Squadron insists gas terminal is best “practical answer” to supply gaps
Adjusted forecasts from the AEMO could mean Squadron Energy is not required to supply additional gas from its hastily built Port Kembla Energy Terminal until 2027 at the earliest.
The Sydney-headquartered Squadron was working to complete the project in time to address forecasted gas shortfalls expected to occur this year.
The facility has been built to accommodate the supply of more than 70% of NSW’s gas needs before a planned switch to the import and export of green hydrogen.
But AEMO recently adjusted its forecasts and now predicts shortfalls in supply to maybe occur later this decade – 2027 at the earliest.
That's thanks to plummeting gas demand for non-industrial uses, as well as soaring electrification.
Squadron fast-tracked the Port Kembla facility in early 2024, in a move explained by its staunchly pro-renewables owner Andrew Forrest as necessary to Australia’s transition from fossil fuels.
Squadron says that even with AEMO’s revised forecast, the completed terminal remains the only facility capable of filling near-term supply gaps without the need for new gas fields.
Squadron says the terminal has enough capacity to supply 500Tj of gas per day and, once commercially viable, will switch to importing and exporting green hydrogen.
However, with the future of Australia’s green hydrogen industry looking uncertain, it’s hard to predict when, or even if, this would happen.