The Australian Pipelines and Gas Association (APGA) has welcomed the findings of the report, which shows that in 2013-14, 825 PJ of gas was consumed, compared to 790PJ 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 Chief Executive Cheryl Cartwright said.
“In fact, natural gas supplies almost twice the energy that electricity supplies to the manufacturing sector – 400PJ compared to 225PJ.
“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.”
The report also found that the share of natural gas has been increasing, supported by greater uptake in electricity generation and industrial use. In 2013-14, natural gas accounted for 24 per cent of energy consumption, with consumption rising by 2 per cent.
Oil remains Australia’s largest source of energy, accounting for 38 per cent of consumption in 2013-14. Oil consumption fell by 1 per cent in 2013-14 as the full effect of the closure of the Clyde refinery in late 2012 was realised.
“Although the main focus on the value of Australia’s gas has been on the tremendous opportunities for LNG exports, its critical role in providing energy to Australia’s manufacturing, commercial and domestic users deserves more attention.
“Gas will also be a major part of the economy in the transition to low-emission power generation as electricity generated by gas produces approximately half the emissions of coal-fired electricity generation.
“In 2013-14 gas-fired power generation provided 174PJ electricity. If this was added to the non-electricity generating use of gas, the total end-use energy consumption of gas in the Australian economy would be just on 1000PJ.
“Currently, natural gas provides 22 per cent of the electricity that is generated for the Australian economy; renewable sources provide 15 per cent.
“In the race to encourage renewables in the production of electricity, gas’s role in broader energy consumption should not be ignored; it can’t be easily replaced.”