Energy in Australia 2014 - Department of Industry, … ENERGY IN AUSTRALIA | 2014 The Green Paper is built around four key themes — attracting energy resources investment, electricity

Energy in Australia 2014


Energy in Australia

2014

BREE 2014, Energy in Australia 2014, Canberra, November.© Commonwealth of Australia 2014 This work is copyright, the copyright being owned by the Commonwealth of Australia. The Commonwealth of Australia has, however, decided that, consistent with the need for free and open re-use and adaptation, public sector information should be licensed by agencies under the Creative Commons BY standard as the default position. The material in this publication is available for use according to the Creative Commons BY licensing protocol whereby when a work is copied or redistributed, the Commonwealth of Australia (and any other nominated parties) must be credited and the source linked to by the user. It is recommended that users wishing to make copies from BREE publications contact the Executive Director, Bureau of Resources and Energy Economics (BREE). This is especially important where a publication contains material in respect of which the copyright is held by a party other than the Commonwealth of Australia as the Creative Commons licence may not be acceptable to those copyright owners.The Australian Government acting through BREE has exercised due care and skill in the preparation and compilation of the information and data set out in this publication. Notwithstanding, BREE, its employees and advisers disclaim all liability, including liability for negligence, for any loss, damage, injury, expense or cost incurred by any person as a result of accessing, using or relying upon any of the information or data set out in this publication to the maximum extent permitted by law.

ISSN (Online): 1833 - 038XPostal address:Bureau of Resources and Energy EconomicsGPO Box 1564Canberra ACT 2601 AustraliaEmail: [email protected]: www.bree.gov.auAcknowledgements:Energy in Australia 2014 was prepared by Allison Ball, Kieran Bernie, Alex Feng, Caitlin McCluskey, George Stanwix, Thomas Willcock and Nicholas Wokker.Visual analytics by Laura Jones and Jennifer Campbell, Department of Industry. Maps by Geoscience Australia.The authors would like to express their appreciation for the assistance provided by colleagues in BREE, Geoscience Australia, Department of Industry, Department of Environment, the Clean Energy Regulator, the Australian Bureau of Statistics, the Bureau of Infrastructure, Transport and Regional Economics, the Australian Energy Market Operator, the Independent Market Operator of Western Australia, and Northern Territory Power and Water Corporation. Cover image source: Shutterstock

ENERGY IN AUSTRALIA | 2014 i

ForewordAustralia’s economy and prosperity are built on access to secure, affordable and reliable energy. Our energy diversity is one of Australia’s natural strengths and one of our best competitive advantages. This diversity provides Australian homes and business access to the energy needed to build our industries and our communities. Our coal, gas and uranium exports supply global markets hungry for energy security. The depth of the Australian energy

resource base will support continued energy production well into the future.

The energy sector plays a vital role in the Australian economy, accounting for 7 per cent of GDP and $71.5 billion in export earnings in 2013–14. Australia is the among the world’s largest exporters of LNG, coal and uranium, and our importance to global energy markets will continue to grow. Energy related industries also contributed 1.5 per cent to total Australian employment in 2013–14, and provided significant infrastructure investments.

The Australian energy market has undergone significant transformation in recent years as a result of declining demand and changing patterns of consumption.

It is essential that we have a long-term framework in which the energy sector can grow, and adapt to the transformations taking place in Australian and global energy markets. In September, the Australian Government released the Energy Green Paper, ahead of the preparation of the Energy White Paper which will be a comprehensive blueprint for Australia’s energy future.

ENERGY IN AUSTRALIA | 2014ii

The Green Paper is built around four key themes — attracting energy resources investment, electricity prices, building gas supply and improving market operation and security, and innovation and energy productivity. Getting our policy settings right will facilitate further growth and enhance productivity.

To visualise and plan for where we are going, it is vital to know where we are now. Energy in Australia 2014 provides facts and figures on Australia’s energy sector, covering all areas of energy production and use, from natural resources through to final consumption.

Now in its tenth year, Energy in Australia 2014 is an essential source of information for policy makers and industry alike in understanding Australia’s energy markets, how we supply and use energy in Australia, and informing policy development and investment in the energy sector.

The production of objective economic advice, analysis and statistics for the resources and energy sectors is a high priority for the Australian Government. From 1 December, the activities of the Bureau of Resources and Energy Economics will come under the Office of the Chief Economist in the Department of Industry. This will consolidate the Department’s extensive economic expertise in one place, and ensure that timely, accurate and objective information on Australia’s resources and energy sectors continues to be available to all.

The Hon Ian Macfarlane MPMinister for Industry

ENERGY IN AUSTRALIA | 2014 iii

ContentsForeword ........................................................................... i

Data sources ....................................................................vi

Abbreviations and acronyms ...........................................vii

Overview.........................................................................viiiEnergy resources ................................................................. 1Energy production ................................................................ 1Economic contribution .......................................................... 3Energy consumption ............................................................ 4Energy trade ......................................................................... 6

2. Energy resources ....................................................... 11Overview ............................................................................ 12Coal .................................................................................... 16Oil ....................................................................................... 16Gas ..................................................................................... 17Renewables ...................................................................... 19

3. Energy consumption ................................................... 23Overview ............................................................................ 24Energy intensity .................................................................. 25By energy type ................................................................... 26By industry ......................................................................... 30Energy efficiency ................................................................ 35Energy expenditure ............................................................ 37

ENERGY IN AUSTRALIA | 2014iv

4. Electricity .................................................................... 39The Australian electricity market ........................................ 40Electricity production .......................................................... 42Capacity ............................................................................ 46Electricity consumption ..................................................... 49Electricity prices ................................................................ 52

5. Renewable energy ..................................................... 57Overview ............................................................................ 58Production and consumption .............................................. 58Electricity generation .......................................................... 61Solar energy ....................................................................... 66Wind energy ....................................................................... 68

6. Coal ............................................................................ 69Production .......................................................................... 70Consumption ..................................................................... 73Trade .................................................................................. 75Prices ................................................................................. 78Low emissions coal ............................................................ 79

7. Gas ............................................................................. 81Overview ............................................................................ 82Production .......................................................................... 82Domestic consumption ....................................................... 88LNG exports ....................................................................... 91Prices ................................................................................. 95

ENERGY IN AUSTRALIA | 2014 v

8. Petroleum production and refining.............................. 99Overview .......................................................................... 100Upstream production ........................................................ 100Downstream production ................................................... 104Non-conventional liquid fuels ............................................114Prices ................................................................................116

9. Transport .................................................................. 119Energy use ....................................................................... 120Fuel standards ................................................................. 125Fuel prices ........................................................................ 125

10. International comparison ....................................... 127Energy prices .................................................................. 128Energy resources ............................................................. 128Renewables ..................................................................... 135Energy consumption ........................................................ 135Energy trade ..................................................................... 135

Appendix: Units and conversions ................................. 139

ENERGY IN AUSTRALIA | 2014vi

Data sourcesThe information in Energy in Australia 2014 is obtained from BREE and other sources, listed below. It is based on latest data available at the time of compilation, which can vary between datasets, energy types and industries. In particular, energy consumption statistics tend to lag behind energy production and trade statistics. Australian statistics are generally reported in fiscal years (1 July to 30 June), while international comparisons are generally reported in calendar years.

AME Group – www.amegroup.comAustralian Bureau of Statistics – www.abs.gov.auAustralian Energy Market Commission – www.aemc.gov.auAustralian Energy Market Operator – www.aemo.com.auAustralian Energy Regulator – www.aer.gov.auAustralian Institute of Petroleum – www.aip.com.auBiofuels Association of Australia – www.biofuelsassociation.com.auBP – www.bp.com Bureau of Infrastructure, Transport and Regional Economics – www.bitre.gov.auBureau of Resources and Energy Economics – www.bree.gov.auClean Energy Regulator – www.cleanenergyregulator.gov.auDepartment of Industry – www.industry.gov.auEnergy Supply Association of Australia – www.esaa.com.auEnergyQuest – www.energyquest.com.auGeoscience Australia – www.ga.gov.auIndependent Market Operator – www.imowa.com.auInternational Energy Agency – www.iea.org

ENERGY IN AUSTRALIA | 2014 vii

Abbreviations and acronymsABS Australian Bureau of StatisticsAEMC Australian Energy Market CommissionAEMO Australian Energy Market OperatorAER Australian Energy RegulatorBREE Bureau of Resources and Energy EconomicsCCS Carbon capture and storageCER Clean Energy RegulatorCSG Coal seam gasEDR Economic demonstrated resourcesESAA Energy Supply Association of AustraliaIEA International Energy AgencyLNG Liquefied natural gas LPG Liquefied petroleum gas MEPS Minimum energy performance standardsNEM National electricity marketNGL Natural gas liquids OECD Organisation for Economic Cooperation and DevelopmentOPEC Organization of the Petroleum Exporting CountriesORF Other refinery feedstockPJ PetajoulesSDR Sub-economic demonstrated resourcesTWh Terawatt hoursWEM Wholesale Electricity Market, Western Australia

ENERGY IN AUSTRALIA | 2014viii

1

$71.5 billionEnergy exports in 2013–14

7%Energy industry share of economy in 2013–14

68%Net exports share of energy production in 2012–13

8thLargest energy producer in the world in 2012

1. Overview

ENERGY IN AUSTRALIA | 2014 1

1Energy resourcesAustralia has extensive and diverse energy resources, including both renewable and non-renewable energy. Fossil fuel resources include black and brown coal, and conventional and unconventional gas and oil. Australia also has the world’s largest uranium resources. Renewable energy resources include wind, solar, hydro, bioenergy, geothermal, wave and tidal. These resources are widely distributed around the country and with the exception of oil, are expected to last for many more decades, even with increasing production.

Energy productionAustralia produces energy for its own use and for export overseas. Primary energy production in Australia was 19 318 petajoules in 2012–13. Net exports (exports minus imports) were equivalent to 68 per cent of energy production in that year. Australia is the world’s eighth largest energy producer, accounting for 2.4 per cent of world energy production in 2012.

Coal accounted for 59 per cent of Australia’s energy production on an energy content basis in 2012–13, followed by uranium (22 per cent). Natural gas accounted for 13 per cent of energy production, oil a further 5 per cent, while renewable energy—mostly bioenergy and hydro—contributed 2 per cent. Energy production rose by 9 per cent in 2012–13, supported by increased black coal, uranium and natural gas production for export markets. Over the past ten years, energy production has grown by 2 per cent a year on average. Queensland and New South Wales are the largest energy producing states, with most of Australia’s black coal production.

ENERGY IN AUSTRALIA | 20142

Figure 1.1: Australia’s energy production, by fuel type

5 000

10 000

15 000

20 000

1977-78 1982-83 1987-88 1992-93 1997-98 2002-03 2007-08 2012-13PJ

Coal Uranium Natural gasOil and LPG Renewables

Source: BREE 2014, Australian Energy Statistics, Table J.

Figure 1.2: Australia’s energy production and consumption, by state and territory, 2012–13

1 000

2 000

3 000

4 000

5 000

6 000

7 000

NSW/ACT Vic Qld WA SA Tas NTPJ

production consumption

Source: BREE 2014, Australian Energy Statistics, Tables C, I.


1Table 1.1: Australia’s energy production, by fuel type, 2012–13

2012-13average annual

growth

PJ share (%)

2012-13 (%)

10 years (%)

Black coal 10 790 55.9 9.2 4.1

Brown coal 647 3.4 -13.3 -1.3

Natural gas 2 439 12.6 14.3 5.8

Crude oil and condensate 787 4.1 -11.6 -4.0

LPG 95 0.5 -7.5 -3.0

Renewables 330 1.7 11.5 1.9

Uranium 4 229 21.9 17.5 -0.7

Total 19 318 100.0 9.4 2.3

Source: BREE 2014, Australian Energy Statistics, Table J.

Economic contributionThe energy industry is an important part of the Australian economy. In 2013–14 it contributed nearly $106 billion to industry gross value added, around 7 per cent of Australia’s gross domestic product. The coal mining and oil and gas extraction industries are the largest, contributing $64 billion to industry gross value added in 2013–14. The electricity supply industry contributed a further $22 billion. Energy related industries also contributed 1.5 per cent to total Australian employment in 2013–14, and provided significant infrastructure investments.


Energy consumptionAustralia’s energy consumption has been growing slowly over the past ten years, at an average annual rate of 1.1 per cent. In 2012–13, primary energy consumption declined by 0.5 per cent, to 5884 petajoules, mainly due to a decline in energy use in the electricity generation sector. The electricity generation, manufacturing and transport sectors are the largest energy consumers in Australia, accounting for around three-quarters of energy consumption in 2012–13.

Oil is the largest source of energy in Australia, accounting for 38 per cent of primary energy consumption in 2012–13. Coal accounted for a further 33 per cent of energy consumption in 2012–13, its lowest share since the early 1970s. Natural gas and renewable energy accounted for 24 per cent and 6 per cent respectively. Of the 6 per cent renewables, the majority was provided by bioenergy and hydro.

Figure 1.3: Australia’s primary energy consumption, 2012–13

Coal33.1%

Oil37.7%

Gas23.6%

Bioenergy3.6%

Hy dro1.1%Wind0.4%Solar0.5%

Renewables5.6%

Source: BREE 2014, Australian Energy Statistics, Tables A, D.


1Table 1.2: Australia’s energy-related industries

2012-13 2013-14

gross value

added

gross fixed

capital formation employment

gross value

added employment

A$b A$b ‘000 A$b ‘000

Coal mining 28.9 12.1 45.6 31.1 56.9

Oil and gas extraction 32.0 50.5 20.4 32.8 24.2

Petroleum and coal product manufacturing

19.1 0.3 10.0 18.1 7.4

Electricity supply 22.7 12.8 69.8 22.2 62.8

Gas supply 1.4 0.8 11.3 1.4 18.6

Energy industries total 104.1 76.6 157.1 105.6 169.9

Australian total 1 525.3 211.6 11 388.7 1 569.5 11 482.1

Share of Australian total (%)

6.8 36.2 1.4 6.7 1.5

Notes: Renewable energy is not available as a separate industry. Gross fixed capital formation not available for 2013-14 at the time of compilation.

Sources: ABS 2014, 5206.0 Australian National Accounts: National Income, Expenditure and Product; 8155.0 Australian Industry; 6291.0 Labour Force, Australia.


Energy tradeAustralia’s net energy exports (exports minus imports) in 2012–13 were equivalent to 68 per cent of production. Energy exports accounted for 31 per cent of the value of Australia’s total commodity exports in 2013–14, and were valued at $71.5 billion. Coal was the largest energy export earner, with a value of around $40 billion in 2013–14, followed by LNG ($16.4 billion) and crude oil ($11.1 billion).

Earnings from energy exports fell by 12 per cent in 2012–13, largely as a result of lower coal prices. Earnings rose by 6 per cent in 2013–14, supported by higher LNG prices. Australia’s real energy export earnings have increased by 8 per cent a year on average over the past ten years.

Figure 1.4: Australia’s energy exports

10

20

30

40

50

60

70

80

90

1989-‐90 1992-‐93 1995-‐96 1998-‐99 2001-‐02 2004-‐05 2007-‐08 2010-‐11 2013-‐14

2013-‐14 A$b

Coal Crude, ORF, LPG Petroleum products LNG Uranium

Source: BREE 2014, Resources and Energy Quarterly.


1Box 1: Energy flows through the Australian economy

Australia produces energy directly from natural resources, such as coal, crude oil, natural gas and wood, referred to as primary energy. This primary energy can be exported, or used domestically. Domestically, primary energy is generally transformed in power plants and refineries into other types of energy such as electricity, petrol and diesel (derived fuels), for use by Australian industries and households. Industries and households can also use primary energy sources such as natural gas and wood directly. Australia imports both primary energy such as crude oil, and derived energy products such as diesel and petrol.

Energy consumption is a net concept. To avoid double counting, derived fuels that are produced domestically are subtracted from primary fuels, as the energy embodied in these fuels is already accounted for in the primary fuels that they are produced from.

Figure 1.5 shows the flow of energy through the Australian economy. In 2012–13 Australia produced 2439 petajoules of natural gas, and imported a further 244 petajoules of gas from the Joint Petroleum Development Area in the Timor Sea. Of this combined total, 1303 petajoules were exported as liquefied natural gas, 588 petajoules were transformed into other energy types such as electricity, and 799 petajoules were used directly by industries and households (plus a statistical discrepancy of 6 petajoules).


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201

2–13

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1Figure 1.6: Energy trade insight

Source: BREE 2014, Australian Energy Statistics, Resources and Energy Quarterly.


Australia’s energy imports were valued at $40.8 billion in 2012–13. Crude oil and refined petroleum products were the predominant energy imports, which were valued at $20.4 billion and $17.9 billion respectively. Australia is a net importer of crude oil and refined petroleum products, with net imports accounting for 35 per cent of oil consumption in 2012–13, compared with 7 per cent a decade ago.

Figure 1.7: Australia’s energy imports

5

10

15

20

25

30

35

40

45

1993-‐94 1997-‐98 2001-‐02 2005-‐06 2009-‐10 2013-‐14

2013-‐14 A$b

Crude and ORF Petroleum products Natural gas

Note: Natural gas value confidential from 2013–14.Source: BREE 2014, Resources and Energy Quarterly.


2

$5.3 billionExploration expenditure on energy in 2013–14

1stLargest uranium resources in the world in 2013

9%Share of world black coal resources in 2013

7-10 yearsCrude oil resources remaining in 2012

2. Energy Resources


OverviewEnergy can be extracted or captured directly from natural resources, including coal, crude oil, natural gas, wood, wind and solar energy, or by transforming these sources into other types of energy, such as burning coal to make electricity and refining crude oil to make petrol and diesel. Australia has abundant and diverse natural resources, including non-renewable and renewable resources. These high quality energy resources are widely distributed across the country and supply energy for domestic consumption and the world market.

Australia holds the world’s largest economic uranium resources, the fourth largest black and brown coal resources, and substantial conventional and unconventional gas resources. This globally significant resource base is capable of meeting domestic and export demand for many more decades. There remain significant underexplored and unquantified resources both onshore and offshore, with the potential for future resource discovery and development.

Identified resources of crude oil, condensate and liquefied petroleum gas are more limited, and Australia is increasingly reliant on oil imports.

Australia has significant renewable energy resources, with utilisation growing strongly over the past decade. Australia has some of the highest solar radiation levels per square kilometre of any continent in the world. Wind, geothermal, wave and tidal energy resources are also world class and hold considerable potential.


2

Figure 2.1: Energy Resources Insight

500 000

1 000 000

1 500 000

2 000 000

2 500 000

1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 PJ

BROWN COAL

BLACK COAL

30 000

60 000

90 000

120 000

150 000 AUSTRALIA’S ECONOMIC DEMONSTRATED RESOURCES OF GAS

AUSTRALIA’S ECONOMIC DEMONSTRATED RESOURCES OF OIL

AUSTRALIA’S ECONOMIC DEMONSTRATED RESOURCES OF COAL

1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 PJ

CONVENTIONALGAS

COAL SEAM GAS

5 000

10 000

15 000

20 000

25 000

30 000

1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 PJ

CRUDE OIL

CONDENSATE

LPG

Source: Geoscience Australia.


Table 2.1: Australia’s Economic Demonstrated Resources, as at December 2013

Share of

world

Resources to

production

volume PJ % Yearsa

Coal Brown 44.2 Gt 454 889 22 510

Black 62.1 Gt 1 691 468 9 110

Oil b Crude 856 Mbbl 5 038 0.2 7-10

LPG 959 Mbbl 4 118 na 16

Condensate 1 938 Mbbl 11 403 na 25

Gas Conventional b 2.83 tcm 110 120 1.6 51

Coal seam gas 1.16 tcm 45 013 na 150

Uranium c 1 167 kt 601 005 34 170

a 2012 production rate. b As at December 2012. c Reasonably assured resources recoverable at costs less than US$130/kg. Sources: Geoscience Australia 2014, Australia’s Identified Mineral Resources; Geoscience

Australia and BREE 2014, Australian Energy Resource Assessment; BP 2014, Statistical Review of World Energy.


2

Map 2.1: Australia’s energy resources, excluding hydro and bioenergy

Source: Geoscience Australia and BREE 2014, Australian Energy Resource Assessment.


CoalAustralia holds around 9 per cent of the world’s proven reserves of black coal and 22 per cent of the world’s proven reserves of brown coal. Australia’s total coal reserves rank fourth behind the United States (27 per cent), Russia (18 per cent) and China (13 per cent).

At the end of 2013, Australia’s recoverable Economic Demonstrated Resources (EDR) of black coal were estimated at 1 691 468 petajoules (62.1 Gt). It is estimated that there are a further 137 045 petajoules (5.1 Gt) of Sub-economic Demonstrated Resources (SDR) of black coal. Brown coal EDR were estimated at 454 889 petajoules (44.2 Gt) at end of 2013. At current production rates, Australia’s black coal EDR will support a further 110 years of production. Accessible brown coal EDR will support a further 510 years of production.

Coal deposits are generally located in the east of Australia close to areas of domestic energy demand. Most of Australia’s recoverable black coal EDR is located in Queensland (61 per cent) and New South Wales (36 per cent), in the Bowen, Surat and Sydney basins. The majority of Australia’s brown coal resources are in Victoria’s Gippsland Basin.

OilAustralia has limited resources of crude oil, and most known remaining oil resources are condensate and naturally occurring liquefied petroleum gas (LPG) associated with large offshore gas fields. Australia holds around 0.2 per cent of world crude oil reserves.

At the end of 2012, Australia’s EDR of oil were estimated at 20 559 petajoules (3753 Mbbl), comprising 11 403 petajoules (1938 Mbbl) of condensate, 5038 petajoules (856 Mbbl) of crude oil and 4118 petajoules (959 Mbbl) of LPG. Australia’s ratio of EDR to current production is estimated at around 16 years for LPG, 7 to 10 years


2

for crude oil and 25 years for condensate. The ratio for oil has remained around this level since the 1980s due to new discoveries and existing resources becoming more economic.

Approximately 94 per cent of Australia’s oil resources are located in four basins. These are the Carnarvon, Browse and Bonaparte Basins off the north-west coast of Western Australia and the Northern Territory, and the Gippsland Basin off the south-east coast of Victoria.

GasAustralia holds approximately 2 per cent of world EDR of conventional gas. At the end of 2012, Australia’s EDR of conventional gas were estimated at 110 120 petajoules (2.83 tcm). At current production rates, there are sufficient EDR of conventional gas to last another 51 years.

Australia also has significant unconventional gas resources. Coal seam gas (CSG) EDR has doubled in the past three years to an estimated 45 013 petajoules (1.16 tcm) at the end of 2013. This is equivalent to more than one-third of Australia’s conventional EDR. Total identified resources of CSG are estimated to be 223 454 petajoules (5.75 tcm). Australia may also have significant resources of shale and tight gas, although estimates of potential resources have a high degree of uncertainty.

Most (around 92 per cent) of Australia’s conventional gas resources are located in the Carnarvon, Browse and Bonaparte basins off the north-west coast. There are also resources in south-west, south-east and central Australia. Large CSG resources exist in the coal basins of Queensland and New South Wales. Most potential shale gas resources are in South Australia.


Uranium Australia has the world’s largest EDR of uranium with an estimated 601 005 petajoules (1167 kt) at the end of 2013. This represents around one-third of global resources. At current rates of production, Australia’s uranium resources are sufficient for a further 170 years of production.

The majority of Australia’s uranium resources are located in South Australia, the Northern Territory and Western Australia. The Olympic Dam deposit in South Australia is the world’s largest uranium deposit. Australia has significant potential for the discovery of new uranium resources, including through the newly released Woomera Protected Area in South Australia.

ExplorationExploration expenditure on energy resources in Australia was $5.3 billion in 2013–14, one of the highest levels of spending on record. Oil and gas accounted for 92 per cent of total expenditure in 2013–14, at around $4.9 billion. Oil and gas spending rose by 46 per cent in 2012–13, reflecting historically high oil prices and the large number of projects under development. This level of spending was maintained in 2013–14.

In contrast, coal and uranium exploration spending has dropped significantly in the past two years, as Australia continues to transition from the investment to production phase of the mining boom. Slowed expenditure can also be attributed to softening coal and uranium prices and risk mitigation as companies look to confirm brownfield reserves instead of expanding into higher risk greenfield exploration activities.


2

Figure 2.2: Australia’s energy exploration expenditure

1000

2000

3000

4000

5000

6000

1999-‐00 2001-‐02 2003-‐04 2005-‐06 2007-‐08 2009-‐10 2011-‐12 2013-‐14

2013-‐14 A$m

Oil and gas Black coal Uranium

Source: ABS 2014, 8412.0 Mineral and petroleum exploration.

Renewables Australia has a rich diversity of renewable energy resources, including wind, solar, geothermal, hydro, wave, tidal and bioenergy. Uptake of renewable energy is growing and there is significant potential for further development. Renewable energy resources are generally transient and not always available, and are therefore not readily classifiable and comparable to non-renewable resources.

Australia’s wind resources are some of the best in the world, primarily in the south-western, southern and south eastern margins and extending hundreds of kilometres inland. These resources are making an increasing contribution to Australia’s electricity generation. High solar radiation levels over much of Australia provide some of the best solar resources in the world, and developments in commercial scale solar technologies are expected to encourage further utilisation. The annual solar radiation falling on Australia is approximately 58 000 000 petajoules, nearly ten thousand times larger than Australia’s current annual energy consumption.


Map 2.2: Australia’s solar energy potential


Australia has significant geothermal resources, potentially suitable for electricity generation and direct use. Identified geothermal resources as of December 2012 are estimated at around 440 570 petajoules. However, some of the more prospective geothermal resources in central Australia are long distances from infrastructure and centres of demand, and potentially costly to develop. There is presently no commercial scale production of geothermal electricity in Australia.


2

Map 2.3: Australia’s geothermal energy potential


Australia has world class wave energy potential, particularly along the south-western and southern coasts. Australia also has potential tidal energy resources off the northwest coast of Western Australia. Wave and tidal energy projects are still at the development/pilot stage. Hydro has limited potential for further development, with any future growth being determined by water availability. Australia’s technically feasible hydro energy potential is estimated to be around 216 petajoules a year.


Map 2.4: Australia’s wind energy potential


Potential bioenergy resources in Australia are large and diverse. Bioenergy is derived from biomass (organic materials) to generate electricity and heat, and to produce liquid fuels for transport. Potential resources include wood, wood waste, bagasse, gas from landfill and sewage, crops and animal fats. Commercialisation of advanced bioenergy technologies is likely to increase the range of resources, such as non-edible parts of plants and algae.


35884 PJEnergy consumption in 2012–13

38%Oil share of energy consumption in 2012–13

9%Increase in energy use in mining in 2012–13

28%Electricity industry share of energy consumption in 2012–13

3. Energy Consumption


OverviewAustralia consumed 5884 petajoules of energy in 2012–13, with 94 per cent coming from fossil fuel sources (coal, oil and gas). Australia was the world’s nineteenth largest energy consumer in 2012, and ranked sixteenth on a per person basis.

While Australia’s long-term economic growth has been relatively stable over recent decades, growth in energy consumption has gradually slowed over the same period.

Before the 1990s, Australia’s growth in energy consumption largely mirrored economic growth. Following average annual growth of around 5 per cent during the 1960s, growth in energy consumption fell during the 1970s to around 4 per cent a year, largely as a result of the two oil price shocks.

During the 1980s, economic recession and rising energy prices resulted in annual growth falling to around 2.5 per cent. In the 1990s annual growth in energy consumption remained around 2.6 per cent, and around 1.7 per cent in the 2000s.

Since 2010–11, Australia’s energy consumption has been relatively flat, with a fall in energy use in electricity generation offsetting growth in end use sectors such as manufacturing, transport and mining.


3

Figure 3.1: Annual growth in Australia’s energy consumption

100

200

300

400

500

600

1964-65 1970-71 1976-77 1982-83 1988-89 1994-95 2000-01 2006-07 2012-13

1964-65 = 100

GDP Energy consumption

Source: BREE 2014, Australian energy statistics, Table B.

Energy intensitySince the 1990s, there has been a steady decline in energy intensity (the ratio of energy use to activity in the Australian economy). This can be attributed mainly to improvements in energy efficiency associated with technological advancement, and a shift in industry structure towards less energy-intensive sectors such as commercial and services. In 2012–13, energy intensity, as defined by the ratio of energy consumption to gross domestic product, declined by 3 per cent.

Trends in energy intensity are not uniform across states and territories. Western Australia and Queensland have higher energy intensities than other states, mainly due to the mining and energy intensive manufacturing industries accounting for a higher proportion of their economies and energy consumption. Tasmania has a lower energy intensity, with less energy-intensive industry sectors than in other states.


Figure 3.2: Energy intensity trends, by state

70

80

90

100

110

1992-93 1997-98 2002-03 2007-08 2012-13

1992-93 = 100

Aus Vic WA NSWSA QLD Tas

Source: BREE 2014, Australian Energy Statistics, Table B.

By energy typeFossil fuels including coal, oil and gas dominate Australia’s primary energy consumption. Oil is Australia’s largest source of energy, accounting for 38 per cent of consumption in 2012–13. Increased use of oil in the mining and transport sectors contributed to growth of 1 per cent in oil consumption in 2012–13.

Coal is the second largest primary fuel consumed in Australia, but its share of total energy consumption is falling. In 2012–13 black and brown coal accounted for 33 per cent of energy consumption, the lowest share since the early 1970s. Coal consumption fell by 6 per cent in 2012–13, underpinned by falling coal use in the electricity generation and iron and steel sectors.


3

The share of natural gas in Australia’s energy mix has increased in recent years, supported by greater uptake in the electricity generation sector and growth in industrial use, particularly in the non-ferrous metals sector. In 2012–13, natural gas accounted for 24 per cent of energy consumption. Gas consumption rose by 2 per cent in 2012–13, supported by an expansion in alumina output and additional gas-fired electricity generation capacity.

Renewable energy sources accounted for the remaining 6 per cent of Australia’s energy consumption in 2012–13. Renewable energy consumption rose by 12 per cent in 2012–13, with growth in all renewable energy sources except for biogas and biofuels.

Figure 3.3: Australia’s primary energy consumption, by energy type

1 000

2 000

3 000

4 000

5 000

6 000

1972-73 1976-77 1980-81 1984-85 1988-89 1992-93 1996-97 2000-01 2004-05 2008-09 2012-13PJ

Coal Oil Gas Renewables

Source: BREE 2014, Australian Energy Statistics, Table C.


Figure 3.4: Fuel mix in primary energy consumption, 2012–13

0%

20%

40%

60%

80%

100%

Aus NSW Vic Qld WA SA Tas NTCoal Oil Gas Renewables


Table 3.1: Australia’s primary energy consumption, by energy type, 2012–13

2012-13 average annual growthPJ share (%) 2012-13 (%) 10 years (%)

Coal 1 946 33.1 -5.9 -1.4Oil 2 221 37.7 1.3 2.4Gas 1 387 23.6 2.2 3.3Renewables 330 5.6 11.5 1.9Total 5 884 100 -0.5 1.1



3

Table 3.2: Australia’s energy consumption, by energy type, 2012–13

PJ

ConsumptionBlack coal 1 319Brown coal 646Coke 60Coal by-products 55Liquid/gas biofuels 27Wood, wood waste 89Bagasse 95Refinery input 1 443Petroleum products 2 250Natural gas 1 387Solar hot water 13Total electricity 897

hydro electricity 66wind electricity 26solar electricity 14

Production of derived fuelsCoke 78Coal by-products 56Petroleum products a 1 472Thermal electricity 791

Total energy consumption b 5 884

a Production may exceed refinery input as some petroleum products are produced from other petroleum products.

b Total energy consumption is the total quantity of primary and derived fuels consumed less the quantity of derived fuels produced.

Source: BREE 2014, Australian Energy Statistics, Tables A and F.


By industryAustralian energy consumption fell marginally in 2012–13. Growth in energy consumption in the mining, manufacturing and commercial and services sectors was offset by a fall in energy use for electricity generation. Final energy consumption (energy consumed by end-use sectors excluding energy used in energy transformation/conversion activities such as electricity generation) rose by 2 per cent in 2012–13.

The electricity, transport and manufacturing sectors were the largest energy users in 2012–13. Together these sectors accounted for around three-quarters of Australia’s energy consumption. The electricity sector accounted for the largest share, 28 per cent in 2012–13. In 2012–13, energy consumption in this sector (including fuel inputs to electricity generation and own use) declined by 6 per cent, mainly due to reduced electricity demand.

The transport sector was the second largest energy consumer, accounting for 26 per cent of the total. In 2012–13, increased energy use in road, rail and air transport resulted in a marginal increase in energy consumption in the transport sector.

New South Wales and Victoria, the largest two energy consuming states, together account for around half of energy consumption in Australia. In all states and territories except Tasmania and North Territory, electricity, transport, and manufacturing are the largest energy using sectors. The electricity sector has the highest share in Victoria, accounting for 36 per cent of state energy consumption in 2012–13; while transport has the highest share in New South Wales. The mining sector is among the largest energy users in the Northern Territory and Western Australia.


3

Figure 3.5: Australia’s energy consumption, by industry

0

1 000

2 000

3 000

4 000

5 000

6 000

1976-77 1980-81 1984-85 1988-89 1992-93 1996-97 2000-01 2004-05 2008-09 2012-13

Electricity generation Transport ManufacturingMining Residential Commercial, servicesOther

PJ

Source: BREE 2014, Australian Energy Statistics, Table E.

Table 3.3: Australia’s energy consumption, by industry, 2012–13

2012-13 average annual growthPJ share (%) 2012-13 (%) 10 years (%)

Agriculture 99 1.7 1.1 0.2Mining 486 8.3 8.7 5.7Manufacturing 1 275 21.7 1.5 1.0Construction 25 0.4 -1.6 -1.1Electricity generation 1 626 27.6 -5.9 -0.2Transport 1 545 26.3 0.2 1.8Commercial and services 308 5.2 3.2 1.6Residential 454 7.7 0.3 1.0Other a 66 1.1 -2.4 -2.5Total 5 884 100 -0.5 1.1

a Includes consumption of lubricants and greases, bitumen and solvents, and energy consumption in the gas production and distribution industries.

Source: BREE 2014, Australian Energy Statistics, Table E.


Table 3.4: Australia’s energy balance, 2012–13

Coal, coal by-

productsNatural

gas

Crude oil,

ORF LPGRefined

productsLiquid/gas

biofuelsPJ PJ PJ PJ PJ PJ

Supply

Primary indigenous 11 437.6 2 439.2 786.9 95.3 26.5

plus all imports 1.2 244.4 1 159.7 24.8 879.6

less all exports 9 485.4 1 302.6 583.2 64.4 125.0

less stock changes and discrepancies 6.7 - 6.1 - 79.7 - 0.3 32.8

Total primary energy supply a 1 946.7 1 387.1 1 443.1 56.0 721.8 26.5

less conversions

Coke ovens 12.0 0.1

Petroleum refining 15.9 1 440.4 - 23.6 - 1 430.6

Gas manufacturing 0.1 0.0

Electricity generation 1 739.3 517.5 0.2 0.0 37.3 11.7

Other conversion b 57.3 20.6 - 8.3 9.3

Fuel use in conversion 33.9 0.2 102.2

Consumption

Total final energy consumption c 138.1 799.1 2.5 87.7 2 003.4 14.8

Agriculture 0.9 1.9 88.5

Mining 3.3 174.5 1.8 1.7 212.2 1.7

Food, beverages, textiles 11.4 40.2 0.6 1.9 2.6 0.6

Wood, paper and printing 4.4 18.9 0.7 0.4 0.7

Chemical 9.3 126.0 13.9 59.5 0.3

Iron and steel 23.6 16.5 0.0 0.7

Non-ferrous metals 54.8 146.2 0.1 83.4 0.1

Other industry 24.0 64.1 6.4 6.8 2.8

Construction 2.9 0.2 21.3

Road transport 3.1 41.6 1 094.8 8.5

Rail transport 0.0 0.0 0.0 42.9

Air transportd 271.1

Water transportd 6.3 37.1

Commercial and servicese 0.9 51.0 3.6 27.5

Residential 0.0 154.8 15.8 1.0

Lubes, bitumen, solvents 53.3

Totals may not add due to rounding.a Total primary energy supply is a measure of the total energy supplied within the economy. It is equal to indigenous production plus imports

minus exports, plus stock changes and statistical discrepancies.b Includes return streams to refineries from the petrochemical industry, consumption of coke in blast furnaces, blast furnace gas

manufacture, briquette manufacturing and lignite tar in char manufacture.


3

Table 3.4: Australia’s energy balance, 2012–13 (continued)

Biomass Wind Solar HydroTotal

electricityUranium

oxide TotalPJ PJ PJ PJ PJ PJ PJ

Supply

Primary indigenous 184.4 26.4 26.6 65.8 4 229.5 19 318.1

plus all imports 2 309.7

less all exports 3 943.8 15 504.3

less stock changes and discrepancies 285.7 239.1

Total primary energy supply a 184.4 26.4 26.6 65.8 5 884.4

less conversions

Coke ovens 0.1 12.2

Petroleum refining 6.5 8.7

Gas manufacturing 0.2

Electricity generation 11.4 26.4 13.7 65.8 - 896.7 1 526.6

Other conversion b 0.2 79.1

Fuel use in conversion 99.1 235.4

Consumption

Total final energy consumptionc 173.0 12.8 790.7 4 022.1

Agriculture 8.0 99.3

Mining 0.0 90.8 486.1

Food, beverages, textiles 89.5 23.2 170.2

Wood, paper and printing 26.8 17.4 69.4

Chemical 0.5 16.5 226.0

Iron and steel 11.1 52.0

Non-ferrous metals 1.6 133.3 419.5

Other industry 1.5 29.1 134.6

Construction 0.3 24.7

Road transport 1 148.0

Rail transport 8.5 51.5

Air transport d 271.1

Water transport d 43.5

Commercial and services e 0.3 0.4 234.9 318.6

Residential 52.8 12.5 217.5 454.4

Lubes, bitumen, solvents 53.3

c Total final energy consumption is the total energy consumed in the final or ‘end-use’ sectors. It is equal to total primary energy supply less energy consumed or lost in conversion, transmission and distribution.

d Includes air and water transport bunker fuels.e Includes ANZSIC 281 water and sewage and ANZSIC 50-53 other transport, services and storage.Source: BREE 2014, Australian Energy Statistics, Table A.


Figure 3.6: Australia’s energy snapshot, 2012–13

Energy consumption ►1035 PJEnergy consumption per person ► 411 GJEnergy consumption per $million GSP ► 4091 GJ

Western Australia

Electricity Supply


South Australia


Northern Territory

Energy consumption ► 5884 PJEnergy consumption per person ► 254 GJEnergy consumption per $million GDP ► 3857 GJ

28%Transport

26%Manufacturing

22%

Australia at a glance


Queensland28% 25% 25%


New South Wales and Australian Capital Territory32% 26% 21%


Victoria35% 25% 16%


Tasmania34% 27% 13%

31% 20% 17%

27% 23% 22%

27% 23% 23%

Mining

8%Residential

8%Other

8%

Source: BREE 2014, Australian Energy Statistics.


3

Energy efficiencyAustralia is becoming more energy efficient as a result of new technologies, policies and regulations, and changes in consumer behaviour. Over the last two decades there has been a significant coordinated effort between Australian and state and territory governments to ensure that energy efficiency opportunities are recognised and realised. In 2009, Australian governments entered into a national partnership agreement and developed a National Strategy on Energy Efficiency to accelerate energy efficiency efforts.

Energy efficiency improvements are occurring in large industrial energy users, in buildings, transport, and in household energy use. In particular, improved efficiency of appliances such as refrigeration, air conditioning and electronics, and more stringent energy efficiency requirements in the Building Code, are influencing Australia’s energy use trends, along with consumer responses to higher prices.

For example, air conditioners today are around one-third more efficient than a decade ago, supported by the introduction of Minimum Energy Performance Standards (MEPS) from 2001. The least efficient air conditioner (of 4 kilowatts or less) today is more efficient than the most efficient air conditioner on the market in 2002.


Figure 3.7: Efficiency of new air conditioners (<4kw split systems)

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

5.5

6.0

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Registered energy efficiency ra tio Average energy efficiency ratio

MEPS level Oct 2001

MEPS level Apr 2006

MEPS level Apr 2010MEPS level Oct 2011

Energy Efficiency Ratio

Source: Department of Industry, 2014.

Modern homes can consume 29 per cent less electricity than homes built ten years ago due to both more efficient appliances and changes to the Building Code, which ensures that all new residential and commercial buildings meet minimum energy efficiency ratings. Figure 3.8 shows an example of the cumulative effects of these energy efficiency improvements on electricity use in Melbourne homes on a hot day (with a maximum temperature of 35 degrees Celsius) and on a mild day (with a maximum temperature of 23 degrees Celsius). Both total electricity use and peak demand are lower in houses constructed more recently. Minimum performance standards for a range of common household appliances and efficiency requirements in the Australian Building Code are estimated to have saved consumers over $10 billion (net present value) in avoided energy costs between 2000 and 2013.


3

Figure 3.8: Electricity use in Melbourne homes on a hot day (max temp 35°C) and a mild day (max temp 23°C)

200

400

600

800

1000

12:00 AM 3:00 AM 6:00 AM 9:00 AM 12:00 PM 3:00 PM 6:00 PM 9:00 PM kW/h

Pre-2007 - hot day 2007-2010 - hot day Post-2010 - hot day

Pre-2007 - mild day 2007-2010 - mild day Post-2010 - mild day

Year of Construction

Source: Department of Industry 2013, internal analysis from published data provided by SP Ausnet.

Energy expenditureIn 2012, Australian households spent an average of $99 a week on energy. This included $39 a week on energy sources used within the dwelling such as electricity or gas, and $60 a week for fuel for vehicles. Australian households’ average expenditure on energy represented 5.3 per cent of total gross weekly household income. Low income households spent on average almost 10 per cent of their gross household weekly income on total household energy costs, around three times that of high income households. Spending also varied across states and territories, with total household energy costs higher in the Northern Territory ($110 a week) and the Australian Capital Territory ($109 a week) than in most other states and territories.


Figure 3.9: Household energy expenditure by state, 2012

20

40

60

80

100

120

NSW VIC QLD SA WA TAS NT ACT Australia

Total dwelling energy Total fuel for vehicles Total energy expenditure

A$/ week

Source: ABS 2013, 4670.0 Household Energy Consumption Survey, Australia.

Figure 3.10: Energy expenditure as a proportion of gross weekly income, 2012

2

4

6

8

10

Low income Middle income High income

%

Total dwelling energy Total fuel for vehicles Total energy expenditure

Source: ABS 2013, 4670.0 Household Energy Consumption Survey, Australia.

4

249 TWhElectricity generation in 2012–13

56 000 MWInstalled generation capacityin 2012–13

64%Coal share of electricity generation in 2012–13

38%Rise in retail electricity prices from 2010–11 to 2013–14

4. Electricity


The Australian electricity marketElectricity is transported from power stations via electricity transmission networks to electricity distributors and large end users. Electricity distribution networks carry electricity to customers, including households, businesses and industrial users. Electricity retailers buy electricity in wholesale markets, package it with costs associated with provision of network services, and sell it to customers.

The Australian electricity market comprises three distinct electricity systems: the National Electricity Market (NEM), the Western Australian market, and the Northern Territory market. Due to the high costs associated with transporting electricity over long distances, Western Australia and the Northern Territory are not connected to the NEM.

National Electricity Market (NEM)In the eastern states, the NEM forms a single electrically connected system extending from Port Douglas in Queensland, through New South Wales, the Australian Capital Territory, Victoria and Tasmania to Port Lincoln in South Australia. The NEM is connected by six major transmission interconnectors. Electricity network infrastructure in the NEM comprises around 44 000 kilometres of transmission lines and 760 000 kilometres of distribution lines.

The Australian Energy Market Operator (AEMO) is responsible for the operation of the NEM. The NEM comprises the physical infrastructure of the electricity network, and the operation of a wholesale market for the supply of electricity to end-users. Exchanges between electricity generators and consumers are facilitated through a gross energy pool. Output from generators is aggregated and scheduled to meet demand.


4

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.


Western AustraliaWestern Australia’s networks consist of the South-West Interconnected System (SWIS) which includes Perth, and the North-West Interconnected System (NWIS) for the mining areas in the north. While not connected electrically, the SWIS and NWIS are connected through gas pipelines. The SWIS network comprises 7 500 kilometres of transmission lines, and around 91 000 kilometres of distribution lines. The SWIS accounts for approximately three-quarters of generation in Western Australia. The NWIS network consists of around 8 000 kilometres of transmission and distribution lines with a service area that covers 2.3 million square kilometres, including the Kimberley, Pilbara, Gascoyne, Mid West and Esperance, Hopetoun and Norseman in the Southern Goldfields.

The Wholesale Electricity Market (WEM) in the SWIS comprises an energy market and the Reserve Capacity Mechanism (RCM). There are two types of market participants: market generators are owners or controllers of generation systems; market customers are sellers of electricity to retail customers, large individual consumers or demand side management (DSM) aggregators.

Northern TerritoryThe Northern Territory’s electricity industry is small and consists of three regulated systems: the Alice Springs regulated system; the Darwin–Katherine regulated system; and the Tennant Creek regulated system. There are also many small off-grid systems that primarily support indigenous communities and mining operations.

Electricity productionElectricity generation in Australia has been declining over the past few years, in response to falling electricity demand. In 2012–13, Australia’s total electricity generation was 249 terawatt hours, a decrease of 1.7 per cent from 2010–11.


4

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Coal-fired power stations provide the majority of Australian electricity generation, as coal is a relatively low cost and abundant energy source in Australia. Black and brown coal accounted for 64 per cent of total electricity generation in 2012–13. However, coal use in electricity generation has been declining over the past decade, with its share falling from 77 per cent in 2001–02. In 2012–13, coal-fired generation declined by 7 per cent.

Gas is Australia’s second largest source of electricity, accounting for 20 per cent of generation in 2012–13. Gas-fired generation increased by 5 per cent in 2012–13, supported by new capacity coming on line in Victoria. Renewable energy sources, mainly hydroelectricity, wind and bioenergy, accounted for 13 per cent of electricity generation in 2012–13, supported by a significant boost to hydro generation.

Figure 4.3: Australia’s electricity generation, by fuel type

50

100

150

200

250

2002-03 2004-05 2006-07 2008-09 2010-11 2012-13 TWh

Black coal Brown coal Natural gas

Other a Renewables

a Includes oil and multi fuel fired power plants.Source: BREE 2014, Australian Energy Statistics, Table O.


4

Table 4.1: Australia’s electricity generation, by fuel type, 2012–13

2012-13 Average annual growth

TWh Share (%) 2012-13 (%) 10 years (%)

Black coal 111.5 44.8 -4.4 -0.9

Brown coal 47.6 19.1 -13.6 -1.7

Natural gas 51.1 20.5 5.1 5.7

Oil 4.5 1.8 65.2 13.9

Other a 1.9 0.8 78.8 0.8

Hydro 18.3 7.3 29.7 1.3

Wind 7.3 2.9 19.9 29.7

Solar PV 3.8 1.5 49.4 56.5

Biogas 1.6 0.6 -1.3 8.9

Bagasse, wood 1.6 0.6 8.9 4.3

Geothermal 0.0 0.0 0.0 -

Total 249.1 100 -0.3 0.9

a includes multi-fuel fired power plants that cannot be classified.Source: BREE 2014, Australian Energy Statistics, Table O.

The major electricity supply companies in Australia include Macquarie Generation, AGL Energy Limited, and Delta Electricity. These companies each generated around 9 per cent of total electricity generation in 2012–13.


Table 4.2: Top 10 electricity generation companies in Australia, 2012–13

Total electricity generated

Share of total

GWh %Macquarie Generation 23 171 9.3AGL Energy Limited 21 732 8.7Delta Electricity 21 364 8.6Stanwell Corporation Limited 20 183 8.1C S Energy Limited 14 316 5.7Hydro-Electric Corporation 12 478 5.0EnergyAustralia Holdings Ltd 11 728 4.7OzGen Holdings Australia Pty Ltd 11 663 4.7National Power Australia Investments Limited 11 483 4.6Origin Energy Electricity Limited 11 469 4.6Total Australian generation 249 075 -

Sources: BREE 2014, Australian Energy Statistics, Table O; Clean Energy Regulator.

Capacity The electricity generation fleet in Australia comprises approximately 300 principal generating units with an installed capacity rating of around 56 000 MW in 2012–13. Many mines and remote communities also have their own off-grid generation facilities. The location and composition of installed capacity differs markedly across jurisdictions. The majority of Australia’s electricity generation capacity is steam power plants fuelled by coal or gas.

Most black coal-fired generation capacity is located in New South Wales and Queensland, with Queensland also having the largest installed gas-fired generation capacity. Victoria relies more heavily on brown coal-fired generation compared with other regions. Gas-fired generation capacity is more prevalent for installed capacity in South Australia, Western Australia and the Northern Territory. Hydroelectricity forms the majority of installed capacity in Tasmania.


4

Table 4.3: Australia’s principal installed electricity generation capacity, 2012–13

Qld a NSW b vic SA Tas WA c NT Aus

MW MW MW MW MW MW MW MW

Black coal 8 284 11 284 0 0 0 1 745 0 21 313

Brown coal 0 0 6 807 786 0 0 0 7 593

Gas 3 332 1 979 2 399 2 726 506 2 932 508 14 381

Oil 454 46 0 187 0 1 307 127 2 121

Renewables d 1 115 2 799 2 820 835 2 630 469 3 10 671

Total installed capacity 13 185 16 108 12 026 4 534 3 136 6 453 638 56 079

a Includes generating capacity at Mt Isa.b Includes the Australian Capital Territory.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.

d Includes principal installed capacity for public use only.Source: ESAA 2014, Electricity Gas Australia.

Decisions to add generation capacity and the choice of fuel for new capacity depend on a number of factors: fuel input prices, prospective growth in electricity demand, wholesale prices, the need to replace or refurbish ageing plants, and the long-run marginal cost of different generation technologies. In 2012–13, wind energy accounted for most of the investment in new capacity in Australia, contributing an additional 643 megawatts of capacity. Investment in coal-fired generation plants contributed 240 megawatts to Australia’s installed capacity in 2012–13.


Map

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4

Electricity consumption Electricity consumption in Australia varies between states and territories because of differences in population size, climatic conditions, seasonal variation and composition of the customer base. Electricity consumption in Australia has declined since 2010–11, in contrast to the long-run upward growth trend. This has been driven by increased energy efficiency practices, mild weather across much of Australia, a reduction in industrial load, and consumer responses to higher retail electricity prices. Declining electricity demand has been particularly pronounced in manufacturing, the largest user of electricity, with its consumption declining by 3 per cent a year on average between 2010–11 and 2012–13.

In 2012–13, the states and territories in the NEM accounted for 85 per cent of Australian electricity consumption. Total electricity consumption in the states and territories in the NEM region declined by 3 per cent between 2010–11 and 2012–13. This contrasts with Western Australia and the Northern Territory, where demand from the mining sector has led to increased electricity consumption over the same period.

Table 4.4: Australia’s electricity consumption, by sector, 2012-13

2012-13 Average annual growth TWh Share (%) 2012-13 (%) 10 years (%)

Manufacturing 65.9 26.5 -3.1 0.0Commercial and services 60.7 24.4 4.4 1.6Residential 60.4 24.3 -1.5 0.9Electricity supply 27.5 11.0 -7.5 -1.6Mining 25.3 10.1 7.8 5.7Other a 9.3 3.7 0.6 0.7Total 249.1 100.0 -0.3 0.9

a includes agriculture, construction, transport, gas supply, and water supply, sewerage services sectors.

Source: BREE 2014, Australian Energy Statistics, Table F.


Figure 4.4: Electricity Consumption Insight

AUSTRALIA’S ELECTRICITY CONSUMPTION, BY REGION 1992-93 TO 2012-13 TWh

Northern Territory

Western Australia

States and territories in the NEM

1992-93 2002-03 2012-13

2

146 212

33

32

2016

199

AUSTRALIA’S ELECTRICITY CONSUMPTION, BY SECTOR, 2012-13 Share of Total %

Manufacturing Commercial and Services Residential Electricity Supply

Mining Other

26 24 24 11 10 4



4

Figure 4.5: Australian electricity consumption, by region

50

100

150

200

250

1991-92 1994-95 1997-98 2000-01 2003-04 2006-07 2009-10 2012-13 TWh

States & territories in the NEM a Western Australia Northern Territory

Notes: a includes New South Wales, Victoria, Queensland, South Australia, Tasmania and the Australian Capital Territory.


Table 4.5: Australian electricity consumption, by region

2012-13 Average annual growth

TWh Share (%) 2012-13 (%) 10 years (%)

National Electricity Market (NEM) region a 212.5 85.3 -1.3 0.3

Western Australia 33.3 13.4 5.8 5.4

Northern Territory 3.3 1.3 5.3 3.6

Total 249.1 100.0 -0.3 0.9

a Total consumption in New South Wales, Victoria, Queensland, South Australia, Tasmania and the Australian Capital Territory.



Electricity prices There are notable differences in the market-based wholesale energy purchase costs across states and territories in Australia. In the NEM, wholesale electricity price differences partly reflect actual differences in spot prices faced by retailers in each state, as network capacity constraints limit the amount of electricity transmitted across state borders.

Wholesale energy purchase costs rose sharply between 2006 and 2009, as the drought reduced supply from hydro generators and coal generation plants (due to lack of water for cooling). More recently, the decline in wholesale electricity prices has been largely associated with an unexpected plateauing and subsequent fall in demand that has resulted in excess generation capacity.

Figure 4.6: Spread of monthly spot price across states in the NEM region compared to the average NEM spot price

50

100

150

200

250

300

350

400

450

1999-00 2001-02 2003-04 2005-06 2007-08 2009-10 2011-12 2013-14

$/MWh 2012-13

Spread of monthly average spot prices across states in the NEM region Average NEM spot price

Source: BREE; Global Roam; ABS 6427.0 Producer Price Indexes, Australia.


4

Figure 4.7: Residential electricity price index

50

100

150

200

250

300

350

1989-‐90 1993-‐94 1997-‐98 2001-‐02 2005-‐06 2009-‐10 2013-‐14

1989-‐90

=100

CPI Electricity price index

Source: ABS 2014, 6401.0 Consumer Price Index, Australia.

Figure 4.8: Business electricity price index

50

100

150

200

250

1999-00 2001-02 2003-04 2005-06 2007-08 2009-10 2011-12 2013-14

1999-00 =100

PPI Electricity price index

Source: ABS 2014, 6427.0 Producer Price Indexes, Australia.


Retail electricity prices in Australia have been increasing at a rate greater than inflation. Household electricity prices have nearly doubled over the period 2007–08 to 2013–14, compared with a 17 per cent increase in the consumer price index. Business electricity prices have increased by 82 per cent from 2007–08 to 2013–14, compared with a 13 per cent increase in the producer price index.

Recent increases in network costs associated with investment in transmission and distribution infrastructure have contributed to the recent rise in retail electricity prices. A key reason for the increase in network capital expenditure has been the need to replace ageing assets, and to reliably meet increasing occurrences of peak electricity demand.

In the NEM, retail electricity prices are either regulated or determined in a competitive market. Regulated pricing structures in the NEM were designed to allow for recovery of estimated supply costs and have been used to determine investment in new generation capacity. Market contracts represent an alternative pricing structure for residential electricity customers and are largely driven by retail competition.

In Queensland and the Australian Capital Territory, the prices electricity retailers can charge households and small businesses are limited by price controls imposed by state regulators. Prices have been deregulated in Victoria since 2009. In South Australia, retail price controls were removed in February 2013, and New South Wales removed retail price regulation from 1 July 2014. While electricity prices in Tasmania have been open to full competition since 1 July 2014, Aurora remains the sole retailer.

The main costs that determine retail electricity prices comprise wholesale, transport and retail costs. Changes in these costs affect the billing price that consumers pay for electricity.


4

Figure 4.9: Transmission and distribution capital investment in the NEM

Transmission

200

400

600

800

1000

1200

1400

1600

1800

2003–04 2004–05 2005–06 2006–07 2007–08 2008-09 2009-10 2010-11 2011-12 2012-13

2012-13$ million

Qld NSW Vic Tas SA

Distribution

1000

2000

3000

4000

5000

6000

7000

2005–06 2006–07 2007–08 2008-09 2009-10 2010-11 2011-12 2012-13

2012-13 $ million

NSW QLD Vic SA Tas ACT

Note: Investment data reflects the AER’s conclusion of new capex- as incurred, net of disposals, and adjusted for actual CPI and WAC, and forecast capital expenditure over the current regulatory period converted to 2012-13 dollars.

Source: BREE; Regulatory determination by the ACCC and AER; ABS, 6401.0 Consumer Price Index.


Figure 4.10: Representative average customer bill and supply chain components, 2013

5

10

15

20

25

30

c/kWh

Environmentalpolicies

Wholesale andretail

Transmission

Distribution

Queensland

5

10

15

20

25

30

c/kWh


Wholesale andretail

Transmission

Distribution

New South Wales

5

10

15

20

25

30

c/kWh


Retail

Wholesale

Transmission

Distribution

Australian Capital Territory

5

10

15

20

25

30

c/kWh


Wholesale andretail

Transmission

Distribution

victoria

5

10

15

20

25

30

c/kWh


Wholesale andretail

Transmission

Distribution

South Australia

5

10

15

20

25

30

c/kWh

Prior year passthrough


Retail

Wholesale

Regulatednetworks

Tasmania

5

10

15

20

25

30

c/kWh


Retail

Wholesale

Transmission

Distribution

Western Australia

5

10

15

20

25

30

c/kWh


Retail

Wholesale

Transmission

Distribution

Australia

-5

5

10

15

20

25

30

c/kWh


Retail

Wholesale

Networkservices

Northern Territory a

a In the Northern Territory, a subsidy is applied to the retail component of the typical electricity bill and is illustrated as a negative number.

Source: AEMC, 2013 Residential Electricity Price Trends.

5

15%Households with solar PV in 2013–14

10%Households with solar hot water in 2012–13

13%Renewables share of electricity generation in 2012–13

56%Bioenergy share of renewable energy production in 2012–13

5. Renewable Energy


OverviewIn Australia, renewable energy sources are currently used for generating electricity, both on and off-grid, for residential heating and cooling, for transport fuels, and in the manufacturing sector to produce heat. Hydro and wind energy are used on a commercial scale for electricity generation. Solar energy use is growing for electricity generation, both on and off grid, and for heating and cooling. Bioenergy is used for small scale electricity generation, directly for heating and cooling in residential and industrial settings, as well as for transport fuels.

Australia has an abundance of renewable energy sources, and there is significant potential for future development in large scale solar energy, geothermal energy and marine energy. Many of these renewable technologies are currently at the proof of concept stage, or in the early stages of commercialisation. Upfront costs continue to be relatively high for many renewable energy technologies. Additionally, some renewable energy sources are far from transmission and distribution infrastructure and markets, making development costly and difficult.

Production and consumptionIn 2012–13 renewable energy accounted for about 2 per cent of Australia’s energy production and 6 per cent of consumption (approximately 330 petajoules). In general, the overall share of renewables in the energy mix in Australia has been reasonably constant over the past decade.

The main sources of renewable energy in 2012–13 were wood and wood products (27 per cent), bagasse (29 per cent), and hydroelectricity (20 per cent). The remainder of renewable energy production comes from wind, solar, and other forms of bioenergy, which contribute about 8 per cent each. Geothermal and marine energy technologies are not at a commercial stage, however pilot projects are being tested.


5

Total renewable energy production increased by 6 per cent a year over the five years to 2012–13. The largest increases over the past five years have occurred in solar electricity and wind electricity production (123 per cent and 18 per cent growth a year respectively). Hydroelectricity increased by 11 per cent a year over the past five years. The growth in hydroelectricity reflects variable flow associated with periods of rain and drought, rather than increased capacity.

Figure 5.1: Australia’s renewable energy production

50

100

150

200

250

300

350

2006–07 2007–08 2008–09 2009–10 2010–11 2011-12 2012-13

Bagasse Wood and woodwaste Biogas and b iofuels

Hydro Solar hot water Solar e lectricity

Wind

PJ

Source: BREE 2014, Australian Energy Statistics, Tables F and O.


Table 5.1: Australia’s renewable energy production a

2011-12 2012-13 Share (%)average annual

growth

PJ PJ 2012-132012-13

(%)5 years

(%)

Bagasse 84.9 95.3 28.9 12.3 4.0

Biogas 14.9 14.1 4.3 -5.0 2.3

Biofuels 12.9 12.4 3.8 -3.8 14.7

Wood and woodwaste 88.7 89.1 27.0 0.5 -1.5

Hydro 50.7 65.8 20.0 29.7 11.4

Solar hot water 12.3 12.8 3.9 3.9 11.7

Solar electricity 9.2 13.7 4.2 49.2 122.5

Wind 22.0 26.4 8.0 19.9 17.7Total 295.6 329.6 100.0 11.5 6.0

a Includes both electricity and heat.Source: BREE 2014, Australian Energy Statistics, Tables F and O.

The manufacturing sector accounted for 38 per cent of total renewable energy consumption in 2012–13. This is mainly in the food, beverages and textiles and the wood, paper and printing subsectors, which use wood and bagasse in manufacturing processes to produce heat. The residential sector accounted for 20 per cent of renewable energy use in Australia in 2012–13, mostly firewood, for heating and cooking, and solar energy for hot water. Rooftop solar PV is not included in the residential sector, and is captured in the electricity generation sector. Ethanol and biodiesel for road transport accounted for 3 per cent of renewable energy use in Australia in 2012–13.


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Figure 5.2: Renewable energy consumption, by sector, 2012-13

0 20 40 60 80 100 120 140

Commercial and services

Mining

Transport

Residential

Manufacturing

Electricity generation

PJ

Source: BREE 2014, Australian Energy Statistics, Table A.

Electricity generationAround 39 per cent of renewable energy use in Australia is in the electricity generation sector, generating electricity from hydro, bioenergy, wind, solar PV and geothermal sources. These fuel types accounted for 13 per cent of total electricity generation in 2012–13, up from 10 per cent in 2010–11. This recent growth reflects rapid expansion in wind generation and the recovery in hydro generation after a sustained period of drought.

Hydro generation continues to account for the largest share of total renewable electricity generation, accounting for 56 per cent in 2012–13, and 7 per cent of Australia’s total electricity generation. Wind power and solar PV followed, accounting for 23 per cent and 12 per cent of total renewable electricity generation respectively.


Figure 5.3: Australia’s electricity generation from renewable energy

5 000

10 000

15 000

20 000

25 000

30 000

35 000

2002-03 2004-05 2006-07 2008-09 2010-11 2012-13GWh

Hydro Bagasse, wood Biogas Wind Solar PV Geothermal

Source: BREE 2014, Australian Energy Statistics, Table O.

The location of renewable energy production facilities in Australia is directly related to the climatic and geographical characteristics of different regions. Hydroelectricity capacity in Australia is primarily located in south eastern Australia, while wind farms are generally located in the windy southern and western regions. Bagasse-powered electricity facilities are located predominately in the sugarcane growing regions of Queensland, while biogas (landfill and sewerage) facilities are more uniformly distributed. There is one small-scale geothermal electricity facility in Queensland.


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Table 5.2: Capacity of renewable electricity generation in Australia, MW, 2012-13a

Fuel typeNSW &

ACT viC QLD SA WA TAS NT Total

Hydro 2 488.0 2 313.4 172.6 3.7 30.1 2 289.5 0.0 7 297.2

Bagasse 75.5 0.0 395.3 0.0 6.0 0.0 0.0 476.8

Biomass 4.4 0.2 38.0 0.0 1.0 0.0 0.0 43.6

Black liquor 20.0 54.5 2.0 0.0 0.0 0.0 0.0 76.5

Geothermal 0.0 0.0 0.1 0.0 0.0 0.0 0.0 0.1

Landfill gas 66.1 46.8 22.1 13.1 25.2 4.9 1.1 179.3

Sewage gas 7.9 21.5 4.5 5.5 1.8 0.1 0.0 41.2

Large-scale solar 4.8 3.2 0.8 1.7 11.2 0.1 1.6 23.4

Solar PV 675.4 586.0 1 150.1 464.6 363.3 56.1 10.3 3 305.7

Wave 0.5 0.2 0.0 0.0 0.1 0.0 0.0 0.8

Wind 282.2 934.1 12.5 1 203.0 478.2 310.5 0.1 3 220.6

Total 3 624.8 3 959.9 1 798.0 1 691.6 916.9 2 661.2 13.1 14 665.2

a Includes capacity shown in Table 4.3, plus capacity of private generators.Source: ESAA, Electricity Gas Australia 2014; Clean Energy Regulator; Geoscience

Australia.

Tasmania continues to generate the largest amount of renewable energy in Australia. Renewable energy has accounted for around 87 per cent of Tasmanian power generation on average for the past five years. New South Wales is the second largest producer of renewable electricity, although this constituted only 12 per cent of its total electricity generation in 2012–13. In South Australia, renewable fuels (predominately wind energy) accounted for 29 per cent of its total generation in 2012–13.


Map

5.1

: R

enew

able

ene

rgy

gene

rato

rs in

Aus

tralia

Sour

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Geo

scie

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Aust

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.


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Figure 5.4: Renewables Insight

RENEWABLE ELECTRICITY IN AUSTRALIA, 2012-13Renewables share of total generation (%) and renewable generation (GWh)

WESTERN AUSTRALIA1448 GWh

NORTHERNTERRITORY23 GWh

SOUTH AUSTRALIA3947 GWh

QUEENSLAND3259 GWh

NEW SOUTH WALES8179 GWh

VICTORIA4380 GWh

TASMANIA11330 GWh

100%0% 50%

Renewable Penetration Level (%)

0.7%

4% 5%

86%

29%12%

8%

Source: BREE 2014, Australian Energy Statistics, Table O.


Solar energySolar has been the most rapidly expanding renewable energy source in Australia over the last five years. Solar energy use grew by 49 per cent in 2012–13, however this was from a low base and solar remains a relatively small contributor to Australia’s energy mix. Solar energy refers to using energy from the sun for heating, or converting this energy into electricity. There are two main types of solar energy: solar thermal and solar photovoltaic (PV).

Solar PV technology uses solar PV cells to convert sunlight into electricity. It is currently mostly utilised in small-scale rooftop systems, both on and off-grid. These systems can be installed on residential dwellings or public buildings, to generate electricity. The electricity may be used on site, or fed back into the grid.

Solar thermal technologies convert sunlight into heat or thermal energy. This heat can be used to drive steam turbines to generate electricity, but in Australia are more typically used directly for space heating (primarily solar hot water systems). Large-scale electricity generation from solar thermal systems is still limited to pilot-scale demonstration projects in Australia, with the exception of one solar thermal power plant in Liddell, New South Wales.

The recent rapid expansion in solar energy reflects price reductions for purchasing the technologies, making them more accessible to the average household, rising energy bills causing households to seek alternative measures, and the introduction of state feed-in-tariffs and rebate schemes, which provided financial incentives and increased awareness about energy use. Currently, about 10 per cent of Australian households have installed small-scale solar hot water heaters, while about 15 per cent of Australian households have installed rooftop solar PV.

In 2012–13, 3.8 terawatt hours (13.7 petajoules) of electricity was generated from solar PV technologies. This represents 1.5 per cent of Australia’s total electricity generation. Queensland generated the largest share of Australia’s solar PV generation, at 34 per cent, followed by New South Wales (22 per cent), Victoria (15 per cent) and South Australia (14 per cent).


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Figure 5.5: Solar energy production, by technology

5

10

15

20

25

30

2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

PJ

Solar hot water Solar PV

Source: BREE 2014, Australian Energy Statistics, Tables F and O.

Figure 5.6: Small-scale solar PV installations, as of 30 June 2014

50 000

100 000

150 000

200 000

250 000

300 000

350 000

400 000

ACT NSW QLD SA Tas Vic WA NT

No. ofinstallations

Source: Clean Energy Regulator.


Wind energyAfter solar energy, wind energy has been the second fastest growing renewable energy source in Australia over the past five years, averaging 18 per cent a year. Wind is currently the second biggest contributor to renewable electricity generation in Australia, after hydroelectricity, generating 7.3 terawatt hours in 2012–13, 3 per cent of Australia’s total electricity generation. Use of wind began increasing rapidly from the mid-2000s due to lowering costs of the technology, and government policies to support renewable electricity generation.

South Australia generates the largest share of wind electricity in Australia, accounting for 45 per cent of Australia’s total wind generation. The penetration of wind in South Australia is relatively high by global standards, with wind accounting for approximately 25 per cent of South Australia’s total electricity generation. Victoria and New South Wales are the second biggest generators of wind electricity, producing 27 per cent and 11 per cent of Australia’s total respectively; however this constitutes only 4 per cent of Victoria’s total electricity generation, and 1 per cent of total generation in New South Wales.

Figure 5.7: Wind share of total electricity generation, 2012-13

5

10

15

20

25

30

35

SouthAustralia

Victoria Tasmania Australia Denmark Portugal Spain Ireland

% of totalgeneration

Notes: International data are 2013 estimates.Sources: BREE 2014, Australian Energy Statistics, Table O; IEA 2014, World energy

balances.

6

426 MtBlack coal production in 2013–14

$40 billionCoal exports in 2013–14

2nd Largest coal exporter in 2013

54%Share of world metallurgical coal exports in 2013

6. Coal


ProductionAustralia is the world’s fourth largest coal producer. Australian black coal production rose by 3.4 per cent in 2013–14, from 412 million tonnes in 2012–13 to 426 million tonnes in 2013–14. Of this, around 88 per cent was exported.

In 2013–14, 98 per cent of Australia’s black coal production came from Queensland and New South Wales. The Bowen, Galilee and Surat Basins are Queensland’s major coal production basins, while the Sydney and Gunnedah Basins are the main production basins in New South Wales. Black coal production has increased by 4 per cent a year over the past decade, mainly to support growth in export markets.

Brown coal production totalled around 63 million tonnes in 2012–13, mainly from the Gippsland basin in Victoria. Brown coal is all consumed domestically, primarily as a fuel for electricity generation, with many mines co-located with power generation facilities. Brown coal production has fallen by 1 per cent a year over the past decade, in line with declining brown coal fired generation.

Open-cut coal mining accounts for 78 per cent of coal production in Australia. This reflects lower mining costs, and the recovery of a higher proportion of the coal deposit than underground mining. In 2013, Australia had around 50 black coal producers, operating around 120 coal mines. The top ten producers account for around three-quarters of the Australian coal market.


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Map

6.1

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pera

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min

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nd p

orts

Sour

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ienc

e Au

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lia


Figure 6.1: Coal Insight



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Figure 6.2: Australia’s top six producers of black coal, 2013

0 0 0 0 0 0 0 0 0

Glencore

BHP Billiton Limited

Mitsubishi Corporation

Rio Tinto Group

Peabody Energy Corporation

Anglo American plc

% 2 4 6 8 10 12 14 16

Source: BREE; AME Group 2014.

Consumption Australian coal consumption was around 1947 petajoules (around 111 million tonnes) in 2012–13. Coal consumption fell by 6 per cent in 2012–13, underpinned by a decline in coal fired electricity generation and demand from the iron and steel sector. This continues a longer term decline in the use of coal in Australia, with coal consumption declining by 1 per cent a year on average over the past decade. The vast majority of Australian coal consumption is as a fuel for electricity generation. Black coal is also used to manufacture coke, for use in blast furnaces in the iron and steel sector.


Table 6.1: Australia’s coal consumption, 2012-13

ConsumptionBlack

coalBrown

coalMet.

cokeCoal by

products Total

PJ PJ PJ PJ

Electricity generation 1 094.3 639.6 5.4 1 739.3

Coke ovens 105.6 -77.7 -15.9 12.0

Other conversion a 13.9 6.2 53.8 -16.7 57.3

Mining 3.1 0.2 3.3

Food, beverages, textiles 9.4 2.0 11.4

Wood, paper and printing 4.4 4.4

Chemical 6.7 0.9 1.8 9.3

Iron and steel 0.5 1.7 21.4 23.6

Non-ferrous metals 51.7 3.1 54.8

Other industry 23.4 0.3 0.3 24.0

Transport 6.3 6.3

Commercial and services b 0.1 0.8 0.9

Total 1 319.4 645.8 -17.7 -0.9 1 946.7

a Includes return streams to refineries from the petrochemical industry, consumption of coke in blast furnaces, blast furnace gas manufacture, briquette manufacturing and lignite tar in char manufacture.

b Includes ANZSIC 281 water and sewage and ANZSIC 50-53 other transport, services and storage.



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TradeIn 2013–14 Australia exported 375 million tonnes of black coal, a 10 per cent increase from 2012–13. Coal is Australia’s second largest export earner behind iron ore, valued at around $40 billion in 2013–14. Metallurgical coal comprised $23 billion of the total, with the remaining $17 billion from thermal coal.

In 2013, Australia accounted for 54 per cent of world metallurgical coal trade, and 27 per cent of total coal trade. Japan is Australia’s largest export destination, accounting for 35 per cent of Australia’s coal exports in 2013. China is Australia’s fastest growing export destination, with its share rising from 1 per cent in 2008 to 22 per cent in 2013. Australia’s high share of the world metallurgical coal market reflects Australia’s large resource endowment of high quality coal and proximity to Asian steel mills.

There are eight port facilities in Queensland and New South Wales, with a combined export capacity of around 443 million tonnes.

Figure 6.3: Australia’s black coal exports, volume and value

10

20

30

40

50

60

70

80

50

100

150

200

250

300

350

400

1989-‐90 1992-‐93 1995-‐96 1998-‐99 2001-‐02 2004-‐05 2007-‐08 2010-‐11 2013-‐14

2013-‐14 A$b Mt

Exports (Mt) Value ($b)



Figure 6.4: Australia’s coal exports, by destination

20

40

60

80

100

120

Japan China South Korea India Chinese Taipei Mt

2009 2010 2011 2012 2013


Figure 6.5: World metallurgical coal exports

30

60

90

120

150

180

Australia United States Canada Russian Federation Other Mt

2011 2012 2013

Source: IEA 2014, Coal information.


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Figure 6.6: World thermal coal exports

50

100

150

200

250

300

350

400

450

Indonesia Australia RussianFederat ion

SouthAfrica

Colombia China OtherMt

2011 2012 2013


Figure 6.7: Queensland and New South Wales exports by port, 2013–14

20

40

60

80

100

120

140

Newcastle (NSW)

Gladstone (QLD)

Dalrymple Bay (QLD)

NCIG (NSW)

Hay Point (QLD)

Abbot Point (QLD)

Port Kembla (NSW)

Brisbane (QLD)

Mt

Exports Port capacity

Note: No export data for NCIG. Source: BREE.


PricesThe majority of Australian coal export contracts are based on the Japanese fiscal year, starting 1 April. Coking coal contracts are now negotiated on a quarterly basis, a shift from the annual contracts of previous years. Thermal coal contracts have in recent years also been standardised with a common coal trading platform, increasing the liquidity of seaborne coal supply.

High quality hard coking coal prices for JFY 2014 averaged US$116 a tonne, a 25 per cent fall from the previous year. Semi-soft coking coal averaged US$105 a tonne, an increase of 4 per cent. Average thermal coal prices fell by 14 per cent in 2014 to US$82 a tonne. The decline in average coal prices in the past three years is mainly attributed to abundant supply of seaborne coal.

Figure 6.8: Australian benchmark coal prices for Japanese fiscal year

50

100

150

200

250

300

350

2002 2004 2006 2008 2010 2012 2014

US$/t

Hard coking Semi-‐so9 coking Thermal

Sources: BREE 2014, Resources and Energy Quarterly; 2013 Resources and Energy Statistics Annual.


6

Low emissions coalBurning fossil fuels such as coal releases carbon dioxide (CO2) into the atmosphere. There are a range of low emissions coal technologies being explored in Australia and overseas, including gasification, efficiency increases and technologies to capture and store carbon.

Carbon capture and storage (CCS) is the process of capturing CO2 from stationary emissions sources such as power stations, with the potential to reduce CO2 emissions by more than 80 per cent at existing power stations. CCS is an established technology but the challenge is to deploy integrated large scale projects at a cost that is commercially competitive.

Initiatives supporting the development of carbon capture and storage (CCS) in Australia include pre-competitive storage exploration, pre- and post-combustion carbon capture and oxyfuel combustion demonstration projects, research to support development projects, research into CO2 pipeline standards and future pipeline corridors. Other initiatives include brown coal value-adding, and international research and development collaboration.

CCS projects under development in Australia include the Victorian CarbonNet Project, Western Australia’s South West Hub project, and Queensland’s Callide Oxyfuel project.

The CarbonNet Project is investigating the potential to develop a large scale carbon capture and storage network. The project is being designed to bring together multiple CO2 capture projects in Victoria’s Latrobe Valley, transporting CO2 via a shared pipeline and injecting into offshore storage sites in the Gippsland basin.

Western Australia’s South West Hub project, if fully developed, will serve the needs of the high emissions plants and industries of the Kwinana-Collie region. Current activities are focussing on the exploration and proof of viability of potential reservoirs in the Lesueur formations. This involves the acquisition and


interpretation of 3D seismic and the preparation for exploration wells. Parallel work is being carried out on pipeline studies and infrastructure needs.

The Callide Oxyfuel project is demonstrating oxyfuel capture technology retrofitted to an existing coal fired power plant. A 30 megawatt unit of the Callide A Power Station has been retrofitted with oxyfuel technology to produce a stream of high purity CO2 which is ready for geological storage. Commissioning of the retrofitted power station began in March 2012 and the first liquid CO2 was produced in December 2012. The plant is now fully operational and will run for an extended test period until early to mid-2015.

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$16.4 billionLNG exports in 2013–14

3rdLargest LNG exporter in 2013

20%Gas share of electricity generation in 2012–13

12%Coal seam gas share of production in 2013–14

7. Gas


OverviewGas—conventional and unconventional—plays an important role in the Australian economy. Gas accounts for nearly one-quarter of primary energy consumption, one-fifth of electricity generation, and is one of Australia’s most valuable commodity exports. More than half of national gas production is exported, and Australia is currently the world’s third largest exporter of LNG.

The Australian gas market consists of three distinct regional markets:

• the Eastern market, comprising Queensland, New South Wales, the Australian Capital Territory, Victoria, Tasmania and South Australia

• the Western market, comprising Western Australia, and• the Northern market, comprising the Northern Territory.

The three markets are currently physically and economically separate from each other. They each have different characteristics, including size and location of gas resources, demand profile, and relative exposure to international markets. The vast distance between the markets makes potential interconnection costly.

ProductionAustralia produced 2439 petajoules (around 62 billion cubic metres) of natural gas in 2012–13. Gas production rose by 14 per cent in 2012–13, supported by the start-up of the Pluto LNG project in Western Australia. In contrast, gas production was relatively flat in 2013–14, at around 2447 petajoules. Over the past decade, Australia’s gas production has expanded by 5 per cent a year on average.


7

Map 7.1: Australia’s gas basins and infrastructure

Note: Proposed pipeline routes are indicative only.Source: Geoscience Australia.


Nearly two-thirds of Australia’s gas production occurs in Western Australia, which produced 1605 petajoules in 2013–14. Much of this production is destined for LNG exports. Almost all gas production in Western Australia is in the Carnarvon Basin, with a small volume produced in the Perth Basin.

The eastern market produced 816 petajoules of natural gas in 2013–14. Victoria is the largest supplier of gas to the eastern market, producing 415 petajoules in 2013–14, mainly from the Gippsland and Otway basins. Queensland is the other main source of gas in the eastern market, producing a further 330 petajoules in 2013–14. Most Queensland gas is sourced from coal seams in the Bowen and Surat basins.

Coal seam gas accounted for 36 per cent of eastern market gas production in 2013–14, and 12 per cent of national gas production, up from a national share of 3 per cent a decade ago. Coal seam gas production reached 292 petajoules in 2013–14, almost all of which is sourced from Queensland. A small volume is also produced in New South Wales in the Sydney Basin. Production of CSG is expected to continue to grow to support LNG exports from the east coast from 2014–15.

The northern market is the smallest market in Australia, producing around 26 petajoules of gas in 2013–14. It does not include production in the Joint Petroleum Development Area, which is captured as a gas import into Australia and re-exported as LNG from Darwin. Nearly all the gas production in the northern market is from the Bonaparte Basin, with a small volume also produced in the Amadeus Basin.

The two largest companies, Woodside and BHP Billiton, accounted for around one-third of Australian gas production in 2013–14. The next four largest companies—Shell, BP, Chevron and Santos—each accounted for around 7 per cent of production in that year.


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Table 7.1: Australia’s gas production, by market

2012-13 2013-14

PJ mcm PJ mcm

Eastern market 854 22 408 816 21 989

Conventional 573 14 886 524 13 839

Queensland 36 963 39 1 052

Victoria 451 11 760 415 10 924

South Australia 86 2 163 70 1 863

Coal seam gas 282 7 522 292 7 789

Queensland 276 7 363 290 7 754

New South Wales 6 159 1 35

Northern market 26 661 26 662

Western market 1 558 38 958 1 605 40 118

Total 2 439 62 026 2 447 62 769

Source: BREE 2014, Australian Energy Statistics, Tables Q, R; Resources and Energy Quarterly.

Around 48 per cent of Australia’s gas was produced for the domestic market in 2013–14, with the remainder exported as LNG. The share of production for the domestic market has fallen from 71 per cent only a decade ago, with exports increasing at a faster rate than domestic consumption.


Figure 7.1: Gas Insight

GAS PRODUCTION, BY MARKET bcm

GAS PRODUCTION, BY GAS TYPE

2003-04 2005-06 2007-08 2009-10 2011-12 2013-14bcm

10

20

30

40

50

60

70

Coal Seam Gas Conventional

Northern

Western

Eastern

1973-74 1993-94 2013-14

3.6 22.0

40.1

0.7

13.60.8

12.7

0.40

40 years

63

Source: BREE 2014, Australian Energy Statistics; Resources and Energy Quarterly.


7

Figure 7.2: Australia’s gas production, by market

10

20

30

40

50

60

70

1973-74 1978-79 1983-84 1988-89 1993-94 1998-99 2003-04 2008-09 2013-14 bcm

Northern Western Eastern

Source: BREE 2014, Australian Energy Statistics, Table Q; Resources and Energy Quarterly.

Figure 7.3: Share of Australian gas production, by company, 2013–14

0 5 10 15 20

Apache

Orig in Energy

ExxonMobil

MIMI

Santos

BP

Chevron

Shell

BHP Billiton

Woodside

%

Source: EnergyQuest 2014, Energy Quarterly.


Figure 7.4: Australia’s gas balance

10

20

30

40

50

60

70

1973-74 1978-79 1983-84 1988-89 1993-94 1998-99 2003-04 2008-09 2013-14

bcm

Exports Consumption a Production + imports

a Includes statistical discrepancies. Imports are from Joint Petroleum Development Area.Source: BREE 2014, Australian Energy Statistics, Tables M, N, Q.

Domestic consumptionAustralian gas consumption has grown by 3 per cent a year on average over the past decade. The growth in gas consumption reflects greater uptake of gas in electricity generation, and use in mining and industry. Natural gas consumption in Australia was 1387 petajoules in 2012–13, equal to 24 per cent of total energy consumption. This share of the energy mix varies between states and territories, with half of Western Australia’s energy sourced from natural gas in 2012–13 and 46 per cent in the Northern Territory. In the eastern market, natural gas accounted for 17 per cent of energy consumption in 2012–13.


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Table 7.2: Gas consumption, by state, 2012–13

Consumption Gas share of energy mix

PJ %

Eastern market 826 17

New South Wales 162 10

Victoria 287 20

Queensland 235 18

South Australia 127 38

Tasmania 16 14

Northern market 45 46

Western market 516 50

Australian total 1 387 24

Source: BREE 2014, Australian energy statistics, Table C.

The eastern market is the largest domestic market, accounting for 60 per cent of Australia’s gas consumption in 2012–13. Victoria and Queensland are the two largest gas using states in the eastern market. The Western market accounted for a further 37 per cent of total consumption and Western Australia is by far the largest gas using state in Australia.

The electricity generation sector is the largest user of gas in Australia, accounting for 37 per cent of gas consumption in 2012–13. The manufacturing sector is the second largest user of gas, particularly in the metal products and the chemical (fertiliser and plastics) industries, accounting for a further 32 per cent of consumption in that year. Use in mining (including oil and gas extraction and LNG production) (13 per cent), and direct use in the residential (11 per cent) and commercial and services (4 per cent) sectors account for most of the remaining gas used in Australia. These shares vary considerably between the three markets.


Figure 7.5: Australia’s gas consumption, by market

5

10

15

20

25

30

35

40

1972-73 1977-78 1982-83 1987-88 1992-93 1997-98 2002-03 2007-08 2012-13

bcm

Northern Western Eastern

Source: BREE 2014, Australian Energy Statistics, Table Q.

Table 7.3: Gas consumption, by sector and market, 2012–13

Eastern Western Northern AustraliaPJ PJ PJ PJ

Electricity generation 274 218 25 517Manufacturing 277 174 451 - Metals c c 167 - Chemical c c 126 - Other c c 158Mining 59 96 19 175Residential 145 10 155Commercial and services 45 3 48Other 26 14 40Total 826 516 45 1 387

c State level sub sector split is confidential, but included in total manufacturing.Source: BREE 2014 Australian Energy Statistics, Table F.


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LNG exportsAustralian gas is exported as LNG – gas cooled to -161°C, at which point it becomes a liquid. Australia began exporting LNG in 1989 from the North West Shelf, in the Carnarvon Basin off the north west coast of Western Australia. LNG exports from Darwin commenced in 2006 (sourcing gas from the Joint Petroleum Development Area), and the Pluto LNG project in the Carnarvon Basin commenced exports in 2012. As of mid-2014, Australia’s annual LNG export capacity is 24.3 million tonnes.

Australian LNG exports were 24.1 million tonnes in 2013–14, a marginal increase from 23.9 million tonnes in 2012–13. LNG export volumes have increased by nearly 10 per cent a year on average over the past decade, supported by new export capacity and growth in demand for Australian LNG. LNG exports were valued at more than $16 billion in 2013–14.

Australia was the world’s third largest LNG exporter in 2013, behind Qatar and Malaysia, and accounted for 10 per cent of world LNG trade. Almost all of Australia’s LNG exports are to the Asia Pacific region. More than 80 per cent of Australia’s LNG exports in 2013 were to Japan, and Australia accounted for around one-fifth of Japan’s LNG imports. Other major LNG trading partners include China and South Korea.


Figure 7.6: Australia’s gas market flows, petajoules, 2012–13

Natural gas

Imports244

Production2439

LNG exports-1303

518451175155

Residential Mining Manufacturing Electricity generation

-6Stock change and statistical discrepancies

1387

89

Other

DOMESTIC CONSUMPTION



7

Figure 7.7: Australia’s LNG exports, volume and value

0

4

8

12

16

20

0

5

10

15

20

25

2003-04 2005-06 2007-08 2009-10 2011-12 2013-14

2013-14$AbMt

Volume Value ( rhs)


As of mid-2014, there were 62 million tonnes of LNG capacity under construction in Australia. Once built, this is expected to make Australia the world’s largest exporter of LNG by the end of the decade. This expansion in capacity will include new conventional gas projects in western and northern Australia, a floating LNG project, and coal seam gas based LNG projects on the east coast.


Map 7.2: Australia’s LNG exports by market, 2013

Source: IEA 2014, Natural gas information.


7

Table 7.4: Australia’s LNG export capacity, existing and under construction

Project Capacity Mtpa Start up

Eastern market

Queensland Curtis LNG (QCLNG) 8.5 late 2014

Australia Pacific LNG (APLNG) 9 2015

Gladstone LNG (GLNG) 7.8 2015

Western market

North West Shelf (NWS) 16.3 1989

Pluto 4.3 2012

Gorgon 15.6 2015

Wheatstone 8.9 2016

Prelude Floating LNG 3.6 2017

Northern market

Darwin LNG 3.7 2006

Ichthys 8.4 2017

Source: BREE.

PricesDomestic gas producers sell gas to major industrial, mining and power generation customers, and to energy retailers that on sell it to business and residential customers. Until recently, Australian gas prices have generally been low by international standards, typically $3−4 per gigajoule. Most historical gas prices have been under confidential long term contracts, with limited exposure to international prices.

There has been a recent shift towards shorter term contracts and spot markets. Victoria established a wholesale spot market in 1999


for gas sales, to manage system imbalances and pipeline network constraints. A short term trading market for gas was launched in Sydney and Adelaide in 2010, and in Brisbane in 2011. The market provides a means for participants to manage contractual imbalances, and is supported by a National Gas Market Bulletin Board. The Wallumbilla gas hub in Queensland was launched in early 2014. The exchange aims to alleviate unnecessary bottlenecks in the Queensland gas market by facilitating short term gas trades.

Average daily spot prices for gas rose in 2012–13, mainly due to high winter prices in 2012 and a short term rise in demand associated with the introduction of carbon pricing. Overall, average prices for 2012–13 rose by 69 per cent in Brisbane, 51 per cent in Sydney, 33 per cent in Melbourne and 34 per cent in Adelaide. Spot prices eased in 2013–14, with relatively subdued winter demand. Brisbane prices diverged markedly from prices in other markets. The recent fall in prices is mainly a result of increased CSG production associated with ramp-up for LNG projects meeting flat domestic consumption, particularly from the electricity generation sector.


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Figure 7.8: Quarterly domestic gas spot prices

0

1

2

3

4

5

6

7

8

Jun-‐08 Jun-‐09 Jun-‐10 Jun-‐11 Jun-‐12 Jun-‐13 Jun-‐14 $/GJ

Sydney STTM Brisbane STTM

Victoria wholesale

Adelaide STTM

Source: AEMO.

Energy bills for retail customers include costs of wholesale gas, transport through transmission and distribution networks, and retail services. Over the past ten years, the retail price of gas for households has increased by 8 per cent a year, significantly faster than the rate of inflation.


Figure 7.9: Retail household gas price index

50

100

150

200

250

300

350

1989-90 1993-94 1997-98 2001-02 2005-06 2009-10 2013-14

1989–90 = 100

Gas CPI Source: ABS 2014, 6401.0 Consumer price index, Australia.

Australian LNG is predominantly sold under long term contracts. LNG contract prices are generally linked to world oil prices, with higher oil prices leading to higher LNG prices. A small but increasing proportion of LNG is also sold under short term contracts and spot market trades, with spot prices fluctuating according to the tightness of the market. Average Australian LNG export prices (total export value divided by volume) rose by 18 per cent in 2013–14, to around $678 a tonne ($12.60 a gigajoule). The average landed price for LNG into Japan from all sources was around US$16.60 a gigajoule in 2013.

8

$12.4 billionCrude oil and LPG exports in 2013–14

76%Crude oil and condensate production exported in 2013–14

44%Imports share of refined product consumption in 2013–14

US$100/bblWTI average oil price in 2013–14

8. Petroleum production and refining


OverviewAustralia produces a range of liquid fuels – crude oil, condensate and LPG. In 2013–14, around three quarters of this production was exported, with the majority being sourced from the north-west coast of Australia. Australian oil production has been declining over the last decade and Australia is a net importer of crude oil and condensate. Just over 80 per cent of the feedstock for Australia’s five domestic refineries, which are largely based on the east coast, is sourced from imports. Imports also account for a significant share of Australia’s consumption of refined products. In 2013–14 imports of refined products equalled 44 per cent of domestic consumption.

Upstream productionIn 2013–14, Australia’s production of crude oil and condensate declined by 8 per cent to 19.5 gigalitres (721 petajoules). The decline was primarily due to scheduled outages at production facilities off the north-west coast of Australia and falling production from maturing fields. In contrast, LPG production from naturally occurring sources increased in 2013–14, by 8 per cent to 3.8 gigalitres (103 petajoules). The net fall in output continues a longer term decline in Australia’s production of primary petroleum.

Australia’s largest petroleum producing basins are the Carnarvon Basin in the north-west of Australia, the Cooper-Eromanga Basin, which straddles the border between South Australia and Queensland, and the Gippsland Basin in Bass Strait. Production from the Carnarvon Basin is mostly exported, while production from the Gippsland and Cooper-Eromanga basins is used to support domestic refining. The Carnarvon basin accounted for 61 per cent of Australia’s crude oil production in 2013–14.


8

By volume, the four largest petroleum producers in Australia are BHP Billiton, Woodside, Exxon Mobil and Santos. In 2013–14, output from these four producers accounted for around half of all petroleum produced in Australia.

Figure 8.1: Australia’s oil flows, petajoules, 2012–13

Source: BREE 2014, Australian Energy Statistics, Table A.


Figure 8.2: Australia’s production of primary petroleum

100

200

300

400

500

600

700

800

1997-98 1999-00 2001-02 2003-04 2005-06 2007-08 2009-10 2011-12 2013-14kbd

Crude oil Condensate LPG


Figure 8.3: Australia’s primary petroleum production, 2013-14, top four companies

1000

2000

3000

4000

5000

6000

BHP Billiton Woodside ExxonMobil SantosML

Crude oil LPG Condensate

Source: Energy Quest.


8

Figure 8.4: Australia’s crude oil production, by basin, 2013–14

1609MLGIPPSLAND

7433MLCARNARVON

2135MLCOOPER-EROMANGA

18%

61% 13%1024MLOTHER BASINS

8%

No. 1

No. 3

No. 2

Note: Gippsland total includes output from the Bass basin. Basin locations are indicative only.

Source: BREE.

Table 8.1: Australia’s production of primary petroleum

2012-13 2013-14Average annual growth 10 years

ML ML %Crude oil 13 696 12 203 - 4.3

Condensate 7 572 7 281 0.1

Liquefied petroleum gas 3 553 3 827 - 2.1

Source: BREE 2014, Australian Petroleum Statistics.


Downstream productionThe refining industry in Australia produces a wide range of petroleum products, including gasoline, diesel oil, aviation turbine fuel, fuel oil, and LPG. In 2013–14, Australian refineries produced 34.2 gigalitres of marketable refined petroleum products. This included 14.5 gigalitres of automotive gasoline and 12.4 gigalitres of diesel oil, which together accounted for 79 per cent of total production of refined products.

Table 8.2: Australia’s production of marketable refined petroleum products

2010-11 2011-12 2012-13 2013-14ML ML ML ML

Automotive gasoline 16 643 15 573 15 603 14 478Diesel oil b 12 859 12 658 12 876 12 423Aviation turbine fuel 5 448 5 453 5 534 5 009Fuel oil 952 960 899 655Liquefied petroleum gas a 1 467 1 213 1 215 1 094Bitumen 579 456 243 150Aviation gasoline 91 90 92 89Heating oil 16 12 9 5Other 369 360 420 284Total products 38 424 36 775 36 891 34 187

a includes petrochemical transfers to industry; b includes automotive diesel oil and industrial & marine diesel fuel.

Source: BREE 2014, Australian Petroleum Statistics.


8

Map 8.1: Australia’s refineries and import terminals, October 2014

Source: Adapted from the Australian Institute of Petroleum.

There are five petroleum refineries currently operating in Australia, which are managed by four companies: BP, Caltex, Mobil and Vitol. These refineries have a combined capacity of 32.6 gigalitres a year. The largest facility is BP’s Kwinana refinery in Western Australia, followed by Vitol’s Geelong refinery in Victoria.


Table 8.3: Australia’s refinery capacity, as of October 2014

Location Operator Year commissioned Capacity (ML/yr)Queensland

Bulwer Island BP 1965 5 910Lytton Caltex 1965 6 300

VictoriaAltona Mobil 1949 4 640Geelong Vitol 1954 7 470

Western AustraliaKwinana BP 1955 8 300

Total 32 620Source: Australian Institute of Petroleum.

Substantial increases to refining capacity in the Asian region have placed pressure on Australian refineries over recent years. In 2012, Shell ceased refining operations at the Clyde refinery in Sydney. Caltex ceased refining operations at the Kurnell refinery in Sydney in October 2014, converting it to an import terminal. The decline in capacity will continue in 2015 when BP ceases refining operations at the Bulwer Island facility.


8

Table 8.4: Australia’s consumption of petroleum products

2010-11 2011-12 2012-13 2013-14ML ML ML ML

LPGa 4 251 3 816 3 862 3 666Automotive gasoline 18 725 18 762 18 659 18 122Aviation gasoline 79 84 81 73Aviation turbine fuel 7 068 7 336 7 773 8 168Kerosene 27 13 26 11Heating oil 5 4 6 7ADOb 20 061 21 643 22 618 23 082Fuel oil 757 942 717 811Lubes & greases 430 348 342 335Bitumen 719 730 735 575Other 288 284 264 149Total products 52 410 53 962 55 083 54 999

a. Includes petrochemical transfers to Industry.b. Includes automotive diesel oil and industrial and marine diesel fuel. Source: BREE, Australian Petroleum Statistics.

Australian consumption of refined petroleum products increased 2.1 per cent to 55.1 gigalitres in 2012–13, largely as a result of consumption growth in the mining, air transport, ferrous metals and non-ferrous metals sectors. Consumption of refined products remained relatively flat in 2013–14, at 55.0 gigalitres.


TradeAustralia is a net importer of crude oil and other refinery feedstock (ORF) but a net exporter of LPG. In 2013–14, Australia imported 28 gigalitres of crude oil and ORF. The high proportion of imports as a share of total production reflects the fact that most of Australia’s oil production occurs off the north-west coast of Western Australia, which is closer to Asian refineries than domestic refineries on the east coast, and is therefore more profitable to export. With declining east coast production, domestic refineries on the east coast now mostly rely on imported feedstock. In addition to costs, crude grades produced in Australia are generally not as well suited for use by Australian refineries as those from other countries.

Australia’s dependence on imports of crude oil and ORF has increased significantly over the last 30 years, in line with increases in consumption and declining east coast production. In 1986–87, imports of crude oil and ORF equalled 24 per cent of domestic consumption; by 2012–13, this proportion had increased to 80 per cent. Malaysia is the largest source for Australian crude oil and ORF imports, accounting for 23 per cent of total imports in 2013–14.

Despite increasing reliance on imports, Australia exports significant quantities of crude oil and ORF. In 2013–14, exports of crude oil and other refinery feedstock totalled 14.8 gigalitres, down 6 per cent from 15.8 gigalitres in 2012–13. The decline reflects lower output from mature fields located off the north-west coast of Australia, which supply the majority of Australia’s exports.


8

Table 8.5: Australia’s imports of petroleum, by source

2010-11 2011-12 2012-13 2013-14

ML ML ML ML

Crude oil and other refinery feedstock

Congo 1 041 718 1 463 1 713

Gabon 1 407 1 351 1 482 1 530

Malaysia 5 930 4 943 5 442 6 570

New Zealand 2 565 2 195 1 943 1 717

Nigeria 2 050 3 764 3 181 2 630

United Arab Emirates 4 683 4 599 4 352 3 647

Vietnam 2 554 1 788 2 358 2 474

Other 11 544 10 147 9 761 8 000

Total 31 774 29 505 29 982 28 281

Liquefied petroleum gas 888 1 023 920 730

Refined products

Indonesia 261 299 407 689

Japan 1 891 2 796 2 745 4 035

Korea, Republic Of (South) 2 063 2 586 4117 5 018

Singapore 9 464 11 058 11 939 10 488

Other 2 855 3 669 3 696 3 884

Total 16 534 20 408 22 904 24 114

Notes: Excludes imports from international waters.Source: BREE 2014, Australian Petroleum Statistics.


Figure 8.5: Australia’s imports of crude oil and ORF as a share of domestic refinery consumption

10%

20%

30%

40%

50%

60%

70%

80%

90%

1977-78

1982-83

1987-88

1992-93

1997-98

2002-03

2007-08

2012-13

Share of consumption

80%


Figure 8.6: Australia’s crude oil and ORF balance

-1 000

- 500

500

1 000

1 500

2 000

2 500

1977-78 1982-83 1987-88 1992-93 1997-98 2002-03 2007-08 2012-13

PJ

Production Imports Exports Consumption a

a. includes statistical discrepancies.Source: BREE 2014, Australian Energy Statistics.


8

Australia’s largest export markets for crude oil and ORF are Singapore, Thailand and Korea. In 2013–14, these three countries accounted for 39 per cent of Australia’s total exports of crude oil and ORF. Japan is Australia’s largest market for LPG, accounting for 59 per cent of total exports in 2013–14.

Australia exports a substantially smaller volume of refined petroleum products. In 2013–14, exports of refined products totalled 0.6 gigalitres, down 29 per cent from 2012–13 in line with reduced refining capacity. Almost half of Australia’s exports of refined products are shipped to Singapore, which is a regional hub for petroleum products.

Figure 8.7: Australia’s refined products balance

-500

500

1000

1500

2000

2500

1977-78 1982-83 1987-88 1992-93 1997-98 2002-03 2007-08 2012-13

PJ

Production Imports Exports Consumption a

a. Includes statistical discrepancies.Source: BREE 2014, Australian Energy Statistics.


Table 8.6: Australia’s exports of petroleum, by destination

2010-11 2011-12 2012-13 2013-14

ML ML ML ML


Korea, Republic of (South) 3 794 1 807 2 391 901

Singapore 2 649 3 221 3 521 2 776

Thailand 2 983 1 413 1 256 2 140

Other 10 179 10 983 8 593 9 000

Total 19 605 17 424 15 761 14 817

Liquefied petroleum gas

Japan 1 509 1 371 1 499 1 454

Korea, Republic of (South) 190 242 494 588

Singapore 244 329 164 248

Other 528 173 229 169

Total 2 471 2 115 2 386 2 459

Refined products

Malaysia 15 132 122 228

New Zealand 393 190 95 31

Singapore 407 715 613 281

Other 104 189 76 104

Total 919 1 226 906 644

Notes: Excludes exports to international waters.Sources: BREE 2014, Australian Petroleum Statistics.


8

Australia’s earnings from crude oil and ORF increased in 2013–14, up 6 per cent to $11.1 billion due to the change in the exchange rate, which caused the price of oil to increase in terms of Australian dollars. In contrast, earnings from exports of refined petroleum products declined in 2013–14, from $692 million to $551 million, in line with lower export volumes.

Table 8.7: Value of Australia’s trade in petroleum

2010-11 2011-12 2012-13 2013-14

$m $m $m $m

Exports

Crude oil and other refinery feedstock 11 772 11 962 10 447 11 118

Liquefied petroleum gas 1 068 971 1 088 1 265

Refined products

Automotive gasoline 120 127 76 111

Aviation gasoline 22 26 23 24

Aviation turbine fuel 8 2 10 2

Diesel fuel 94 115 75 63

Fuel oil 99 314 114 25

Lubricants 154 257 328 292

Other 29 49 66 34

Total 526 890 692 551

Export total a 13 366 13 823 12 227 12 934

Bunkers b 1 508 1 589 1 607 1 653


2010-11 2011-12 2012-13 2013-14

$m $m $m $m

imports

Crude oil and other refinery feedstock 20 183 21 125 20 396 21 869

Liquified petroleum gas 376 452 413 337

Refined products

Automotive gasoline 1 838 2 915 2 874 3 004

Aviation turbine fuel 1 440 1 742 2 443 2 918

Diesel fuel 6 237 8 830 9 633 11 596

Fuel oil 836 1 061 1 029 898

Lubricants 671 826 741 825

Other 423 1 346 1 228 1 276

Total 11 445 16 720 17 948 20 517

import total 32 004 38 297 38 757 42 723

a does not include bunker.b ships and aircraft stores.Sources: BREE 2014, Resources and Energy Quarterly.

Non-conventional liquid fuelsThe main alternatives to petrol and diesel used for motor vehicles in Australia are LPG and biofuels (ethanol and biodiesel). There are currently three major fuel ethanol production facilities in Australia, with a combined capacity of 440 million litres a year. These facilities produce ethanol primarily from waste starch, grain sorghum and molasses. Around two-thirds of Australia’s ethanol production capacity is located in New South Wales, at a single production facility in Nowra.

Table 8.7: Value of Australia’s trade in petroleum (continued)


8

Table 8.8: Liquid biofuels production facilities in Australia

Location Capacity (ML/yr) Feedstocks

Fuel ethanol

Manildra Ethanol Plant, NSW 300 Waste starch

Dalby Biorefinery, Qld 80 Sorghum

Sarina Distilleries Qld 60 Molasses

Biodiesel

In production

Australian Renewable Fuels Barnawatha, Wodonga, Vic 60 Tallow, used cooking

oil

Australian Renewable Fuels Largs Bay, Adelaide, SA 45 Tallow, used cooking

oil

Australian Renewable Fuels Picton Plant, Picton, WA 45 Tallow, used cooking

oil

Biodiesel Industries Australia Biodiesel Plant, Rutherford, NSW

20 Used cooking oil, vegetable oil

EcoTech BioDiesel, Narangba, QLD 30 Tallow, Used cooking

oil

Macquarie Oil, Cressy, TAS 15 Poppy Seed Oil & Waste Vegetable Oil

Ecofuels Australia, Echuca, VIC 2 Canola oil

Not in production

Territory Biofuels, Darwin, NT 140 Palm Oil, Tallow, Used Cooking Oil

Smorgon Fuels - BioMax Plant, Laverton, Vic 15-100 Tallow, Canola Oil

and Juncea Oil

Source: Biofuels Association of Australia 2014.


There are six major biodiesel production facilities in Australia, with a number of smaller facilities producing marginal quantities. Total biodiesel operating capacity is around 217 million litres a year. The majority of Australia’s biodiesel production capacity currently is in Victoria. Biodiesel facilities in Australia use a range of tallow (waste animal fat), used cooking oil and vegetable oils as feedstock, which are selected according to price and availability.

PricesOil prices have increased strongly over the last 15 years. In 1999, the price of West-Texas Intermediate (WTI) averaged US$27 a barrel in 2013 dollar terms. By 2003, the price had increased to US$39 a barrel as a result of reduced output from Venezuela and Iraq, and growing demand in the United States and Asia. Continued political instability in a number of oil producing countries, increasing demand in Asia (particularly China) and speculation drove the price to US$144 a barrel in July 2008. However, by December 2008 the price had fallen to US$45 a barrel due to the drop in demand caused by the global financial crisis.

Between 2009 and 2010, the price of WTI increased in line with consumption growth associated with economic recovery, as well as continued growing oil demand from emerging economies. The price continued to rise into 2011 to an average of US$112 a barrel in April. By July 2012 the price had fallen to US$82 a barrel in line with increased uncertainty over the European debt crisis. Prices increased into late 2013 as disruptions in a number of oil producing economies reduced supply. In the period since, strong growth in supply from unconventional sources, particularly in the US, has placed downward pressure on prices. In 2013, the price of WTI averaged US$98 a barrel.


8

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Australian wholesale gasoline and diesel prices closely follow movements in Singapore gasoline prices, which are in turn largely set by world oil prices. In 2013–14, around 43 per cent of Australia’s imports of refined petroleum products came from Singapore. In 2009, the Singapore gasoline spot price declined 29 per cent to average A$0.61 a litre in line with falling demand caused by the global economic slowdown. Since 2010, it has recovered, and in 2013 the spot price for Singapore gasoline averaged A$0.77 a litre.

Figure 8.9: Petrol price indicators

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 20132013A$/L

World trade weighted average oil price Singapore gasoline spot price

Source: BREE, IEA.

9

38%Transport share of final energy consumption in 2012–13

74%Road transport share of transport energy use in 2012–13

17.6 millionMotor vehicles registered as of Jan 2014

39%Diesel share of road transport energy use in 2012–13

9. Transport


Energy useEnergy consumption in the transport sector has been growing over the past four decades, largely reflecting economic and population growth during the period. Government policies, energy prices, travel behaviour and technological advancements are also important drivers of transport energy use. Road transport, as the dominant transport mode for goods and passengers in Australia, has remained the largest energy user over the last four decades, consistently accounting for around three quarters of energy consumption in the transport sector. The share of air transport in energy use has increased steadily over the same period, largely reflecting increased activity and popularity.

Figure 9.1: Transport Insight

Sources: BREE 2014, Australian Energy Statistics, Table F.


9

Figure 9.2: Australia’s energy consumption in the transport sector, by transport mode

200

400

600

800

1000

1200

1400

1600

1976-77 1982-83 1988-89 1994-95 2000-01 2006-07 2012-13Other a WaterRail AirRoad

PJ

Notes: a Includes other transport services and storage.Sources: BREE 2014, Australian Energy Statistics, Table F.

Petrol, diesel and aviation fuel dominate energy consumption in the transport sector, accounting for over 90 per cent of energy use in 2012–13. The share of petrol in the transport fuel mix has decreased slowly over recent decades, outstripped by growth in diesel and aviation fuel consumption. This reflects fuel switching and increased demand for diesel, particularly associated with mining activities. Aviation fuel use has also been increasing relatively strongly, reflecting increased air transport activity. Alternative transport fuels accounted for 5 per cent of energy consumption in 2012–13: LPG 2.7 per cent, natural gas 1.6 per cent, and biofuels 0.6 per cent.

The fuel mix in road transport varies between states and territories. Petrol accounted for more than 50 per cent in all states except the Northern Territory, where it accounted for 41 per cent of road


transport fuel consumption in 2012–13. Diesel accounts for more than one-third of road transport fuel use in all states. In Western Australia and the Northern Territory diesel accounts for 46 per cent and 59 per cent respectively, reflecting greater mining and off road activity. LPG has the highest road transport share in Victoria and South Australia, at around 6 per cent. Biofuels use is the highest in New South Wales due to the ethanol blend mandate in that state.

Figure 9.3: Australian energy consumption in the road transport sector, fuel mix by state, 2012-13

0%

20%

40%

60%

80%

100%

Aus NSW Vic Qld WA SA Tas NTGasoline Diesel LPG Biofuels Natural gas


At the end of January 2014, there were 17.6 million motor vehicles (passenger vehicles, campervans, light commercial vehicles, trucks, buses and motorcycles) registered in Australia. The number of vehicles has increased by 2.5 per cent a year over the past five years. The share of vehicles registered with a fuel type of petrol has declined over the same period, from 84 per cent of the


9

total fleet in 2009, to 79 per cent in 2014. In contrast, the share of vehicles registered with a fuel type of diesel has increased to around 19 per cent of the total vehicle fleet.

Figure 9.4: Vehicle registration by fuel type in the road transport sector

0%10%20%30%40%50%60%70%80%90%

Petrol Diesel Other2009 2014

Source: ABS 2014, 9309.0, Motor Vehicle Census, Australia.

Total freight volumes in Australia have quadrupled over the past four decades, predominantly due to significant growth in road freight and, more recently, strong growth in mining-related rail freight volumes in Western Australia, New South Wales and Queensland. Coastal shipping freight volumes have shown limited growth over that period, and more recently have declined, reflecting lower volumes of petroleum and iron ore going to the


domestic market. In 2011–12, the domestic freight task totalled almost 600 billion tonne kilometres, equivalent to about 26 000 tonne kilometres of freight moved for every person in Australia. Rail transport accounts for approximately 49 per cent of total domestic freight (with iron ore and coal exports accounting for over 80 per cent of this), road freight about 35 per cent and coastal sea freight the remaining 16 per cent.

Fuel intensity is the average amount of fuel consumed by a vehicle per 100 kilometres travelled. The Australian average fuel intensity has decreased for cars of all fuel types since 1990, with a strong decline in fuel intensity in the past decade for LPG cars, mainly driven by technological advancements.

Figure 9.5: Fuel intensity for cars, Australia

10

12

14

16

18

1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012Petrol Diesel LPG

L/100 km

Source: BITRE 2012, State and Capital City Vehicle kilometres travelled, Information Sheet 44.


9

Fuel standardsAustralia has progressively imposed increasingly stringent fuel quality standards in an attempt to reduce the adverse effects of motor vehicle emissions on air quality and human health. Current gasoline standards in Australia impose a maximum sulphur content of 50 parts per million (ppm) on premium unleaded petrol. The standard grade of unleaded petrol is subject to a maximum sulphur content of 150 ppm.

A grade of standard unleaded petrol with 10 per cent ethanol (E10) is also offered as an alternative to unleaded petrol in many eastern states. Another grade of standard unleaded petrol with up to 85 per cent ethanol (E85) is also supplied through a small number of metropolitan fuel outlets. The fuel quality standard for diesel in Australia includes a maximum sulphur content of 10 ppm and allows up to 5 per cent biodiesel fuel without a labelling requirement.

Fuel pricesThe price of fuel affects the level of energy consumption and the type of energy consumed. Fuel prices can go up and down due to a combination of factors: changes in international benchmark prices, the value of the Australian dollar relative to the US dollar, levels of competition in different areas, and pricing decisions by wholesalers and retailers. International prices of crude oil largely drive international refined petrol prices, which in turn drive retail petrol prices in Australia. Because international prices are expressed in US dollars, changes in the AUD–USD exchange rate also affect domestic retail prices. Real petrol and diesel prices have fluctuated in recent years. Average prices peaked in 2007–08, declining to 2009–10. Prices were relatively flat in 2013–14.


Figure 9.6: Retail fuel prices in Australia

90 100 110 120 130 140 150 160 170 180

2004-05 2007-08 2010-11 2013-14

Average petrol Average diesel

2013-14 C/L

Source: AIP 2014, Annual Retail Price.

10

2.4%Australia’s share of world energy production in 2012

26%Australia’s share of world coal exports in 2013

1.8%Rise in world energy consumption in 2012

0.5%Decline in Australian energy consumption in 2012-13

10. international Comparison


Energy prices Electricity prices can differ between countries according to the size of electricity networks, the geographic spread of the population, and the availability and proximity of sources of fuel to power plants. On a purchasing power parity basis, Australian household electricity prices are in the mid-range of electricity prices faced by OECD economies. Australian electricity prices have risen strongly in the past few years, mainly driven by significant investment in transmission and distribution infrastructure required to support increasing peak demand for electricity. Electricity price trends in other OECD economies have been mixed over the past two years, with prices relatively stable in the United States and New Zealand, and rising or falling in other countries.

Australian gasoline prices are the fourth lowest in the OECD, after Mexico, the United States and Canada. Similarly, Australian diesel prices are the seventh lowest in the OECD largely due to a lower tax rate.

Energy resourcesAustralia’s coal resources are the fourth largest in the world, accounting for 9 per cent of global resources in 2013, behind the United States, Russia and China. Iran, Russia and Qatar hold the world’s largest gas reserves, with Australia accounting for around 2 per cent of global gas reserves in 2013.

Energy productionAustralia is the world’s eighth largest energy producer, accounting for around 2.4 per cent of world energy production in 2012. Australia is the world’s fourth largest producer of hard coal, as well as the 8th largest producer of coal-fired electricity generation. Australia ranks 15th in terms of global natural gas production.


10

Figure 10.1: OECD household electricity prices, PPP measure a, 2013

10 20 30 40

Canada c Norway

United States Korea

Switzerland Mexico

Israel Finland

Luxembourg France

Sweden New Zealand

Australia b United Kingdom

Japan Belgium

Netherlands Estonia

Chile Austria Greece

Slovenia Ireland

Denmark Czech Republic

Italy Spain c

Hungary Turkey Poland

Portugal Slovak Republic

Germany

US cents / kWh

a The purchasing power parity (PPP) measure is calculated using OECD PPPs for GDP to transform IEA electricity prices (national currency per unit) and AEMC electricity prices for Australia. PPPs are the rates of currency conversion that equalise the purchasing power of different countries by eliminating differences in price levels between countries.

b The AEMC electricity price for Australia is GST inclusive; total prices (including taxes) are reported for other countries.

c 2012 data presented for Canada and 2011 data for Spain, due to IEA price data being unavailable for 2013.

Sources: BREE; AEMC 2013, Residential Electricity Price Trends; IEA 2014, Electricity Prices and Taxes; OECD.Stat.


Figures 10.2: OECD gasoline prices, 2012–13

50 100 150 200 250

Mexico United States

Canada Australia

Chile Japan

Poland Estonia

Luxembourg New Zealand

Austria Czech Republic

Spain Hungary

Switzerland Average Slovenia

Slovak Republic Korea

France Israel

Portugal Germany

Ireland United Kingdom

Finland Belgium

Denmark Greece

Sweden Netherlands

Italy Norway Turkey

Ac / L

Gasoline

Tax component Price less tax

Source: IEA 2014, Energy Prices and Taxes.


10

Figures 10.3: OECD diesel prices, 2012–13

50 100 150 200 250

Mexico United States New Zealand

Chile Canada

Japan Australia

Korea Luxembourg

Poland Estonia

Spain Average

France Austria

Slovenia Czech Republic

Portugal Greece

Slovak Republic Netherlands

Germany Hungary

Denmark Belgium Finland Ireland

Switzerland Israel

Italy United Kingdom

Sweden Norway Turkey

Ac / L

Diesel

Tax component Price less tax Source: IEA 2014, Energy Prices and Taxes.


Figure 10.4: Share of global coal reserves, top 10 countries, 2013

5 10 15 20 25 30

Indonesia

South Africa

Kazakhstan

Ukraine

Germany

India

Australia

China

Russia

United States

%

Note: Includes anthracite, bituminous, sub-bituminous and lignite.Source: BP 2014, Statistical Review of World Energy.

Figure 10.5: Share of global proved natural gas reserves, top 10 countries, 2013

5 10 15 20

Australia

Algeria

Nigeria

Venezuela

United Arab Emirates

Saudi Arabia

United States

Turkmenistan

Qatar

Russia

Iran

%

Source: BP 2014, Statistical Review of World Energy.


10

Figure 10.6: Energy production, top 10 countries, 2012

50000 100000

Nigeria

Iran

Australia

Canada

Indonesia

India

Saudi Arabia

Russia

United States

China

PJ

Source: IEA 2014, World Energy Balances.

Figure 10.7: Hard coal production, top 10 countries, 2013

0 1000 2000 3000 4000

Poland

Colombia

Kazakhstan

South Africa

Indonesia

Russia

Australia

United States

India

China

Mt



Figure 10.8: Coal-fired electricity generation, top 10 countries, 2012

1000 2000 3000 4000

United Kingdom

Russia

Australia

South Africa

South Korea

Germany

Japan

India

United States

China

TWh


Figure 10.9: Gas production, top 15 countries, 2013

0 200 400 600

Australia Uzbekistan

Malaysia Turkmenistan

Indonesia Algeria

Saudi Arabia Netherlands

Norway China

Canada Iran

Qatar Russia

United States

bcm

Source: IEA 2014, Gas information.


10

RenewablesChina was the world’s largest producer of electricity from renewable energy sources in 2012. Australia ranked 28th in the world in terms of renewable electricity generation. Renewable energy accounted for 13 per cent of Australia’s electricity generation in 2012-13, compared with 20 per cent of OECD electricity generation in 2012. For solar generation (solar PV and solar thermal), Australia is the 12th largest producer in the world and 9th on a per person basis. For wind energy generation, Australia ranks 13th in the world.

Energy consumptionAustralia was the world’s nineteenth largest energy consumer and ranked sixteenth on a per person basis in 2012. Australia’s energy intensity ratio (energy consumption per unit of GDP) is on par with the world total, and above the OECD total.

Energy tradeAustralia accounted for 5 per cent of world energy exports on an energy content basis in 2012. Australia is one of only three OECD net energy-exporting nations and a major supplier of energy resources to Asia Pacific region. Australia is the world’s second largest coal exporter after Indonesia, and the third largest LNG exporter after Qatar and Malaysia. Australia ranks 17th in the world in terms of crude oil and NGL imports.


Figure 10.10: Solar electricity generation, top 12 countries, 2012

0 5 10 15 20 25

Australia Greece

India Belgium

Czech Republic France China Japan

United States Spain

Italy Germany

TWh


Figure 10.11: Wind electricity generation, top 13 countries, 2012

0 50 100 150

Australia

Sweden

Por tugal

Denmark

Canada

Italy

France

United Kingdom

India

Spain

Germany

China

United States

TWh



10

Figure 10.12: Electricity consumption per person, top 15 countries, 2012

10000 20000 30000 40000 50000

New Zealand United Arab Emirates

Australia Chinese Taipei

Korea United States

Sweden Luxembourg

Canada Finland

Qatar Kuwait

Bahrain Norway Iceland

kWh per capita


Figure 10.13: Energy consumption to GDP ratio, selected countries, 2012

0 0.05 0.1 0.15 0.2 0.25

Japan

OECD Total

Australia

United States

World

New Zealand

Non-OECD Total

South Korea

Canada

China

toe /'000 2005 US$PPP



Figure 10.14: Thermal and metallurgical coal exports, top 10 countries, 2013

NorthKorea

MongoliaKazakhstanCanadaSouth Africa

ColumbiaUnited States

RussiaAustraliaIndonesia

100

200

300

400

Mt

1

34

5 67 8 9 10

2


Figure 10.15: LNG exports, top 10 countries, 2013

1691469 PJ

20

40

60

80

Mt

1

24 5 6 7 8 9 10

YemenOmanRussiaAlgeriaTrinidad & Tobago

NigeriaIndonesiaAustraliaMalaysiaQatar

3

Source: IEA 2014, Gas information.


Appendix: Units and conversionsThis section outlines the main units of measurement used in the BREE Australian Energy Statistics, and conversions to other commonly used units. It also includes energy content conversions (calorific values), for converting between volume/mass units and energy units.

Table A1: Units of measurement and abbreviations

Units Metric prefixes Other abbreviations

J joule k kilo 103 (thousand) bcm billion cubic metres

L litre M mega 106 (million) m3 cubic metre

t tonne G giga 109 (billion) ft3 cubic feet

g gram T tera 1012 (trillion) bbl barrel

W watt P peta 1015 Mtoe million tonnes of oil equivalent

Wh watt hour E exa 1018 Gcal gigacalorie

b billion 109 MBtu million British thermal units

Source: BREE 2014, Guide to the Australian Energy Statistics.


Table A2: Conversion between units of volume

To: bbl ft3 L m3

From: multiply by:

bbl 1 5.615 159 0.159

ft3 0.1781 1 28.3 0.0283

L 0.0063 0.0353 1 0.001

m3 6.289 35.3147 1000 1

Source: IEA 2005, Energy Statistics Manual.

Table A3: Conversion between units of energy

To: PJ Gcal Mtoe MBtu GWh

From: multiply by:

PJ 1 238 800 0.02388 947 800 277.8

Gcal 4.1868 x 10-6 1 10-7 3.968 1.163 x 10-3

Mtoe 41.868 107 1 3.968 x 107 11630

MBtu 1.0551 x10-6 0.252 2.52 x 10-8 1 2.931 x 10-4

GWh 0.0036 860 8.6 x 10-5 3412 1Source: IEA 2005, Energy Statistics Manual.


Table A4: Gross energy content of solid fuels

GJ/t GJ/t

Black coal Brown coal

New South Wales Victoria 10.3

Exports South Australia 12.4

metallurgical coal 29 Briquettes 22.1

thermal coal 27

Electricity generation 23 Uranium

Steelworks 32 Metal (U) 560 000

Other 23 Uranium oxide (U3O8) 470 000

Queensland

Exports Other

metallurgical coal 29 Coke 27

thermal coal 27 Wood (dry) 16.2

Electricity generation 21 Wood (green) 10.4

Other 23 Bagasse 9.6

Western Australia

Thermal coal 19.7

Tasmania

Thermal coal 22



Table A5: Gross energy content of gaseous fuels

MJ/m3

Natural gas (production)

Victoria 38

Queensland 37.45

Western Australia 40

South Australia, New South Wales 37.45

Northern Territory 40

Average sales quality 39.3

Ethane (average) 64.7

Town gas 39

Coke oven gas 18.1

Blast furnace gas 4



Table A6: Gross energy content of liquid fuels

volume specific volume weight

MJ/L L/t GJ/t

Primary fuels


indigenous 37 1250 46.3

imports 38.7 1160 44.9

Naturally occurring LPG 27 1866 49.4

Refined products

Automotive diesel oil 38.6 1182 45.6

Automotive gasoline 34.2 1360 46.4

Aviation gasoline 33.1 1412 46.8

Aviation turbine fuel 36.8 1261 46.4

Ethanol 23.4 1266 29.6

Fuel oil low sulphur 39.7 1110 44.1

Heating oil 37.3 1238 46.2

Industrial diesel fuel 39.6 1135 44.9

Lubricants and greases 38.8 1120 43.4

bitumen 44 981 42.7

solvents 34.4 1229 44

waxes 38.8 1180 45.8

LPG

propane 25.5 1960 49.6


volume specific volume weight

MJ/L L/t GJ/t

butane 28.1 1760 49.1

mixture 25.7 1890 49.6

Methanol 15.6 1263 19.7

Naphtha 31.4 1534 48.1

Power kerosene 37.5 1230 46.1

Refinery fuel (fuel oil equivalent) 40.8 1050 42.9

Other

Liquefied natural gas 25 2174 54.4


Table A6: (continued)



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