Southern Australian states could face gas shortages in the next four years as supplies from the Bass Strait deplete faster than consumer demand.

A new report from the Australian Energy Market Operator (AEMO) said that gaps in Australia’s gas supply could occur as early as 2026 and that annual shortages are expected from 2028.  The AEMO also said that gas shortages could be noticeable as of next year during peak winter periods.

For Victoria, it is expected that the total available gas supply will drop by 48 percent. Other states affected include New South Wales, South Australia, Tasmania and the ACT.

Daniel Westerman, AEMO Chief Executive said that the organisation is looking at ways to mitigate the shortage, particularly during peak seasons.

“For the first time, we’ve assessed a range of investment options that include pipeline upgrades, new domestic supply including renewable gases, and LNG import terminals,” he said.

“While each individual investment could delay shortfalls for a number of years, a combination of these options will be needed to fully address gas supply issues.”

This shortage prediction comes as one of three major gas plants is due to be closed in July this year, as Australia begins to transition to renewable energy to meet its net zero emission goals.

Photo: Gas stove by house.keepah available HERE and used under a Creative Commons license. This photo has not been modified.