ACCC flags dramatic drop in next year’s Bass Strait gas production
The ACCC says it’s expecting a big drop in output from Exxon and BHP’s Gipplsand Basin Joint Venture next year.
Bass Strait gas production from Exxon Mobil and BHP Billiton will drop 26 per cent next year, taking more than the Australian Energy Market Operators expected shortfall out of the east coast gas market, according to the Australian Competition and Consumer Commission.
The ACCC’s gas inquiry report released today, which has been written using the ACCC’s special powers to compulsorily acquire information, says Exxon and BHP’s Gipplsand Basin Joint Venture will dramatically reduce output next year.
“Production in 2018 from the Gippsland Basin Joint Venture GBJV, which is by far the biggest producer in the southern states, is expected to fall from a record level of 330 PJ this year to 244 PJ due to both natural decline in legacy gas fields and investment decisions made by the GBJV,” the ACCC said.
“While this level of production is in line with GBJV’s production rates over 2011—15, this has left a significant gap in the supply needed to meet the needs of domestic users in the southern states.”
The drop of 86 petajoules is more than the expected 55 petajoule east coast shortage that AEMO today warned was coming next year.
ACCC chairman Rod Sims said today that the production numbers had been provided by the Gippsland Basin Joint Venture.
The GBJV produced a record 312 PJ of gas in 2016.
Bass Strait operator Exxon has been running the operations at record rates this year after announcing the start of the $5bn Kipper Tuna Turrum development and an associated gas plant.
It has given no guidance for next year but has not indicated it is expecting a drop.
The ACCC report did not say whether the information was provided by Exxon.
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