PERTH (miningweekly.com) – The Australian Pipeline and Gas Association (APGA) has welcomed the findings from a new report by the Department of Industry, Innovation and Science, which reveal that natural gas is the largest provider of stationary energy in Australia.

In the ‘Energy In Australia 2015’ report, the Office of the Chief Economist noted that the energy industry was worth about A$96.6-billion in 2014/15, with the coal, oil and gas extraction industries considered the largest contributors, adding A$52.3-billion to industry gross value.

Total primary energy production in Australia in 2013/14 was 18 715 PJ, about three times larger than domestic consumption, with net exports accounting for 72% of production. Energy exports accounted for 39% of the value of Australia’s total commodity exports in 2014/15 and were valued at A$67-billion.

Coal was the largest energy export earner, with a value of about A$37.9-billion in 2014/15, followed by liquefied natural gas (LNG) at A$16.9-billion, and crude oil and other petroleum products at A$11.5-billion.

The report found that black and brown coal accounted for 66% of Australia’s primary energy production in 2013/14, followed by uranium at 14% and natural gas at 13%.

Crude oil, condensate, and naturally occurring liquefied petroleum gas (LPG) accounted for another 5%, while renewables, mostly bioenergy and hydro, contributed the remaining 2%.

The report also pointed out that in 2013/14, 825 PJ of gas was consumed, compared to 790 PJ of electricity, in providing stationary energy.

“Clearly, natural gas is a critical part of Australia’s energy mix, particularly for industry, both for power and for heating,” APGA CEO Cheryl Cartwright said.

“In fact, natural gas supplies almost twice the energy that electricity supplies to the
 manufacturing sector – 400 PJ compared to 225 PJ. Gas is second only to oil in providing useable energy for the Australian economy. And it is the 
largest provider of stationary energy as oil is mainly used in transport.

“With such a valuable commodity, it is disappointing that some state governments are delaying 
or blocking the development of gas reserves.”

Cartwright also pointed out that natural gas currently provided 22% of the electricity generated in Australia, while renewables only accounted for 15%.

“In the race to encourage renewables in the production of electricity, gas’ role in broader energy consumption should not be ignored; it can’t be easily replaced.”

Australia produced 2 587 PJ of natural gas in 2014/15, an increase of 6% on the previous year on the back of the start-up of the Queensland Curtis LNG project, in Queensland.

The report noted that gas accounted for nearly one-quarter of primary energy consumption, one-fifth of electricity generation, and is one of Australia’s highest valued commodity exports. More than half of national gas production is exported, and Australia is currently the world’s third-largest exporter of LNG, with LNG exports valued at nearly A$17-billion in 2014/15.

As of late 2015, there were around 45-million tonnes of LNG capacity under construction in Australia. Once built, this was expected to make Australia the world’s largest exporter of LNG by the end of the decade.

This expansion in capacity would include new conventional gas projects in western and northern Australia, floating LNG projects, and coal seam gas-based LNG projects on the east coast.