Wednesday 16 September 2020

Australian federal & state governments are preparing to exploit large gas resources that are still in the ground




The fossil gas industry in Australia tripled production from 1990 to 2010 and then from 2010 to 2019 production tripled again. Nearly all of the new production was exported. Australia has become the world’s largest exporter of liquified natural gas (LNG) and one of the world’s biggest gas producers. Australia’s gas and coal exports make Australia’s the third largest exporter of fossil fuels in the world, after Russia and Saudi Arabia.

Over the decade to 2018 Australia was responsible for most of the growth in LNG, and a third of the growth over the last 20 years, more than any other country Australia’s share of global gas production soared in recent years, even as its share of global proven gas reserves levelled out.

Australian Government publications list 22 new gas production and export proposals across Australia with an estimated gas production capacity of 3,368 PJ pa. Governments and companies are preparing to exploit further gas resources in the ground that are larger still.

Despite calls for decarbonisation be central to the economic recovery from the coronavirus pandemic, the Australia government is proposing policies and subsidies for what it calls a “gas fired recovery”. From an economic and employment perspective, this makes little sense. There are many low cost ways to reduce gas consumption, and the industry, despite its size, employs few Australians. Expanding fossil gas production also threatens to release large amounts of greenhouse gases.

Burning fossil gas releases carbon dioxide (CO2). In addition, extracting, processing transporting and exporting fossil gas is also highly emissions intensive, and already responsible for more than 10% of current Australian emissions, on official government data. A large portion of these emissions come from gas burned by LNG facilities.
Australian LNG facilities burn around nine percent of all gas they receive to help liquify the remaining gas for export. Gas consumption in LNG facilities is double the size of whats consumed by Australian households and about as large as what is consumed by Australian manufacturing.

Another major climate impact is ‘fugitive’ emissions from flaring, venting and leakage. The true impact of these emissions is larger than officially reported. Fossil gas is made up mostly of methane, itself a greenhouse gas with much greater heat trapping potential than CO2. While methane is more powerful than CO2 over a 100 year timeframe, which is the conventional basis for comparison, methane traps far more heat over the nearer-term (a 20 years horizon). A small amount of methane loss greatly increases the climate impact of fossil gas.

Many recent studies show rates of methane loss much higher than the Australian government’s official figures, especially in unconventional gas production, such as coal seam and shale gas where techniques like hydraulic fracturing are required. Methane loss at rates observed in recent studies of large US shale gas fields range from 2.3% to 3.7%, at the higher end delivering a near-term climate impact equivalent to doubling the emissions of the burnt gas. Reducing and avoiding the release of methane emissions is essential to meeting the Paris Agreement climate goals.

There are 22 major new gas projects proposed by companies and listed by the Australian Government’s Office of the Chief Economist. The analysis here converts the supply capacity into common units for comparison and aggregation. The proposed projects are spread across the country and are of various sizes, types and stages. The largest projects are offshore fields designed for gas export, especially off Western Australia’s coast. The single largest project, Woodside’s Browse / Burrup Hub Extension, would involve piping gas from a large new gas field nearly 1000km through new undersea pipelines to an onshore facility for export…...

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