Unbeknownst to all of Australia, the Australia Energy Market Operator (AEMO) has its finger on the answer to everything:
Favorable weather conditions toward the end of winter and reduced gas generation demand have allowed Iona to start refilling its storage capacity.
Iona inventory is currently sitting at 44% or 10,736 TJ, while Newcastle LNG is currently holding 556 TJ, which is 36% full.
AEMO’s notices are an important mechanism in the management of gas supply and are used to keep the market fully informed.
Government representatives and industry participants were briefed on AEMO’s decision to end the notice on Thursday afternoon, 22 August, as part of AEMO’s ongoing management of gas supply.
Gas is the key to stable and cheap power. It is gas that supplies the baseload backup to renewables. It also sets the price for electricity owing to the arcane electricity auction system.
The AEMO has unwittingly exposed that the moment electricity demand drops in southern states, there is oodles of gas.
Some of this comes from waning Bass Strait reserves and some from volumes piped south from QLD.
When demand is weak, those pipeline volumes help fill the southern reserve.
So, all we need to do is fill expanded gas tank storage as pipelines from QLD run full tilt in weak seasonal demand gas periods.
This is precisely what the US and Europe do in their weak seasons of gas consumption. They refill vast storages that are drawn down in winter. Here is the European example:
We even have the mechanism to do it in the Australian Domestic Gas Reservation Mechanism (ADGSM) which forces gas exporters in QLD to supply locally.
It will need to be activated when there is abundant gas, which runs contrary to media pressure but is necessary to prepare for winter.
Plus, we need to build out the Iona storage facility.
I would also add an export levy to ensure that every cent above $6Gj delivers revenue to the treasury, and crashes the local price.
Voila! All gas shortages ended permanently. All coal power gone. All renewables boom. All energy prices crashed. All inflation cured.
The only problem is Mad King, the treasonous Resources Minister who refuses to countenance reserving east coast gas.
