AEMO's 2025 GSOO: A Call for New Gas Investments

Supply Shortfalls Looming

The Australian Energy Market Operator (AEMO) has released its 2025 Gas Statement of Opportunities (GSOO), urging for new investments to address forecasted gas supply shortfalls in southern Australia. With the depletion of Bass Strait gas fields and a decline in production from the Longford Gas Plant, the East Coast Gas Market faces a critical phase.

Structural Market Changes

AEMO CEO Daniel Westerman emphasized the need for market-led investments to mitigate future peak-day shortfalls, expected from 2028, and annual supply gaps forecasted from 2029. Industrial gas consumption remains stable, but the need for flexible gas-powered generation grows as coal retires and renewables rise.

Future Solutions and Investments

Potential solutions include new production, LNG regasification terminals, and expanded storage and transportation infrastructure. These efforts aim to secure a reliable energy future while enabling higher renewable penetration.

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