Adelaide-based Beach Energy revealed that a new “extremely disappointing” assessment has dramatically diminished gas reserves of its nearshore Enterprise field in Victoria, Australia.
The gas field, which is now estimated to contain about one-third less natural gas and expected to run out of resources sooner than originally thought, started to produce gas just two months ago.

 

This setback along with rapidly declining output from ExxonMobil-operated gas fields in Bass Strait suggests that to mitigate the risks of looming shortfalls and higher gas prices in the high season period, local and federal governments have to secure additional sources of gas supply by supporting LNG import project(s).
The Australian Energy Market Operator (AEMO) has recently warned that gas shortages in the southern states such as Victoria were likely to become more pronounced in 2026 and structural by 2028.

 

According to the Global LNG Database®, several LNG import projects have been proposed for the Australian east coast region (New South Wales and Victoria). However, two of them have already been canceled and others are struggling to receive local authorities’ approvals and secure long-term customers required to underpin the project’s finance.
“Regulatory support is urgently needed to encourage investment in new gas and LNG supply projects in Victoria and NSW states.”

 

For now, the most advanced LNG import project is Port Kembla Gas Terminal, to be located off Port Kembla in New South Wales. Hoegh Galleon FSRU would be utilized for the terminal under a 15-year contract. The under-development project’s start-up was initially scheduled for 2020-Q1, but now it is expected to be commissioned in 2026-Q1.

 

 

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