Victorian energy market undergoing a 'profound change' as they look at 'alternatives'
Rystad Energy Head of Gas and LNG Analytics Kaushal Ramesh says the Victorian market is undergoing a “profound change”.
This follows on from the Labor government’s announcement to commit to gas power through to 2050 and beyond.
Victoria has traditionally had a heavy usage of gas in industry and households but has discussed not using gas appliances when building new homes.
“The Victorian market is undergoing a profound change where they’ve always had low-cost conventional offshore gas supply that’s underpinned their residential and commercial demand,” Mr Ramesh told Sky News Business Editor Ross Greenwood.
Victorian energy market undergoing a ‘profound change’ as they look at ‘alternatives’
“A lot of that now needs to be replaced with relatively inflexible sources of supply from the north that have run into pipeline capacity constraints in the past.
“Either they need to look for more alternatives within the state … or electrification as well as LNG [Liquefied Natural Gas] Imports.