The second round of PACE Gas grants, was announced by the South Australian Government on 17 March 2017, offered an additional $24 million to accelerate the most meritorious investments in gas projects in South Australia. Support was given to projects within South Australian gas fields that have the greatest likelihood of securing new and significant gas supplies to South Australian customers by year-end 2020. Projects that can credibly deliver gas soonest to markets will be highly rated. Eligible projects potentially include, but are not necessarily limited to:
- the accelerated deployment of new technologies to lift existing and new well productivity
- new gas exploration wells in proximity to existing gas infrastructure
- new gas processing, storage and transport facilities.
Applicants must nominate how South Australian gas users (firstly electricity generators, followed by industry and then retail consumers) will be provided with a first right to agree commercial terms to contract gas resulting from grant-supported projects. Proposals that maximise energy efficiency (http://www.aemo.com.au/Electricity/National-Electricity-Market-NEM/Planning-and-forecasting/National-Transmission-Network-Development-Plan/NTNDP-database) and competition between gas-fired electricity producers in South Australia (http://www.aemo.com.au/Electricity/National-Electricity-Market-NEM/Planning-and-forecasting/Generation-information) will be highly rated.
The lead targeted outcome will be maximising gas supplies incremental to pre-existing forecast gas production profiles from South Australian gas fields for use in South Australia. Successful outcomes in accelerating significant incremental gas supplies in an otherwise tighter market should also reduce the risk of both gas supply shortfalls and severe price spikes related to tight supplies during peak demand.
PACE Gas projects must be developed within South Australia under a current licence and must demonstrate how they will increase the gas available for South Australian gas users.
The Federal Government’s $26 million Gas Acceleration Program (GAP) grant scheme is being established to accelerate the development of known significant gas resources. GAP will support projects with the greatest likelihood of securing new and significant gas supplies for the eastern gas market from onshore gas fields. The Department of Industry, Innovation and Science (DIIS) expects to formally launch this scheme in the New Year.
Find the latest information here: https://industry.gov.au/resource/Programs/Pages/Gas-Acceleration-Program.aspx
The following graphs will assist PACE Gas Grant applicants in drawing conclusions on how any plans to sell gas to South Australian gas consumers can foster:
- thermal energy efficiency; and
- competition between gas fired electricity generators in South Australia.
Thermal efficiency by % higher heating value (HHV) of South Australian gas-fired power stations.
Source: AEMO 2015 National Transmission Network Development Plan (NTNDP) Database, "Fuel and Technology Cost Review - Data (ACIL Allen) (12 June 2014)".
* Synergen Power is jointly owned by ENGIE (72%) and Mitsui & Co. (28%).
2015/16 scheduled generation percentage market share of South Australian gas-fired power stations.
Source: AEMO "2016 August, South Australian Historical Market Information Report (SAHMIR)".
2015/16 scheduled generation percentage market share of South Australian gas-fired power station owners.
Source: AEMO General Information Page "South Australia - 2016 August (2016 NEM ESOO)".
* Joint Venture partner - Pelican Point Power Station (72% ENGIE, 28% Mitsui & Co.), Osborne Power Station (50% Origin Energy, 50% ATCO).
** Synergen Power is jointly owned by ENGIE (72%) and Mitsui & Co. (28%).
The AEMO data can be downloaded in an Excel spreadsheet here.