AEMO continues to monitor gas supplies – with respect to high demand

With respect to yesterday’s ‘Notification of Potential Gas Supply Shortfall Event’ and this evening’s tight supply-demand balance in the NEM, worth noting this AEMO tweet at 17:50 this evening:

… which links to this short update on the AEMO website, which says:

‘AEMO update on tight gas supplies in southern states

02/06/2022

1 min

• • Gas producers in Queensland have responded to shortfalls in the southern states, following AEMO’s activation of the Gas Supply Guarantee mechanism yesterday.
  • We’re seeing gas flow at near capacity (98% or 397 terajoules) through the South West Queensland Pipeline, which connects into NSW, VIC and SA.
  • Supplies remain tight, with high gas demand driven by heating needs with colder weather and for power generation.
  • Administered price caps ($40 gigajoule) will remain in the Sydney and Brisbane short term trading markets until 7 June 2022 at this stage. (Required under the National Gas Rules following the gas retailer of last resort (RoLR) event involving Weston Energy on 24 May 2022).
  • Victoria’s gas market (Victorian declared wholesale gas market) also remains capped at $40/GJ after reaching a cumulative high price threshold on 30 May. This will remain capped until the cumulative price falls and remains below the threshold for a day.
  • On current availability forecasts, there is sufficient electricity supply to meet forecast demand in the National Electricity Market.
  • AEMO continuously updates NEM forecasts as conditions change.
  • We continue to work closely with market participants, industry and governments to manage the situation.

ENDS

For more information: AEMO Media I M 0409 382 121 I E media@aemo.com.au’

A stressful time in the AEMO control rooms!