the value. The abundance of this type
           | of common wealth in Australia makes people undervalue them in
           | my opinion (to the benefit of the extractors - who have very
           | active and successful lobbyists).
        
       | Molitor5901 wrote:
       | https://archive.is/oegzu
        
       | Molitor5901 wrote:
       | _Brett Woods, the chief executive of gas producer Beach Energy...
       | Woods also warned importing gas could increase local prices for
       | manufacturers that relied on gas for energy or as a feedstock by
       | lifting their exposure to the volatile global commodity market,
       | putting local jobs at risk.
       | 
       | He is calling for governments to focus on opening new gas fields
       | and building more storage facilities ahead of imports._
       | 
       | Another point for nuclear energy?
        
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