Users warn of demand destruction

WESTERN Australia’s DomGas Alliance wants the state’s next parliament to assess the likely demand destruction caused by gas price spikes that are likely if warnings from the energy regulator on a shortage after 2022 come to pass.

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The Australian Energy Market Operator said in its assessment of the Gas Statement of Opportunities, which guides WA government policy, that the state's domestic gas market could tighten from next year if Chevron's Wheatstone domgas facility is delayed.
 
While the upstream industry celebrated gas from Chevron's Gorgon plant entering the market as further proof the state is swimming in gas, end users' concerns have not abated.
 
DGA executive director Matt Brown said the AMEO's latest GSOO assessment had only further confused the domestic gas outlook for WA.
 
AEMO said that while the 2016 GSOO board confidently predicts the domestic market will be significantly over-supplied for the next decade, ...