Natural gas shortages in Australia's southern states have been delayed to 2028

Australia, one of the world's largest exporters of natural gas, has revised its forecast for a fuel shortage in the southern states. This was announced by the country's energy market operator in its annual report.

Previously, the industry feared that the most densely populated regions would face critical fuel shortages as early as this winter, but the deadline has now been delayed to 2028. The experts' forecast is based on a decline in gas consumption due to the growing popularity of alternative energy sources among local households. Another reason was a two-year delay in the closure of Australia's largest coal-fired power plant, Bloomberg added.

In New South Wales, Victoria, South Australia, Tasmania, and some other densely populated states, the problem of natural gas shortages could worsen by 2029. Gas demand will increase amid the energy transition. The industry's development will require higher investment inflows, according to the national operator's report.

Meanwhile, local gas producers intend to increase their production. Exxon Mobil and Woodside Energy reported about further drilling operations in the Bass Strait.