Professional Documents
Culture Documents
w w w. a b a r e s . g o v. a u
Published by:
ABARES
GPO Box 1563
Canberra ACT 2601
abares.gov.au
Produced for:
Department of Resources,
Energy and Tourism
GPO Box 1564
Canberra ACT 2601
Foreword
Martin Ferguson AM MP
Minister for Resources and Energy
Contents
vii
GLOSSARY
viii
OVERVIEW
1
1
3
3
ENERGY CONSUMPTION
11
Energy intensity
Energy consumption, by fuel
Energy consumption, by industry
11
12
13
ELECTRICITY
19
Industry structure
Production
Capacity
Prices
19
21
23
24
RENEWABLE ENERGY
31
Production
Capacity
Potential
31
32
33
39
Production
Trade
Prices
39
40
42
Contents
45
Production
Trade
Prices
45
47
48
53
Production
Trade
Prices
53
56
60
61
Production
Capacity
Fuel Standards
Non-conventional liquid fuels
Prices
61
61
63
63
65
67
Energy consumption
Fuel efficiency
Port capacities
67
68
70
73
APPENDIX 1
77
77
79
84
APPENDIX 2
91
91
vi
Abbreviations
ABARES
AEMO
DOE
EIA
ESAA
IEA
LNG
LPG
NGL
natural gas liquid hydrocarbons, other than methane, derived from the natural
gas stream in separation and/or liquefaction facilities
OECD
ORF
RET
ABARES www.abares.gov.au
Australian Bureau of Statistics www.abs.gov.au
Australian Energy Market Operator www.aemo.com.au
Australian Financial Markets Association www.afma.com.au
Australian Institute of Petroleum www.aip.com.au
BP Statistical Review of World Energy www.bp.com
Clean Energy Council www.cleanenergycouncil.org.au
Department of Climate Change and Energy Efficiency www.climatechange.gov.au
Department of Resources, Energy and Tourism www.ret.gov.au
Energy Information Administration www.eia.doe.gov
Energy Networks Association www.ena.asn.au
Energy Supply Association of Australia www.esaa.com.au
Geoscience Australia www.ga.gov.au
Global-roam Pty Ltd www.nem-review.info
International Energy Agency www.iea.org
Office of the Renewable Energy Regulator www.orer.gov.au
Platts (McGraw Hill) www.platts.com
Ports Australia www.portsaustralia.com.au
vii
Glossary
Glossary
Bagasse
The fibrous residue of the sugar cane milling process that is used as a
fuel (to raise steam) in sugar mills.
Biogas
Landfill (garbage tips) gas and sewage gas. Also referred to as biomass
gas.
Brown coal
See lignite.
Coal by-product By-products such as blast furnace gas (from iron and steel processing),
coal tar and benzene/toluene/xylene (BTX) feedstock and coke oven gas
(from the coke-making process).
Coal seam gas Methane held within coal deposits, bonded to coal under the pressure of
water. It may also contain small amounts of carbon dioxide and nitrogen
(also referred to as coal seam methane and coal bed methane).
Conversion
The process of transforming one form of energy into another (derived)
form before final end use. Energy used in conversion is the energy
content of fuels consumed as well as transformed by energy producing
industries. Examples are natural gas and liquefied petroleum gas used in
town gas manufacturing, all hydrocarbons used as feedstocks in oil
refineries, and all fuels (including electricity) used in powerstations.
Therefore, energy used in conversion also includes energy lost in the
production, conversion and transport of fuels (such as energy lost in
coke production) plus net energy consumed by pumped storage after
allowance for the energy produced.
Crude oil
Naturally occurring mixture of liquid hydrocarbons under normal
temperature and pressure.
Condensate
Hydrocarbons recovered from the natural gas stream that are liquid
under normal temperature and pressure.
Conventional gas Generally refers to methane held in a porous rock reservoir, frequently in
combination with heavier hydrocarbons. It may contain small amounts
of ethane, propane, butane and pentane as well as impurities such as
sulphur dioxide, and inert gases such as nitrogen.
Derived or
Fuels produced or derived by conversion processes
secondary
to provide the energy forms commonly consumed.
fuels
They include petroleum products, thermal electricity, town gas, coke,
coke oven gas, blast furnace gas and briquettes.
Economic
The quantity of resources that is judged to be
demonstrated economically extractable under current market conditions
resources
and technologies.
Electricity
Actual electricity generation output as a proportion of generation
capacity
capacity.
utilisation
Energy in Australia 2011
viii
Electricity
generation
capacity
Lignite
Liquid fuels
Natural gas
Petajoule
Petroleum
Petroleum
products
Primary fuels
Total final
energy
consumption
Total primary
energy
consumption
Units, metric
prefixes
and converison
factors
UNITS,
METRIC
PREFIXES
AND CONVERSION
FACTORS
Units
Metric prefixes
Other abbreviations
joule
bcm
litre
M mega 10 (million)
cubic metre
tonne
giga
gram
tera
1012
watt
peta
1015
Wh watt hour
exa
1018
billion 109
kilo
103 (thousand)
6
barrel
not available
pa
per annum
Conversion factors
1 barrel = 158.987 L
1 mtoe (million tonnes of oil equivalent) = 41.868 PJ
1 kWh = 3600 kJ
1 MBTU (million British thermal units) = 1055 MJ
1 m3 = 35.515 cubic feet
1 L LPG = 0.254 m3 gas
1 L LNG = 0.625 m3 natural gas
Conversion factors are at a temperature of 15 C and pressure of
1 atmosphere.
Indicative energy contents of fuels are listed at the end of the publication.
Overview
Australias energy supply
Australia has abundant and diverse energy resources that supply energy for
both domestic consumption and the world market. In 200809, Australias
energy production was 17 769 petajoules. Net energy exports accounted
for 68 per cent of domestic energy production in 200809, while domestic
consumption accounted for the remaining 32 per cent. Australia is the
worlds ninth largest energy producer, accounting for around 2.4 per cent of
world energy production. Given its large energy resources, Australia is well
positioned to continue its role as an important supplier of world energy
needs, while maintaining domestic energy supply.
The main fuels produced in Australia are coal, uranium and natural gas.
In 200809, Australias energy production was dominated by coal, which
accounted for 54 per cent of total Australian energy production in energy
content terms, followed by uranium with a share of 27 per cent and natural
gas with a share of 11 per cent. Crude oil and liquefied petroleum gas
(LPG) represented 6 per cent of total energy production, and renewables
represented 2 per cent.
The Australian energy industry is a significant contributor to the economy.
The coal and petroleum industries contributed $68 billion to industry value
added in 200809, representing 5.7 per cent of the Australian total. The
electricity and gas supply industries
Australian energy production
contributed another $19 billion to
industry gross value added.
20 000
17 500
15 000
12 500
10 000
7500
5000
2500
uranium
natural gas
LPG
crude oil and condensate
renewables
brown coal
black coal
Energy exports
Australia is a net energy exporter,
with domestic energy consumption
representing only one-third of
total energy production. However,
Australia is a net importer of crude
oil and refined petroleum products.
Coal is Australias largest energy
export earner, with a value of
PJ
1978
79
1988
89
1998
99
2008
09
Overview
200809
gross
value added
gross fixed
capital formation
employment
$b
$b
000
37.9
28.9
7.7
12.6
34.0
12.0
1.2
17.8
1.1
86.9
1.0
10.9
0.6
32.8
7.0
48.0
2.0
103.0
1 194.5
356.4
10 809.0
Coal mining
Oil and gas extraction
Petroleum and coal product
manufacturing
Electricity supply
Gas supply
Total
Australia
Sources: Australian Bureau of Statistics (ABS), Australian Industry, cat. no. 8155; Australian System of National
Accounts, cat. no. 5204; Australian Labour Market Statistics, cat. no. 6105.
$36 billion in 200910, followed by crude oil and liquefied natural gas (LNG).
Crude oil and LNG are also among Australias 10 highest value commodity
exports. Energy exports accounted for 34 per cent of the value of Australias
total commodity exports in 200910.
Australian energy exports
80
70
60
50
40
30
20
10
200910
$b
uranium
LPG
LNG
petroleum products
crude and ORF
coal
Overview
Domestic energy
consumption
Metallurgical coal
Gold
Thermal coal
Crude oil
LNG
Copper
Alumina
200910
200809
10
20
30
40
Energy resources
Australia has large resources of both renewable and non-renewable energy.
Australian resources of uranium, for instance, account for 47 per cent of total
world resources, while Australian coal resources make up 10 per cent of the
world total. In this report, data on energy resources are presented in energy
units to allow comparison across different resources. A large proportion
of Australian black coal resources are high-quality bituminous coals,
characterised by a low sulphur and low ash content. A significant amount of
natural gas reserves are also located in Australia. Although Australia does not
Overview
have large oil resources, Australian crude oil is typically low in sulphur and
of the light variety of liquid fuels, which have a higher value than the heavy
variety because of their lower wax content.
Australia has significant and widely distributed wind, solar, geothermal,
hydroelectricity, ocean energy and bioenergy resources. Except for
hydroelectricity, where the available resource is already mostly developed,
and wind energy, where use of the resource is growing rapidly, renewable
resources are largely undeveloped and could contribute significantly more
to Australias future energy supply. Many of these resources are difficult to
quantify and data on economic demonstrated resources for renewables
were not available for inclusion in this report.
Australia
1 January 2010
share of
reserves to
world production e
%
yrs
Coal a
Black coal
Brown coal
PJ
PJ
987 064
359 870
10.6
8.9
111
539
Petroleum
Oil
Condensate
LPG
PJ
PJ
PJ
6 290
12 691
4 399
0.3 b
na
na
10
45
42
Gas
Conventional gas
PJ
Coal seam methane c PJ
123 200
16 180
1.6
na
68
100
Uranium d
685 440
47.5
141
PJ
a Recoverable resources as at December 2009. b Crude oil, condensate and LPG combined. c As at December 2008,
most recent data available at time of publication. d Reasonably assured resources recoverable at costs of less than
US$80/kg U. e Estimated economic demonstrated reserves (EDR) under current production rates. na Not available.
Sources: Geoscience Australia, Australias Identified Mineral Resources 2010, Oil and Gas Resources of Australia 2009; BP, BP
Statistical Review of World Energy.
Overview
200910
$m
1977 1985
78
86
oil and gas
coal
uranium
1993
94
2001
02
2009
10
Overview
Exploration expenditure for coal increased by 8 per cent to around $321 million
in 200910, in response to expectations of increasing world coal demand over
the medium to longer term. Spending on uranium exploration decreased by
9 per cent, as sharp declines in uranium spot prices in recent years have
resulted in some exploration activity
Australias economic demonstrated
being postponed.
resources of coal
1 200 000
Coal
1 000 000
800 000
600 000
400 000
200 000
PJ
1979 1985 1991 1997 2003 2009
brown coal
black coal
Source: Geoscience Australia.
Petroleum
Australias resources of crude oil
and condensate are only a small
proportion of world resources.
Resources of crude oil, condensate
and LPG all followed a generally
decreasing trend from 2000 to 2007;
however, crude oil and condensate
resources both increased in 2008.
14 000
12 000
10 000
8000
6000
4000
2000
PJ
1985 1989 1993 1997 2001 2005 2009
oil
condensate
LPG
Source: Geoscience Australia.
Energy in Australia 2011
Overview
by state, 2009 a
crude oil
condensate
LPG
natural gas
GL
GL
GL
bcm
Vic
Qld
SA
WA
NT
Tas
35
1
9
108
16
0
25
0
2
256
55
2
28
0
5
96
36
1
237
13
20
2 431
277
7
Total
170
340
166
2 984
Gas
140 000
120 000
100 000
80 000
60 000
40 000
In addition to conventional
gas resources, there is growing
commercial utilisation of Australias
resources of coal seam gas. Most of
these resources are located in the
black coal deposits of Queensland
and New South Wales.
20 000
PJ
1985 1989 1993 1997 2001 2008 2009
conventional gas
coal seam methane a
a Coal seam methane data for 2009 not available at
time of publication.
Source: Geoscience Australia.
Overview
Uranium
700 000
600 000
500 000
400 000
300 000
200 000
100 000
PJ
1977
1985
1993
2001
2009
0.3%
0.1%
8.9%
Gas basin
0.0%
0.3%
66.8%
52.2%
15.7%
15.3%
17.7%
1.1%
0.3%
0.6%
2.1%
0.2%
0.7%
11.1%
6.1%
0.2%(Bowen/Surat
Basin)
0.3%
Overview
10
Energy consumption
Australia is the worlds twentieth largest primary energy consumer and ranks
fifteenth on a per person basis. Australias energy consumption is primarily
composed of fossil fuels (coal, oil and gas), which represent 95 per cent of
total energy consumption.
Annual growth in primary energy
consumption in Australia
Energy intensity
There has been a long-term decline in the energy intensity (energy
consumption per unit of gross domestic product) of the Australian
economy. This trend can be attributed to two main factors. First, energy
11
Energy consumption
12
Energy consumption
Energy consumption
black brown
petroleum natural
coal
coal renewables a products
gas
state
share b
PJ
PJ
PJ
PJ
PJ
0.1
651
0
0
0
0
0
651
58
42
120
18
12
39
0
303
541
433
466
310
119
40
75
1 983
137
256
149
498
141
10
43
1 233
27
24
23
16
6
2
2
100
11.3%
5.2%
34.4%
21.4%
Share of total
27.8%
a State breakdown does not include wind and solar PV, which are included in the total. b Excluding wind, solar PV
and biogas.
Source: ABARES, Australian energy statistics.
2000
1000
PJ
1973 1978 1983 1988 1993 1998 2003 2008
74 79 84 89 94 99 04 09
Source: ABARES, Australian energy statistics.
13
Energy consumption
by fuel
200405
200506
200607
200708
200809
PJ
PJ
PJ
PJ
PJ
1 618
689
77
76
5
1
92
108
1 541
1 943
1 052
6
3
884
56
3
0.3
1 639
705
76
77
4
1
90
109
1 407
1 968
1 108
7
2
891
58
6
0.4
1 686
611
77
75
3
2
93
111
1 503
2 000
1 187
7
6
904
52
9
0.4
1 655
630
78
77
3
5
108
112
1 462
2 062
1 237
4
7
929
43
11
0.4
1 612
651
64
57
3
8
102
110
1 482
2 039
1 250
3
8
939
44
14
0.6
98
77
4
1 429
5
847
98
78
3
1 534
5
857
98
79
3
1 557
4
863
74
57
3
1 537
3
881
Total energy
consumption b
5 625
5 690
5 763
5 773
Consumption of fuels
Black coal
Brown coal/lignite
Coke
Coal by-products
Brown coal briquettes
Liquid biofuels
Wood, woodwaste
Bagasse
Refinery input
Petroleum products
Natural gas
Town gas
Solar hot water
Total electricity
of which hydro electricity
wind energy
solar electricity
5 447
a Production may exceed refinery input as some petroleum products are produced from other petroleum
products. b Total energy consumption is the total quantity (in energy units) of primary and derived fuels consumed
less the quantity of derived fuels produced. Totals may not add because of rounding.
Source: ABARES, Australian energy statistics.
14
Energy consumption
primary
energy
exports
13 684
LPG 104
natural gas 1916
refinery feedstock 1028
uranium oxide 4846
final energy
exports
126
64
838
617
4754
411
public electricity
energy
transformation
1463
40
287
7411
822
395
other
651
1243
gross
final
energy
disposal
149
46
211
92
1183
primary energy
imports
15
802
434
539
1409
1239
commerce
and services
residential
agriculture
and mining
transport
manufacturing
721
final energy
imports
Energy consumption
Supply
Primary indigenous
plus all imports
less all exports
less stock changes
and discrepancies
200809
coal and
coal
by-products
PJ
natural
gas,
CSM
PJ
crude
oil and
ORF
PJ
propane,
butane,
LPG
PJ
refined
products
PJ
9 572.0
7 410.7
1 915.9
238.3
838.3
1 028.1
944.4
617.1
104.1
25.7
64.2
695.6
125.8
91.9
82.4
82.8
11.4
79.0
2 253.3
1 233.4
1 438.2
54.2
490.8
Total domestic
availability
less conversions
Coke ovens
Briquetting
Petroleum refining
Gas manufacturing
Electricity generation a
Other conversion b
Fuel use in conversion
10.3
2.6
0.2
2 009.9
35.7
6.9
10.3
10.8
7.6
48.0
74.4
30.1
liquid/
gas
biofuels
PJ
23.8
23.8
0.7
20.6
0.4
367.7
1 480.6
3.3
49.1
22.8
821.9
3.3
0.1
244.9
40.1
21.3
86.1
21.2
139.3
77.0
3.1
1.8
4.8
1.5
0.0
0.1
47.1
139.8
821.9
2.0
0.5
0.8
38.0
2.3
0.1
6.8
2.3
1 442.7
31.4
14.3
111.1
15.4
98.9
1 775.9
8.4
1.8
1.7
1.1
0.8
9.5
0.5
0.6
5.7
0.2
59.5
86.9
114.3
1.9
0.6
58.7
1.9
58.8
6.1
22.2
1 003.3
34.1
230.3
60.3
31.3
1.2
63.8
3.4
14.1
3.3
98.9
1 775.9
0.9
1.2
5.6
0.7
8.4
continued...
16
Supply
Total domestic
availability
less conversions
Coke ovens
Briquetting
Petroleum refining
Gas manufacturing
Electricity generation a
Other conversion b
Fuel use in conversion
212.1
14.2
8.8
44.3
212.1
14.2
8.8
44.3
194.1
14.2
0.6
8.2
Agriculture
Mining
Food, beverages, textiles 114.9
Wood, paper and printing 18.6
Chemical
Iron and steel
Non-ferrous metals
2.4
Other industry
0.9
Construction
Road transport
Rail transport
Air transport
Water transport
Commercial and services 0.3
Residential
57.0
Lubes, bitumen, solvents
194.1
44.3
90.7
5 772.6
890.7
48.8
130.4
0.0
11.1
2.8
27.6
1.9
1 613.7
54.6
266.6
801.9
3 907.1
0.1
0.2
6.8
18.1
total
PJ
4 846.1 17 769.0
1 904.0
4 753.6 13 809.6
92.5
Disposal
continued
wind
hydrototal
U3O8
biomass electricity solar electricity electricity uranium
PJ
PJ
PJ
PJ
PJ
PJ
Primary indigenous
plus all imports
less all exports
less stock changes
and discrepancies
Final domestic
availability c
200809
6.2
73.7
30.2
21.7
15.1
28.4
176.4
24.5
0.3
8.8
0.3
8.0
202.8
213.7
8.2
801.9
0.0
95.1
443.6
199.9
73.9
177.0
100.0
452.7
145.5
25.8
1 070.2
43.0
230.3
65.2
287.4
433.8
63.8
3 907.1
a Grid connected power stations only, except for Total electricity. b Includes return streams to refineries from the petrochemical
industry, consumption of coke in blast furnaces, blast furnace gas manufacture, electricity produced through cogeneration and
lignite tar in char manufacture. c After conversion sector use and losses. Equals gross final energy disposal which is the final
disposal of energy within the end use sectors.
Note: Because it is not possible to separate the fuels used to produce embedded electricity, those fuels are included in the
industry in which production occurs. The electricity produced is included under electricity generation and other conversion.
Totals may not add because of rounding
Source: ABARES, Australian energy statistics
17
Energy consumption
by industry
197475
197980
198990
199900
PJ
PJ
PJ
PJ
200809
PJ
Agriculture
39
Mining
65
Manufacturing
928
Electricity generation 540
Construction
29
Transport
701
Commercial a
87
Residential
246
Other b
59
Total
2 695
47
81
965
743
38
825
104
262
66
3 131
55
160
1 067
1 066
41
1 012
151
322
69
3 946
72
273
1 192
1 427
29
1 267
219
392
77
4 971
95
429
1 257
1 744
26
1 435
277
434
76
5 773
a Includes ANZSIC Divisions F, G, H, J, K, L, M, N, O, P, Q and the water, sewerage and drainage industries. b Includes
consumption of lubricants and greases, bitumen and solvents, as well as energy consumption in the gas production
and distribution industries.
Note: Totals may not add because of rounding.
Source: ABARES, Australian energy statistics.
.
200607
200708
200809
200910
ML
ML
ML
ML
ML
LPG a
4 050
Automotive gasoline 19 048
Avgas
86
Turbine fuel
5 359
Kerosene
27
Heating oil
25
Automotive diesel oil 15 804
Industrial diesel fuel
19
Fuel oil
1 586
Lubes and greases
451
Bitumen
805
Other b
973
4 038
19 251
90
5 837
32
15
17 028
15
1 513
421
808
699
4 024
19 234
88
6 070
43
12
18 245
11
1 583
435
785
258
3 996
18 734
96
6 173
25
7
18 587
16
1 423
437
809
311
3 795
18 644
80
6 675
29
7
19 044
26
982
457
814
376
Total products c
49 746
50 788
50 614
50 928
48 234
a Includes LPG used as petrochemical feedstock. b Includes other refined products, crude oil used as a fuel and
specialty feedstocks. c Some petroleum products are produced from the conversion of other petrochemical
products. Sources: RET, Australian petroleum statistics.
Energy in Australia 2011
18
Electricity
Industry structure
The current structure of Australias eastern electricity market was shaped
by industry reforms that began in the early 1990s. A key element of these
reforms was the National Electricity Market (NEM), which began operation in
1998. The NEM allows market determined power flows across the Australian
Capital Territory, New South Wales, Queensland, South Australia, Victoria and
Tasmania. Western Australia and the Northern Territory are not connected
to the NEM, primarily because of their geographic distance from the east
coast. The NEM operates as a wholesale spot market in which generators and
retailers trade electricity through a gross pool managed by the Australian
Energy Market Operator (AEMO), which aggregates and dispatches supply
to meet demand. In addition to the physical wholesale market, retailers may
also contract with generators through financial markets to better manage any
price risk associated with trade on the spot market.
Market structure
physical
electricity flows
industrial
consumers
generators
distribution
network
physical
electricity flows
retailers
consumers
supply offers
electricity
payments
electricity
payments
financial contracts
19
Electricity
Queensland
$34/MWh
53.0 TWh
58.8 TWh
QNI
561
Directlink
88
77.5 TWh
79.4 TWh
239
Vic NSW
South Australia
Heywood
13.4 TWh
12.8 TWh
Victoria
$42/MWh
92
$51/MWh
Murraylink
21
51.0 TWh
55.0 TWh
BassLink
state
129
Tasmania a
$59/MWh
10.0 TWh
8.9 TWh
18.0 TWh
Northern Territory
na
1.9 TWh e
1.9 TWh
Sources: Global Roam, NEM Review; WA Office of Energy; NT Power and Water Corporation, Annual Report 2010.
20
Electricity
Production
Around 261 terawatt hours of electricity (including off-grid electricity) was
generated in Australia in 200809. Over the past five years, the industry has
increased electricity generation by 6 per cent and the number of customers
has increased by around 7 per cent. Average capacity utilisation has
remained relatively constant over the past five years at between 52 and
56 per cent.
Most of Australias electricity is produced using coal, which accounted for
77 per cent of total electricity generation in 200809. This is because coal is
a relatively low cost energy source in Australia. It also reflects the abundance
of coal reserves along the eastern
seaboard, where the majority
Australian electricity generation
by fuel, 200809
of electricity is generated and
consumed.
wind 1.5%
hydro 4.7%
biomass, biogas
and solar 1.2%
gas 15.0%
oil 1.0%
black
coal 54.9%
Source: ABARES.
21
Electricity
Thermal
Black coal
Brown coal
Oil
Gas
Total thermal
by fuel
200405
TWh
200506
TWh
200607
TWh
200708
TWh
200809
TWh
130.0
61.1
1.9
32.3
225.3
131.0
61.6
2.4
30.8
225.8
138.7
57.2
2.1
32.0
230.1
141.7
55.7
2.7
37.7
237.8
143.2
56.9
2.6
39.1
241.8
15.3
0.9
0.1
1.1
0.8
18.1
15.7
1.7
0.1
1.1
0.9
19.5
14.3
2.6
0.1
1.1
0.9
19.0
11.9
3.1
0.2
1.2
1.0
17.4
12.3
3.8
0.3
1.5
1.3
19.2
Renewables
Hydro
Wind
Solar
Biomass
Biogas
Total renewables
Source: ABARES.
Generation capacity
Capacity utilisation
Electricity generation a
Employment
Number of customers
Wholesale price b
- Nominal
- Real c
System minutes
not supplied d
System energy
not supplied
Distribution losses
Unit
2001
02
2002
03
2003
04
2004
05
2005
06
2006
07
2007
08
GW
%
TWh
(000s)
(000s)
44
52
201
36
8 969
44
54
206
37
9 093
45
54
213
37
9 268
45
55
217
38
9 351
45
56
220
41
9 530
47
55
227
44
9 684
49
51
54
52
228
230
46
44
9 892 10 011
c/kWh
c/kWh
3.64
4.45
3.58
4.26
3.27
3.79
3.73
4.22
3.92
4.30
6.17
6.58
5.37
5.54
4.54
4.54
mins
6.91
8.04
4.58
4.43
3.70
5.80
3.51
4.13
MWh
%
2 807
5.80
3 272
5.90
1 704
5.70
560
5.90
1 020
5.90
1 915
5.60
994
5.10
2 102
5.50
a Excludes off-grid electricity. b Volume weighted - average price (National Electricity Market). c 200809 A$.
d Average minutes - excludes Northern Territory.
Sources: Energy Supply Association of Australia, Electricity Gas Australia; ABS.
22
2008
09
Electricity
Capacity
In 200809, Australias principal electricity generation capacity was around
51 gigawatts. The majority of Australias electricity generation is supplied by
steam plants, using coal or natural gas as fuels. Most of Australias black coal
fuelled generation capacity is located in New South Wales and Queensland,
while Queensland also has the largest generation capacity of gas fuelled
plants.
NSW a
SA
WA c
Tas
NT
Aus
MW
MW
MW
MW
MW
11 730
0 8 805
0 1 537
0 6 555
0
780
0
0
510
132 1 280
268
0
0
0
0
640
0
0
0
0
0
0
0
0
22 072
7 335
2 190
640
76
126
MW
Steam
black coal
brown coal
natural gas
multi-fuel
Vic Qld b
MW
Reciprocating engine 0
MW
907
450
338
0
733 1 441
0
0
113
83
0
586
165
0
0
0
322
0
30
0
5 529
450
614
586
215
625
663
0
210
0
131
0
2 494
625
0
0
50
680
0
a Includes the ACT. b Includes generating capacity at Mt Isa. c Includes plants owned by Western Power
Corporation (now Verve Energy) in the South West Interconnected System, and excludes plants operated under
power purchase agreements.
Source: Energy Supply Association of Australia, Electricity Gas Australia 2009.
23
Electricity
200809
forward
capability
reverse
capability
MW
MW
483
1 078
Terranora to Mullumbimby
115
Murray to Dederang
3 114
Buronga to Red Cliffs
1 274
245
1 134
1 780
location
Armidale to Braemar
460
300
220
180
Seaspray to Georgetown
630
480
overhead
790 736
underground
113 705
24
25
South Australia
South Australia
South Australia
Queensland
Queensland
South Australia
start-up
project details
region
Electricity
Electricity
Prices
Australia has low electricity prices compared with most other OECD
countries. Although Australian electricity prices were above those in some
countries such as the United States and the Republic of Korea in 2009, they
were below those in most European countries.
World electricity prices, selected countries, 2009 a
industrial
residential
Denmark
Italy
Netherlands
Ireland
Austria
Luxembourg
Slovak Republic
Japan
Belgium
Portugal
United Kingdom
Spain
Hungary
Sweden
Czech Republic
Finland
Switzerland
France
New Zealand
Australia
Norway
United States
Chile
Chinese Taipei
Thailand (2008)
Rep. of Korea
Italy
Slovak Republic
Ireland
Japan
Hungary
Czech Republic
Netherlands
Luxembourg
Slovenia
United Kingdom
Portugal
Poland
Greece
France
Denmark
Spain
Finland
Switzerland
Sweden
Mexico
Australia
Chinese Taipei
United States
New Zealand (2008)
Norway
Rep. of Korea
Ac/kWh
10
20
30
40
Ac/kWh
10
20
30
a Australian prices estimated using 2004 prices from IEA Energy Prices and Taxes, and ABS index of
electricity prices for households and businesses.
Sources: IEA, Energy Prices and Taxes 2010; ABS.
26
40
50
Electricity
600
500
400
300
200
100
198081
=100
Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep
1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010
households
businesses
Sources: ABS, Producer Price Indexes Australia, cat. no. 6427.0; Consumer Price Index Australia, cat. no. 6401.0.
27
Electricity
500
450
400
350
300
250
200
150
100
50
Queensland
Victoria
Snowy
$/MWh
Jun
1999
Jun
2000
Jun
2001
Jun
2002
Jun
2003
Jun
2004
28
Jun
2005
Jun
2006
Jun
2007
Jun
2008
Jun
2009
Jun
2010
Electricity
200910
share of
total
generation generation
GWh
Victoria
Wambo Power
1 779
Transfield Services
1 769
ERM Power /
Arrow Energy
1 698
BG Group ANZ
Infrastructure Services 295
Origin Energy
262
8 358
Unknown
0.78
0.78
0.74
0.13
0.11
3.66
South Australia
17 345
7.60
11 500
11 313
5.04
4.96
8 595
1 327
1 266
3.77
0.58
0.55
725
267
67
50
20
0.32
0.12
0.03
0.02
0.01
13 455
9 210
7 905
5.89
4.04
3.46
7 241
6 280
5 780
3.17
2.75
2.53
2 312
1.01
Queensland
CS Energy
Stanwell
Tarong Energy
Transfield Services /
Comalco
OzGen / Marubeni
CS Energy / OzGen
Tarong Energy /
TEPCO / Mitsui
GWh
Queensland continued
Macquarie
Generation
26 081
Delta Electricity
23 435
Eraring Energy
14 242
Snowy Hydro
3 930
Marubeni
1 021
TRUenergy
242
Redbank Project Pty Ltd 102
Loy Yang Power
International Power /
Transfield Services
TRUenergy
International Power /
Mitsui
Alcoa
Energy Brix
Prime Infrastructure /
Babcock & Brown
Snowy Hydro
Alinta
AGL
Eraring Energy
share of
total
generation generation
4 545
2 993
2 131
1.99
1.31
0.93
1 178
605
486
358
0.52
0.27
0.21
0.16
Tasmania
Hydro Tasmania
Aurora Energy
7 770
1 077
3.40
0.47
Western Australia b
South West Interconnected
System
17 016
North West Interconnected
System
468
Horizon Power
474
7.44
0.20
0.21
Northern Territory b
Power and Water
Corporation
1 599
a Includes the Australian Capital Territory. b Not part of the National Electricity Market.
Sources: Global Roam, NEM Review; WA Office of Energy; NT Power and Water Corporation, Annual Report 2009.
0.70
30
Collie
PERTH
Geraldton
Dongara
Woodada
Kalbarri
Kings Canyon
Murrin Murrin
Menzies
Kalgoorlie/Boulder
Kambalda
Katherine
Pine Creek
Jabiru
Ti-Tree
Gordon
Anglesea
HOBART
MELBOURNE
Albury
Port
Macquarie
Hunter Valley
Newcastle
Coffs Harbour
BRISBANE
Maryborough
Tarong
Rockhampton
Gladstone
Bundaberg
SYDNEY
Canberra
Gunnedah
Nyngan
Dubbo
Hillston
Buronga
Hay Griffith
Bendigo
Berri
Mt Gambier
ADELAIDE
Port Lincoln
Whyalla
Stanwell
Roma
Barcaldine
Mackay
Mt Stuart
Proserpine
Cairns
Collinsville
Moranbah
Townsville
Georgetown
Barron Gorge
Olympic Dam
Leigh Creek
Woomera
Broken Hill
Alice Springs
Yulara
Borroloola
McArthur River
Nhulunbuy
Tennant Creek
Daly Waters
DARWIN
Kununurra
Argyle
Fitzroy Crossing
,
Esperance
Hopetoun
Albany
Worsley
Windimurra
Wiluna
Mt Keith
Shay Gap
Marble Bar
Telfer
Nullagine
Wittenoom
Jimblebar
Newman
Plutonic
Mt Magnet
, Denham
Carnarvon
Paraburdo
Tom Price
Port Hedland
Karratha
Broome
Derby
Power station
Margaret River
132 kV
110 kV
500 kV
400 kV
330 kV
275 kV
220 kV
Renewable energy
Australia has access to abundant renewable energy sources that are used
for heating, electricity generation and transportation. Renewable energy
accounts for 5 per cent of Australias primary energy consumption. Primary
consumption and production of renewable energy include the quantity of
fuel used in producing secondary forms of energy, such as electricity, and
the associated losses in producing these secondary energy sources, as well
as the fuels used directly by end users, such as the burning of fire wood.
Production
At present, renewable sources used to generate electricity include hydro,
biomass, biogas, wind energy and solar energy. Renewable energy
contributes around 7 per cent to Australian electricity generation, with
4.7 per cent sourced from hydroelectricity (renewable electricity data
are available on page 22 of this report). Wind energy has grown strongly
over recent years and is now 1.5 per cent of total electricity generation.
Emerging renewable energy technologies that are yet to be commercially
deployed include large-scale solar energy plants and geothermal generation
technologies.
200506
200607
200708
PJ
PJ
PJ
PJ
PJ
PJ
Bagasse
101.1
Biogas and biofuels 10.1
Hydroelectricity
58.8
Solar hot water
2.6
Solar electricity
0.3
Wind
1.6
Wood and
woodwaste
97.3
108.3
8.7
56.2
2.6
0.3
3.2
109.1
9.4
57.7
2.4
0.4
6.2
110.8
10.2
52.3
6.0
0.4
9.4
111.9
17.6
43.4
6.5
0.4
11.1
110.1
23.8
44.3
8.2
0.6
13.7
91.5
90.3
92.8
96
102.0
Total
270.8
275.5
281.9
286.9
302.7
271.7
200809
31
Renewable energy
Capacity
The distribution of renewable energy production facilities in Australia reflects
the climatic characteristics of different regions. Hydroelectricity capacity
2010
woodocean and
biogas bagasse waste hydro wind solar geothermal other b
NSW a
Vic
Qld
SA
WA
Tas
NT
Other c
Aus
MW
MW
MW
MW
74
83
19
22
28
4
1
43
42
377
420
231
MW MW
15
10
6
0.0
4 293
769
667
4
32
2 284
179
458
12
868
203
144
0.1
5.1
1.2
0.5
1.9
0.9
0.2
1.1
177
73
8 048 1 864
188
MW
MW
0.2
0.1
3
34
4
4 639
1 344
1 095
906
270
2 432
2
177
0.3
41 10 865
a Includes the ACT. b Mixed biomass feedstocks, municipal waste and black liquor. c Solar PV installations at
unspecified locations.
Sources: Geoscience Australia; Watt, M 2010, National Survey Report of PV Power Applications in Australia 2009.
32
total
MW
Renewable energy
Potential
A range of policy measures have been introduced in Australia to support the
uptake and development of renewable energy. These measures include the
Australian Governments Renewable Energy Target (RET). The expanded RET
began on 1 January 2010, committing the Australian Government to a target
of 20 per cent of Australias electricity supply coming from renewable energy
sources by 2020. The RET scheme requires an additional 45 000 gigawatt
hours a year of renewable energy to be produced by 2020. The target will
be maintained at that level until 2030 when the RET scheme is scheduled to
Bagasse
Black liquor
Hydro
Landfill gas
Sewage gas
Solar electricity
Solar hot water
Wind
Wood waste
Other b
Total
19972009 a
baseline generation
GWh
share
%
GWh
669
104
225
739
100
1 738
7 501
4 212
175
121
4.3
0.7
1.4
4.7
0.6
11.1
48.1
27.0
1.1
0.8
497
154
15 629
264
5
0.01
0
5
33
0.1
15 584
100
16 588
a Reported annual energy generation under the Mandatory Renewable Energy Target scheme, above baseline
levels in 1997. b Includes municipal waste, food waste, agricultural waste and energy crops.
Source: Office of the Renewable Energy Regulator, REC Registry, www.rec-registry.gov.au.
33
Renewable energy
end. In June 2010, legislation was passed to separate the RET scheme into
two parts from 1 January 2011the Small-scale Renewable Energy Scheme
(SRES) and the Large-scale Renewable Energy Target (LRET).
Before the RET scheme, the Mandatory Renewable Energy Target (MRET),
which was in place until 31 December 2009, required an increase in
electricity generation from renewable energy sources of 9500 gigawatt
hours a year by 2010. The renewable energy sources that have experienced
the greatest growth under the MRET are solar hot water, wind energy and
solar electricity. In 2009, Australias annual use of solar hot water was 7501
gigawatt hours higher than in 1997. Electricity generation from wind energy
increased by 4212 gigawatt hours between 1997 and 2009.
Annual average solar radiation
DARWIN
BRISBANE
PERTH
SYDNEY
ADELAIDE
Existing solar power
19 - 21
4-6
22 - 24
7-9
25 - 27
10 - 12
28 - 30
13 - 15
31 - 33
16 - 18
>100 kW
100 - 300 kW
300 - 600 kW
600 - 1000 kW
1000 - 2000 kW
transmission lines
34
MELBOURNE
HOBART
Renewable energy
100
35
Renewable energy
stages of development. Geothermal energy, in the form of hot rock and hot
sedimentary aquifer resources, is a renewable energy source that is currently
relatively undeveloped. There is one geothermal electricity project in
operation in Australia, at Birdsville in Queensland (see Appendix 1), and there
are several proposed geothermal projects at early stages of development.
36
Cocos Island
Bagasse
Landfill methane
Solar
Hydro
Wind
Sewage methane
Other
operating plants
King Island
Flinders
Island
Renewable energy
37
38
Production
Australia accounts for around 6 per cent of world black coal production,
97 per cent of which is sourced from New South Wales and Queensland. The
majority of Australias metallurgical (coking) coal is produced in Queensland,
while production in New South Wales is largely classed as thermal
(steaming) coal. Around three-quarters of this output is sourced from open
cut mines.
by state a
200506
200607
200708
200809
200910
Mt
Mt
Mt
Mt
Mt
Brown coal
Vic
Total
67.7
67.7
65.6
65.6
66.0
66.0
68.3
68.3
68.7
68.7
Black coal
NSW
Qld
Tas
WA
SA
Total
124.6
171.7
0.4
6.7
3.5
306.9
130.9
184.1
0.6
6.0
3.9
325.4
135.0
180.9
0.6
6.2
3.9
326.6
135.9
186.4
0.6
7.0
3.8
333.8
147.4
198.1
0.6
6.8
3.8
356.7
a Saleable production.
Source: ABARES, Australian mineral statistics.
39
Trade
More than three-quarters of Australias black coal production is exported.
Australia accounts for almost one-third of world black coal exports (64 per
cent of metallurgical coal exports and 19 per cent of thermal coal exports).
In the past, infrastructure has
World coal trade, major exporters, 2009
been a constraint on Australian
coal exports; however, recent
metallurgical
expansions to port capacity
Russian
other 3%
have begun to alleviate some
Federation 8%
of these constraints. For
Canada 9%
example, the 17 million tonne
annual capacity expansion at
United States 16%
Dalrymple Bay will support
growth in metallurgical coal
Australia 64%
exports, and the Newcastle
Coal Infrastructure Groups
thermal
30 million tonne annual
other 15%
Indonesia 32%
capacity expansion at the Port
China 3%
of Newcastle will facilitate
Colombia 9%
increased thermal coal exports
from New South Wales.
South Africa 9%
Russian
Federation 13%
Australia 19%
40
by destination
200506
200607
200708
200809
200910
Mt
Mt
Mt
Mt
Mt
Metallurgical coal
Brazil
3.17
China
2.86
Chinese Taipei
7.72
European Union 27 24.34
India
16.39
Japan
44.22
Korea, Rep. of
7.70
Other
14.08
World
120.48
3.05
2.97
8.04
24.87
19.61
48.86
6.25
18.31
131.97
3.87
1.53
6.39
24.51
24.23
50.20
8.36
17.83
136.92
4.19
14.75
2.66
14.69
24.28
42.22
13.05
9.40
125.24
4.23
27.28
5.36
15.61
31.38
48.46
15.86
9.08
157.26
Thermal coal
China
3.99
Chinese Taipei
13.21
European Union 27 2.32
Japan
59.33
Korea, Rep. of
20.24
Other
11.74
World
110.82
3.22
16.23
3.81
58.64
15.06
14.66
111.62
1.48
18.56
2.15
66.92
18.55
7.41
115.07
8.40
20.30
3.72
62.58
30.14
11.22
136.36
13.91
19.55
0.28
66.41
24.84
9.98
134.97
41
Prices
Beginning in April 2010, contract prices for most metallurgical coal from
major producers were set on a quarterly basis, departing from the decadesold annual price-setting system. The majority of thermal coal contract prices
are still set on a Japanese Fiscal Year (JFY, April to March) basis.
Metallurgical coal contract prices for the first three quarters of JFY 2010 have
been settled between Australian producers and Japanese steel mills, the
average of which represents a 65 per cent increase on the previous year.
Thermal coal contract prices for JFY 2010 were settled at US$98 a tonne,
39 per cent higher than the previous year. Contract prices for hard coking,
semi-soft and thermal coal have risen strongly in real terms, underpinned by
strong increases in demand from developing countries. Over the past five
years, real contract prices have risen by 36 per cent, 111 per cent and 40 per
cent, respectively.
Energy in Australia 2011
42
Coal prices a
200506
200607
200708
200809
200910
98.00
112.95
123.20
300.00
377.68
396.46
128.00
150.07
154.55
208.50
227.97
227.97
64.00
73.77
80.45
240.00
302.14
317.17
85.00
99.66
102.63
163.00
178.22
178.22
Thermal coal c
US$/t
A$/t
Real A$/t
55.50
63.97
69.77
125.00
157.37
165.19
70.35
82.48
84.94
98.00
107.15
107.15
52.50
68.75
77.07
a Japanese Fiscal Year beginning 1 April; fob Australia basis; ABARES AustraliaJapan average contract price
assessment; real prices are in JFY 2010 Australian dollar terms. b For example, Goonyella export coal. c For thermal
coal with a calorific value of 6700 kcal/kg (gross air dried).
Source: ABARES, Australian commodity statistics.
44
Production
To date, Australias conventional gas production has been overwhelmingly
sourced from three basins, with the Carnarvon (north-west Western
Australia), Cooper/Eromanga (central Australia) and Gippsland (Victoria)
basins accounting for 96 per cent of production.
Western Australia is the largest gas producing state in Australia, representing
65 per cent of national production in 200910. The Western Australian gas
market is geographically and economically separate to the interconnected
eastern gas markets. With the bulk of Western Australias gas supply
produced as part of LNG projects, the domestic market is uniquely exposed
by state a
2003
04
PJ
2004
05
PJ
2005
06
PJ
2006
07
PJ
2007
08
PJ
2008
09
PJ
2009
10
PJ
26
35
26
26
23
19
18
29
56
36
71
63
88
85
112
124
147
149
168
188
206
Victoria
312
317
360
380
492
357
345
South Australia c
State
Queensland b
Conventional
Coal seam
methane
Total
155
154
144
141
130
124
109
936
975
1 046
1 061
1 140
1 270
Northern Territory d 22
23
22
22
21
20
19
10
10
1 364
1 508
1 599
1 713
1 857
1 813
1 954
a Data converted from volume to energy content using average conversion factors as detailed in Appendix 2.
Conversion factor of 0.037 PJ per gigalitre has been used for all coal seam methane production. b Queensland
conventional gas includes Denison Trough and SuratBowen Basin gas production. c All Cooper/Eromanga Basin
conventional gas production is allocated to South Australia. d Timor Leste gas used in Darwin LNG not included.
Sources: State data; Energy Quest; ABARES.
46
15
16
12
12
Mt
200910
A$b
1999 2001 2003 2005 2007 2009
2000 02 04 06 08 10
volume
value (right axis)
48
Gas prices
200910 dollars
2003
04
2004
05
2005
06
2006
07
2007
08
2008
09
2009
10
2.96
3.51
2.99
3.47
3.03
3.40
3.62
3.96
3.77
3.98
3.32
3.40
2.03
2.03
404.48
8.07
Natural Gas a
Nominal $A/GJ
Real
$A/GJ
LNG b
Real
a Financial year average of daily spot prices in the Victorian gas market. b Export unit value.
Sources: ABARES, Australian commodity statistics; AEMO.
all destinations
from Australia
all origins
Republic of
Korea imports
United States imports
United States pipeline
imports
276
335
311
305
355
401
365
598
652
520
458
473
all origins
all origins
296
294
359
417
451
363
510
358
756
501
499
240
all origins
294
409
345
345
437
205
2009
305
200
269
50
51
52
Australia is a net importer of crude oil. Australias crude oil production was
equivalent to 76 per cent of refinery feedstock (in energy content terms) in
200809. Around 66 per cent (in energy content terms) of Australias refined
product consumption is sourced from domestic refineries. However, 60 per
cent of Australias crude oil production is exported, resulting in 70 per cent of
refinery feedstock being sourced from imports. In contrast, Australia is a net
exporter of liquefied petroleum gas (LPG), with net exports of 37 per cent of
its total production in 200809.
Australian oil and LPG flows, 200809
Units: petajoules
944
refinery
own use
imports
1028
stocks
79
1355
91
617
1388
1913
1264
377
production
exports
domestic consumption
transport
imports
696
exports
126
35
35
15
64
industrial
electricity
commercial
residential
other
Production
In 200910, Australias production of crude oil and condensate declined
by 5 per cent to 25.6 gigalitres. This decline was primarily because of
flooding, which interrupted production in the Cooper Basin. LPG production
increased by 4 per cent to 4097 million litres in 200910.
53
by basin
ML
ML
ML
ML
ML
ML
0
132
1 868
24
2
0
53
1 403
23
2
0
55
1 470
21
2
0
50
826
16
4
0
55
812
19
7
0
55
1 026
17
7
448
7 859
3 831
390
4 524
5 854
394
5 177
7 999
364
3 799
7 817
325
2 716
9 578
321
2 126
9 075
529
401
4 647
0
517
432
489
3 681
0
395
437
742
3 850
0
816
512
814
3 392
0
668
379
1 072
3 922
0
418
313
745
3 233
0
320
20 259
17 247
20 963
18 262
19 303
17 238
0
0
394
20
0
0
0
394
21
0
0
0
33
19
0
0
0
0
21
0
0
0
0
16
0
0
5 265
202
8
5 692
134
0
5 572
143
0
6 436
44
0
7 235
89
205
208
770
3
2
158
247
744
2
3
81
247
804
28
2
90
216
738
99
2
77
183
647
86
2
7 069
7 403
6 930
7 647
Condensate
Adavale
0
Amadeus
0
Bonaparte
307
BowenSurat
23
Canning
0
Carnarvon
Barrow Island
120
North West Shelf 5 041
Other
250
CooperEromanga
Queensland
270
South Australia
221
Gippsland
813
Otway
7
Perth
1
Total
7 052
8 334
continued...
54
Trade
Australia is a net importer of crude oil and refined petroleum products but
a net exporter of LPG. In 200910, Australia imported 27 284 million litres
of refinery feedstock (crude oil and condensate). The high proportion of
imports as a share of total production reflects a significant proportion of
Australias oil production being located off the north-west coast, which
is closer to Asian refineries than domestic refineries on the east coast.
by source
ML
ML
ML
ML
ML
3 391
3 730
635
118
2 059
106
1 151
841
3 289
4 103
1 974
43
2 190
0
573
713
3 666
4 461
2 313
40
1 349
0
775
555
4 178
5 319
2 569
43
1 580
0
478
605
2 971
6 677
3 665
3 660
6 318
3 360
2 918
5 277
2 947
3 846
3 904
4 762
26 056
24 418
25 345
26 223
24 302
27 284
162
237
93
588
4
7 339
423
2 343
98
961
220
691
84
8 452
456
3 210
17
821
8
642
96
7 681
378
4 375
11
785
316
1 044
40
10 215
421
5 149
45
1 704
184
1 050
215
10 217
473
5 808
95
1 960
249
1 070
4
10 252
301
6 039
11 188
14 172
14 018
17 982
19 697
19 970
56
by destination
ML
200910
ML
ML
ML
ML
518
446
957
873
045
752
190
183
965
972
343
280
701
600
089
157
833
975
1 009
403
2 485
4 395
321
3 543
1 421
3 011
16 588
2 185
261
1 931
3 710
235
3 838
622
5 283
18 064
2
3
3
1
3
15
393
2 142
0
264
2 800
308
1 821
384
311
2 824
465
1 587
178
359
2 589
354
1 474
292
380
2 500
383
1 965
80
348
2 776
Refined products
Fiji
Japan
New Zealand
Singapore
Other Pacific
United States
Other
Total
62
74
716
771
274
37
148
2 082
4
84
872
576
131
6
81
1 752
3
71
837
505
275
3
113
1 807
2
56
400
426
256
0
25
1 164
2
31
317
371
73
19
45
858
7
53
1 113
471
156
0
45
1 846
a Does not include LNG exports or ships and aircraft stores. b Includes confidential exports.
Sources: RET, Australian Petroleum Statistics; ABS, International Trade, Australia, cat. no. 5465.0.
58
Prices
From 1986 to 2003, oil traded between US$15 and US$40 a barrel (in real
terms). However, the loss of crude oil production from Venezuela and Iraq
in 2003, combined with growing demand in the United States and Asia,
caused oil prices to increase. Continued political instability in a number of
oil producing countries, the increasing demand in Asia, particularly China,
and speculative demand, drove oil prices to reach $119 a barrel in the June
quarter 2008. However, by the December quarter 2008, oil prices had fallen
by more than 52 per cent to around US$58 a barrel. The rapid fall in oil prices
was caused by falling demand as a result of the global financial crisis.
From the June quarter 2009, oil prices began increasing as a result of market
expectations of higher oil demand associated with economic recovery. By
the first half of 2010, oil prices had increased to average around US$75 a
barrel as economic conditions improved.
120
real (2009)
100
80
60
40
Oil
embargo
begins
Oct 1973
Iraq begins
exporting oil under
UN Resolution 986
Iranian
revolution,
Shah
deposed
20
Hurricane
Ivan
Iraq invades
Kuwait
nominal
US$/bbl
Hurricane
Katrina
WTC attack
invasion
of Iraq
global
financial
crisis
outlook for
world
economy
improves
Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep
1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010
60
Production
The petroleum refining industry in Australia produces a wide range of
petroleum products such as gasoline, diesel, aviation turbine fuel and LPG,
which are derived from crude oil and condensate feedstock. In 200910
Australian refineries produced 16 771 million litres of petrol and 11 720
million litres of diesel, comprising 40 per cent and 28 per cent, respectively,
of Australias total production of petroleum products. In 200910, Australian
refinery production declined by 5 per cent to 41 892 million litres.
Unplanned maintenance at some refineries in late 2009 contributed to lower
production.
Capacity
There are seven major petroleum refineries currently operating in Australia,
which are managed by four companiesBP, Caltex, Mobil and Shell. These
seven refineries have a combined capacity of 44 210 million litres a year. The
largest of these are BPs Kwinana refinery in Western Australia and Caltexs
Kurnell refinery in New South Wales.
61
ML
ML
ML
ML
ML
Automotive gasoline
Automotive diesel oil
Aviation turbine fuel
Fuel oil
Liquefied petroleum
gas a
Industrial and marine
diesel fuel
Bitumen
Lubricants
Aviation gasoline
Heating oil
Other a
17 913
12 822
5 325
1 092
16 528
10 154
5 216
1 048
17 732
11 055
5 332
942
17 079
12 177
5 182
979
17 159
12 231
5 494
872
16 771
11 720
5 341
846
995
1 125
1 387
1 515
1 477
1 204
22
1 091
202
144
106
4 844
31
831
163
119
102
5 363
21
1 356
146
119
86
5 475
3
1 452
121
119
102
5 356
13
1 294
114
105
69
5 283
3
690
74
104
35
5 105
Total products
44 555
40 679
43 652
44 086
44 111
41 892
year
commissioned
capacity
MLpa
Shell
Caltex
1928
1956
4 740
7 810
Queensland
Bulwer Island
Lytton
BP
Caltex
1965
1965
5 910
6 300
Victoria
Altona
Geelong
Mobil
Shell
1949
1954
4 640
6 530
Western Australia
Kwinana
BP
1955
Total
Source: Australian Institute of Petroleum, Downstream Petroleum 2009.
Energy in Australia 2011
8 280
44 210
62
Fuel standards
Fuel quality standards have progressively improved in Australia, with the
aim of reducing the adverse effects of motor vehicle emissions on air quality
and human health and to enable Australia to effectively adopt new vehicle
engine and emission control technologies. Currently, gasoline standards
are in place that require a maximum
sulphur content of 50 parts per million
Fuel standards end of 2010
(ppm) for premium unleaded petrol.
The standard grade unleaded petrol
sulphur content (ppm)
gasoline
diesel remains at 150 ppm sulphur maximum.
A grade of standard unleaded petrol
Australia
50
10 with 10 per cent ethanol is also offered
New Zealand
50
10
as an alternative to unleaded petrol.
Japan
10
10
The quality standard for diesel in
Singapore
50
50
Malaysia
500
500 Australia includes a maximum sulphur
Thailand
500
350 content of 10 ppm. The diesel quality
Indonesia
150
500 standard also allows up to 5 per cent
China
150
150 biodiesel fuel without a labelling
India
150
150 requirement. Australian refineries have
been progressively undertaking capital
Source: Australian Institute of Petroleum, Downstream
Petroleum 2009.
upgrades to meet these standards.
In the AsiaPacific region, many countries have also implemented stricter
fuel quality standards in response to environmental concerns resulting
from rapidly increasing gasoline and diesel consumption. New Zealand
currently has the same sulphur content requirements as Australia, having
reduced maximum sulphur levels in diesel to 10 ppm in 2009. China, India
and Indonesia reduced maximum sulphur levels in gasoline to 150 ppm
between 2008 and 2010, from more than 500 ppm.
63
Biofuels currently represent around 1 per cent of Australias petrol and diesel
supply. There are currently three major fuel ethanol production facilities
in Australia, with a combined capacity of just over 450 million litres a year.
These facilities produce ethanol primarily from wheat starch, grain sorghum
and molasses. Around 67 per cent of ethanol production capacity is located
in New South Wales, at a single production facility in Manildra.
capacity
2010
feedstocks
ML/yr
Fuel ethanol
Manildra Group, Nowra, NSW
300
90
60
Biodiesel
In production
Smorgon Fuels, Melbourne, Vic
100
60
45
45
20
Not in production
Vopak, Darwin, NT
Eco Tech Biodiesel, Narangba, Qld
130
30
There are also three major biodiesel production facilities in Australia, with
additional facilities producing small quantities. Total biodiesel operating
capacity is 275 million litres a year. The majority of Australias biodiesel
production currently occurs in Victoria. Biodiesel facilities in Australia use a
64
range of vegetable oils, animal fats and waste oils as feedstocks, which are
selected according to price and availability.
Prices
The pre-tax component of Australian gasoline prices remains among the
lowest in the OECD and the tax-inclusive gasoline price is the fourth lowest,
following Mexico, the United States and Canada.
Australian wholesale gasoline and diesel prices closely follow movements
in Singapore gasoline prices, which are in turn largely set by world oil
prices. In 200910, 51 per cent of Australias imports of refined petroleum
products came from Singapore.
Petrol price indicators
After increasing by 18 per cent
in 2008, the Singapore gasoline
0.9
spot price declined by 28 per
0.8
cent (in real terms) to average
0.7
A$0.58 a litre, reflecting the
0.6
effect of the slowdown in global
0.5
economic activity on demand for
0.4
0.3
petroleum products. The change
0.2
in gasoline prices closely followed
0.1
movements in oil pricesthe
2010
world trade weighted average
A$/L
1990
1995
2000
2005
2010
price of crude oil declined by
34 per cent in 2009.
Singapore gasoline spot price
world trade weighted average oil price
65
tax
Australia tax
United States
Mexico
Ac/L
50
100
150
200
66
250
300
The transport sector is the largest end user of energy in Australia. More than
35 per cent of Australias final energy use is employed moving people and
goods across the country. Being a large continent characterised by major
population centres located along the coastline, Australia requires goods to
be transported long distances. The transportation sector is the largest final
consumer of liquid fuels (including LPG and refined products), accounting
for 74 per cent of Australias final use of liquid fuels.
Energy consumption
Road transport is the largest user of final energy in the transport sector,
accounting for around three-quarters of the sectors fuel consumption.
Largely reflecting improvements in fuel efficiency, average growth in road
transport fuel consumption has eased steadily over the past 30 years, falling
from around 3 per cent a year in the 1980s to average 1 per cent in the
2000s.
197980
198990
199900
200506
200809
PJ
PJ
PJ
PJ
PJ
Road transport
Railway transport
Water transport
Air transport
Other
611.8
31.0
97.6
80.6
3.6
811.4
30.7
55.6
108.6
6.2
980.4
33.3
55.6
184.6
12.8
1 059.5
35.2
58.4
201.1
23.7
1 070.2
43.1
65.2
230.3
26.0
Total
824.6
1 012.5
1 266.7
1 377.9
1 434.8
a Net energy consumption (defined as total fuel inputs less energy produced).
Source: ABARES, Australian energy statistics.
67
rigid
trucks 7.9%
light
commercial
vehicles
15.7%
motorcycles
0.4%
buses 2.3%
Fuel efficiency
Energy intensity for passenger travel, as measured by passenger kilometres
travelled with 1 gigajoule of energy, accounts for the fuel efficiency of the
vehicle as well as the number of passengers in a vehicle. Cars were relatively
energy intensive in 200708, compared with public transport, particularly rail
and buses.
Energy in Australia 2011
68
Port capacities
The ability to import and export energy in Australia depends heavily on the
capacity of major ports. Australia has nine major coal exporting terminals
located in New South Wales and Queensland. In 200910, these ports
had a combined capacity of almost 350 million tonnes and loaded nearly
300 million tonnes of coal. Australian ports did not operate at capacity in
200910 for a number of reasons, including the temporary closure of some
capacity for expansion work and weather-related incidents.
capacity
200910
short-term
capacity
medium-term
capacity
Mt
Mtpa
Mtpa
Mtpa
96
14
113
16
154
16
210
16
Queensland
Abbot Point
Brisbane
Dalrymple Bay
Gladstone b
Hay Point
Balaclava Island
17
7
63
60
36
25
7
68
75
44
50
7
85
75
44
110
7
85
100
55
35
a Includes Carrington and Kooragang Island. b Includes RG Tanna and Barney Point.
Sources: McCloskey; Ports Corporation of Queensland; Port Waratah Coal Services; Port Kembla Coal Terminal;
Gladstone Ports Corporation.
Infrastructure capacity constraints (including port and rail) have limited the
Australian coal industrys ability to respond to growing global demand over
the past few years. However, recent additions to capacity, together with
more expansions planned over the short to medium term, will help alleviate
these constraints. As at October 2010 there were seven coal infrastructure
projects at an advanced stage of development, with a combined capital cost
of around $3.8 billion. The nine advanced port infrastructure projects will
add a combined 127 million tonnes to annual capacity. There were a further
15 projects at less advanced stages of planning (see Appendix 1).
Energy in Australia 2011
70
72
1500
state/territory government
1000
Australian Government
500
$m
business
2000
01
2002
03
2004
05
2006
07
2008
09
73
74
75
Source: ABS.
Total
Other energy
2
100
2 582.1
56
10
% of sector
total
41.0
108.9
58.2
Environmentally
sustainable energy
activities
170.1
Energy storage,
distribution and supply
91.3
198.5
Energy transformation
Renewable energy
212.7
1 443.5
257.9
$m
business
Preparation and
production of energy
sources
Energy exploration
149.2
3.6
15.6
8.3
5.6
21.4
42.6
5.6
32.2
14.4
$m
100
10
14
29
22
10
% of sector
total
government
133.3
3.9
14.6
9.2
21.8
34.5
13.3
4.9
19.9
11.3
$m
100
11
16
26
10
15
% of sector
total
higher education
2 864.6
52.5
153.7
83.5
207.9
276.3
179.2
235.2
1 573.1
303.2
$m
total
76
Eraring Energy
Black coal
Eraring
77
15 km NE of
Blackwater, Qld
40 km SW of
Newcastle, NSW
location
New project,
under construction
Expansion,
committed
status
25 km SE of
Merredin, WA
New project,
under construction
Power and
Channel Island, NT Expansion,
Water Corporation
under construction
Verve Energy
Kwinana, WA
Refurbishment,
under construction
Origin Energy
12 km W of
New project,
Mortlake, Vic
under construction
Power and
Alice Springs, NT New project,
Water Corporation
under construction
Wind
Collgar Wind Farm UBS IIT/REST
Owen Springs
Gas
Channel Island
Power Station
Kwinana Power
Station rebuild
Mortlake Stage 1
company
project
as at October 2010
2012
206MW
33MW
550MW
2011
2010
200MW
90MW
30MW
240MW
late 2011
2011
2011
2011
expected new
start-up capacity
continued...
$750m
$100m
$710m
$263m
$120m
$35m
$245m
capital
expend.
Appendix 1
Major electricity projects
78
Snowy Hydro
Snowy Hydro
AGL/ Windlab
Systems
Infigen Energy
AGL/ Meridian
Energy
AGL
Energy
Infrastructure
Investments
New project,
under construction
New project,
under construction
Expansion,
under construction
New project,
under construction
Expansion,
under construction
Expansion,
under construction
Cabramurra, NSW Expansion,
committed
Talbingo, NSW
5 km S of
Glenthompson, Vic
40 km S of
Goulburn, NSW
12 km SE of
Jamestown, SA
230 km W of
Melbourne, Vic
12 km SE of
Jamestown, SA
New project,
under construction
New project,
under construction
status
a Summary of projects classified as committed. For proposed projects please refer to source.
Source: ABARES, Electricity generation major development projects, October 2010 listing.
Tumut 3
upgrade
Upper Tumut
expansion
Hydro
Oaklands Hill
Wind Farm
Woodlawn
Wind Farm
Hallett 5
(The Bluff )
Macarthur
Wind Farm
Hallett 4 (North
Brown Hill)
14 km SE of
Crookwell, NSW
location
Acciona Energy 50 km W of
Goulburn, NSW
Union Fenosa
Wind Australia
Crookwell 2
Gunning Wind
Farm
company
project
2014
40MW
50MW
48MW
2011
2011
67MW
420MW
52MW
132MW
47MW
92MW
2011
2013
2011
2011
2011
2012
expected new
start-up capacity
$341m
$147m
$238m
capital
expend.
$20m
$28m
$102m
$200m
$1b
$135145m
Major electricity projects
state
owner
capacity
kW
Bagasse
Pioneer 2
Invicta
Condong
Rocky Point
Tully
Plane Creek
Marian
Proserpine
Farleigh
Inkerman
Victoria
South Johnstone
Mossman
Isis
Racecourse
Mulgrave
Pleystowe
Kalamia
Broadwater
Pioneer
Other operators
Total
Qld
Qld
NSW
Qld
Qld
Qld
Qld
Qld
Qld
Qld
Qld
Qld
Qld
Qld
Qld
Qld
Qld
Qld
NSW
Qld
Biogas
Woodlawn
NSW
Vic
Vic
Vic
NSW
NSW
Vic
Vic
Vic
Vic
63 000
50 000
30 000
30 000
21 400
20 000
18 000
16 000
13 000
12 000
11 800
11 500
11 000
10 700
10 500
10 500
10 100
9 000
8 000
7 200
46 250
419 950
25 560
17 000
10 000
10 000
9 000
8 800
7 500
7 000
7 000
7 000
continued...
state
owner
capacity
kW
South Cardup
Wingfield I
Belrose
Canning Vale
Lucas Heights I
Berwick
Bolivar
Camellia
Rochedale
Luggage Point
Other operators
Total
WA
SA
NSW
WA
NSW
Vic
SA
NSW
Qld
Qld
Geothermal
Birdsville
Total
Qld
Ergon Energy
Ocean
San Remo
Total
Vic
150
150
NSW
SA
NSW
NSW
NSW
SA
WA
Vic
Vic
NT
NT
NSW
WA
NSW
Vic
2 000
1 000
665
500
400
350
304
300
300
288
241
204
203
200
200
Solar
Liddell
Adelaide Showground
Newington
Newcastle - CSIRO
Singleton
Ernaballa
Marble Bar
Ballarat 3
Bendigo 2
Lajamanu
Kings Canyon
Public Schools NSW
Nullagine
Kogarah
Queen Victoria Market
6 000
5 000
4 000
4 000
4 000
4 000
3 500
3 500
3 345
3 200
81 791
231 196
80
80
continued...
Energy in Australia 2011
80
state
owner
capacity
kW
NSW
SA
SA
SA
WA
SA
WA
Hallett 2
Mount Millar
Cathedral Rocks
SA
SA
SA
Cape Bridgewater
Clements Gap
Challicum Hills
Canunda
Vic
SA
Vic
SA
Cape Nelson
Starfish Hill
Discovery Bay
Other operators
Total
Vic
SA
Vic
Infigen Energy
Wind Prospect and Trust Power
AGL
ANZ Energy Infrastructure Trust /
Wind Farm Developments
Infigen Energy
Infigen Energy
Transfield Services Infrastructure
Ltd / Griffin Energy
Energy Infrastructure Trust (EIT )
Transfield Services Infrastructure Ltd
Roaring 40s / Hydro Tasmania &
ACCIONA Energy
Pacific Hydro
Pacific Hydro
Pacific Hydro
International Power / Wind
Prospect Pty Ltd
Pacific Hydro
Transfield Services Infrastructure Ltd
Synergy Wind Pty Ltd
NSW
Qld
SA
NSW
NSW
NSW
WA
Qld
NSW
NSW
Wood/woodwaste
Tumut
Gladstone A&B
Mount Gambier
Mount Piper
Bayswater
Wallerawang C
Muja
Stapylton
Liddell
Vales Point B
132 300
98 700
94 500
91 000
90 000
80 500
79 200
71 000
70 000
66 000
58 000
57 000
52 500
46 000
44 000
34 000
30 000
177 645
1 863 595
17 000
10 000
10 000
5 000
5 000
5 000
5 000
5 000
5 000
5 000
continued...
82
company
Idemitsu
Kosan
Xstrata Coal
Peabody
Energy
Yancoal
Australia
BHP Billiton
Xstrata Coal
Peabody
Energy
Boggabri opencut
Mangoola (Anvil
Hill opencut)
Metropolitan
longwall
Moolarben stage 1
84
Mount Arthur
opencut (MAC20)
Ulan West
Wilpinjong
40 km NE of
Mudgee
Mudgee
5 km SW of
Muswellbrook
near Mudgee
30 km N of
Wollongong
20 km SW of
Muswellbrook
17 km NE of
Boggabri
location
as at October 2010 a
project
Expansion, under
construction
Expansion, under
construction
Expansion, under
construction
New project,
under
construction
Expansion,
committed
New project,
under
construction
Expansion, under
construction
status
2013
2014
2011
2010 (open
cut) 2012
(underground)
2014
2011
2013
expected
start-up
23 Mt
thermal
6.7 Mt thermal
3.5 Mt thermal
8 Mt opencut;
up to 4 Mt
underground
(ROM,
thermal)
1 Mt
8 Mt thermal
2.8 Mt thermal
new capacity
continued...
US$90m
(A$100m)
US$1.1b
(A$1.2b)
US$260m
(A$289m)
$405m
(incl coal
preparation
plant)
$70m
US$880m
(A$978m)
$150m
capital
expend.
Appendix 1
Major new coal, oil and gas projects
continued...
company
location
as at October 2010 a
86
North
Queensland
Bulk Ports
Queensland
Rail
Queensland
Rail
Queensland
Rail
Blackwater System
Power upgrade
Goonyella to Abbot
Pt (rail) (X50)
Rocklands to Kabra
rail duplication
Rockhampton
North
Goonyella
to Newlands
(70 km)
Blackwater
Bowen
Bowen
New project,
committed
Expansion,
committed
Expansion, under
construction
Refurbishment,
under
construction
Expansion, under
construction
status
continued
a Summary of projects classified as committed. For proposed projects please refer to source.
Source: ABARES, Minerals and energy major development projects, October 2010 listing.
North
Queensland
Bulk Ports
project
2011
early 2012
2012
mid-2011
mid-2011
expected
start-up
na
50 Mtpa
9 Mtpa
na
25 Mtpa
increase
new capacity
$66m
$1.1b
$140m
$68m
$818m
capital
expend.
Apache Energy /
Santos
ExxonMobil / BHP
Billiton
Reindeer gas
field/Devil
Creek gas
processing
plant (phase 1)
Turrum
Woodside Energy
Pluto (train 1)
BG Group
NWS North
Rankin B
Queensland
Curtis LNG
project
company
88
Bass St, Vic
80 km NW
of Dampier,
Carnarvon
Basin, WA
Gladstone, Qld
Carnarvon
Basin / Burrup
Peninsula, WA
150 km NW
of Dampier,
Carnarvon
Basin, WA
location
as at October 2010 a
project
New project,
under
construction
New project,
under
construction
New project,
committed
New project,
under
construction
Expansion,
under
construction
status
continued
2011
late 2011
2014
2011
2013
expected
start-up
11 kbpd
condensate,
77 PJ pa
40 PJ pa gas
8.5 Mt
LNG (12Mt
ultimately)
4.3 Mt LNG
967 PJ pa gas
new capacity
continued...
US$1.25b
(A$1.4b)
$1.08b
US$15b
(A$16.7b)
(BG
Groups
Share)
$12.1b
(inc site
works for
train 2)
$5.1b
(A$5.7b)
capital
expend.
90
Appendix 2
Energy content conversions
The factors listed in the following tables are used when converting individual
types of fuel from volume or weight to energy equivalence, or vice versa. The
values are indicative only because the quality of any fuel varies with factors
such as location and air pressure. Values given here apply at a temperature of
15 C and a pressure of 1 atmosphere (101.3 kilopascals). The values are the
gross energy content of the fuelthat is, the total amount of heat that will
be released by combustion.
The usable energy content of uranium metal is 0.56 petajoules a tonne and
of uranium oxide is 0.47 petajoules a tonne. The oxide contains 84.8 per cent
of the metal by weight.
38.8
39.5
41.5
38.3
40.5
57.5
Town gas
synthetic natural gas
other town gas
Coke oven gas
Blast furnace gas
39.0
25.0
18.1
4.0
91
specific
volume
weight
MJ/L
L/t
GJ/t
Aviation gasoline
Automotive gasoline
Power kerosene
Aviation turbine fuel
Lighting kerosene
Heating oil
Automotive diesel oil
Industrial diesel fuel
33.1
34.2
37.5
36.8
36.6
37.3
38.6
39.6
1 412
1 360
1 230
1 261
1 270
1 238
1 182
1 135
46.8
46.4
46.1
46.4
46.5
46.2
45.6
44.9
LPG
propane
butane
mixture
naturally occurring (average)
25.5
28.1
25.7
26.5
1 960
1 760
1 890
1 866
49.6
49.1
49.6
49.4
Fuel oil
low sulfur
high sulfur
Refinery fuel (fuel oil equivalent)
Naphtha
Lubricants and greases
Bitumen
Solvents
Waxes
39.7
40.8
40.8
31.4
38.8
44.0
34.4
38.8
1 110
1 050
1 050
1 534
1 120
981
1 229
1 180
44.1
42.9
42.9
48.1
43.4
42.7
44.0
45.8
37.0
38.7
1 250
1 160
23.4
15.6
1 266
1 263
25
2 174
46.3
44.9
28.0
29.6
19.7
35.0
54.4
92
energy content
energy content
GJ/t
Black coal
New South Wales
Exports
metallurgical coal
thermal coal
Electricity generation
Steelworks
Washed thermal coal
Unwashed thermal coal
Queensland
Exports
metallurgical coal
thermal coal
Electricity generation
Other
29.0
27.0
23.4
30.0
27.0
23.9
30.0
27.0
23.4
23.0
GJ/t
Black coal
Western Australia
Thermal coal
Tasmania
Thermal coal
19.7
22.8
Lignite
Victoria
Briquettes
South Australia
9.8
22.1
15.2
Other
Coke
Wood (dry)
Bagasse
27.0
16.2
9.6