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energy in australia

2006
Australian Government Department of
Industry Tourism and Resources

abare
© Commonwealth of Australia 2006

This work is copyright. Apart from any use as permitted under the Copyright
Act 1968, no part may be reproduced by any process without prior written
permission from the Commonwealth, available from AusInfo. Requests and
inquiries concerning reproduction and rights should be addressed to the
Manager, Legislative Services, AusInfo, GPO Box 1920, Canberra ACT 2601.

ISSN 1833-038X

Produced and compiled by Kim Donaldson, ABARE.

The author appreciates the contribution of ABARE colleagues Damien Riwoe,


Kelly Driscoll and other Energy and Minerals Branch staff, also Gail Condy,
Julie Easton, Chris Lancaster and Andrew Wright for their input on the
content and for the design and formatting of the report.

Published by: Produced for:


ABARE Department of Industry
GPO Box 1563 Tourism and Resources
Canberra ACT 2601 GPO Box 9839
www.abareconomics.com Canberra ACT 2601
www.industry.gov.au
heading

foreword

Energy is fundamental to Australia’s economy and to our modern


lifestyle. The reliable supply of liquid fuels, electricity and natural gas at
competitive prices is crucial to our prosperity.
The Australian energy sector is responding to reform of domestic
markets, increasing international demand for our energy exports and the
emergence of new energy sources and technologies. Improvements
in energy efficiency and the development of new technologies will be
increasingly important for Australia’s international competitiveness.
The year 2006 has seen renewed interest in energy issues. The
Australian Government recognises the critical importance of energy and
has established a comprehensive policy framework to ensure the future
competitiveness of the Australian energy sector. The Government’s
2004 energy white paper, Securing Australia’s Energy Future, continues
to provide the foundation for the nation’s energy policy, as well as
detailing the initiatives being implemented by the Government to help
ensure Australia’s long term prosperity.
Energy in Australia 2006 is an essential reference for anyone
with an interest in Australia’s energy sector. It covers all aspects of
energy production and use, from natural resources through to final
consumption. I commend Energy in Australia 2006 to everyone in
Australia with an interest in energy issues.

The Hon Ian Macfarlane MP


Minister for Industry,
Tourism and Resources

energy in australia 2006 [ iii ]


abbrevations and sources of
energy information

ABARE Australian Bureau of Agricultural and Resource Economics


DITR Department of Industry Tourism and Resources
DOE Department of Energy (United States)
EIA Energy Information Administration (US DOE)
IEA International Energy Agency (within the OECD)
LNG liquefied natural gas (principally methane)
LPG liquefied petroleum gas (principally propane and butane)
NGL Natural gas liquid hydrocarbons, other than methane, derived
from the natural gas stream in separation and/or liquefaction facilities
OECD Organisation for Economic Cooperation and Development

Apelbaum Consulting Group www.apelbaumconsulting.com.au


Association of Australian Ports and
Marine Authorities Inc. www.aapma.org.au
ABARE www.abareconomics.com
Australian Bureau of Statistics www.abs.gov.au
Australian Financial Markets Association www.afma.com.au
Australian Greenhouse Office www.greenhouse.gov.au
Australian Institute of Petroleum www.aip.com.au
BP Statistical Review of World Energy www.bp.com
Department of Industry, Tourism and Resources www.industry.gov.au
Energy Information Administration www.eia.doe.gov
Energy Network Association www.ena.asn.au
Energy Supply Association of Australia www.esaa.com.au
Geoscience Australia www.ga.gov.au
Hart Downstream Energy Group www.hartenergy.com
International Energy Agency www.iea.org
Korea Energy Economics Institute www.keei.re.kr
National Electricity Code Administrator www.neca.com.au
National Electricity Market Management Co. www.nemmco.com.au
Global-Roam Pty Ltd www.nem-review.info
Office of the Renewable Energy Regulator www.rec-registry.com
Ozmine www.intierra.com
Ux Consulting Company www.uxc.com

[ iv ] energy in australia 2006


contents

glossary and units vi

overview 1
resources 3
export market drivers and prices 7
coal production and trade 11
liquid fuels – production and trade 21
liquid fuels – domestic refining 29
gas production and trade 35
electricity 41
energy consumption 55
transport and infrastructure 65
renewable energy 69

conversion factors 77

energy in australia 2006 [v]


glossary and units

bagasse The fibrous residue of the sugar cane milling process


that is used as a fuel (to raise steam) in sugar mills.
biogas Landfill (garbage tips) gas and sewage gas. Also referred
to as biomass gas.
coal Byproducts such as blast furnace gas (from iron and
byproduct steel processing), coal tar and benzene/toluene/xylene
(BTX) feedstock and coke oven gas (from the coke
making process).
conversion The process of transforming one form of energy into
another (derived) form before final end use. Energy
used in conversion is the energy content of fuels
consumed as well as transformed by energy producing
industries. Examples are natural gas and liquefied
petroleum gas used in town gas manufacturing, all
hydrocarbons used as feedstocks in oil refineries, and all
fuels (including electricity) used in powerstations
— therefore, energy used in conversion also includes
energy lost in the production, conversion and transport
of fuels (such as energy lost in coke production) plus
net energy consumed by pumped storage after allowance
for the energy produced.
crude oil Naturally occurring mixture of liquid hydrocarbons under
normal temperature and pressure.
condensate Hydrocarbons recovered from the natural gas stream that
are liquid under normal temperature and pressure.
derived or Fuels produced or derived by conversion processes
secondary to provide the energy forms commonly consumed.
fuels They include petroleum products, thermal electricity,
town gas, coke, coke oven gas, blast furnace gas and
briquettes.
liquid fuels All liquid hydrocarbons including crude oil, condensate, liqui-
fied petroleum gas and other refined petroleum products.
natural gas Gases that include commercial quality sales gas in the
form of liquefied natural gas, ethane and methane

[ vi ] energy in australia 2006


glossary

(including coal seam and colliery gas) as well as


plant and field use of noncommercial quality
gas. In this report, natural gas also includes town
gas and gas from garbage tips and sewage plants.
petajoule The joule is the standard unit of energy in general
scientific applications. One joule is the equivalent of one
watt of power radiated or dissipated for one second. One
petajoule, or 280 terawatt hours,is the heat energy content
of about 43 000 tonnes of black coal or 29 million litres of
petrol.
petroleum Generic term for all hyrocarbon oils and gases,
including refined petroleum products.
petroleum All hydrocarbons used directly as fuel. These
products include liquefied petroleum gas, refined products used
as fuels (aviation gasoline, automotive gasoline, power
kerosene, aviation turbine fuel, lighting kerosene, heating
oil, automotive diesel oil, industrial diesel fuel, fuel oil,
refinery fuel and naphtha) and refined products used in
nonfuel applications (solvents, lubricants, bitumen,
waxes, petroleum coke for anode production and
specialised feedstocks).
primary The forms of energy obtained directly from nature.
fuels They include nonrenewable fuels such as black
coal, brown coal, uranium, crude oil and condensate,
naturally occurring liquid petroleum gas, ethane and
natural gas, and renewable fuels such as wood,bagasse,
hydroelectricity, wind and solar energy.
total final The total amount of energy consumed in the final
energy or ‘end use’ sector. It is equal to total primary consumption
consump- energy less energy consumed or lost in conversion,
tion transmission and distribution.
total Also referred to as total domestic availability.
primary The total of the consumption of each primary
energy fuel (in energy units) in both the conversion and
consump- end use sectors. It includes the use of primary fuels in
tion conversion activities — notably the consumption of fuels

energy in australia 2006 [ vii ]


used to produce petroleum products and electricity. It also
includes own use and losses in the conversion sector.
town gas All manufactured gases that are typically reticulated
to consumers. These include synthetic natural gas,
reformed gas,tempered liquid petroleum gas and
tempered natural gas. In this report, town gas is
included with natural gas.

units standard metric other


J joules prefixes cm cubic metre (m3)
L litres k kilo 103 (thousand) bbl barrel
t tonnes M mega 106 (million) Mtoe million tonnes
g grams G giga 109 (1000 million) of oil equivelant
Wh watt-hours T tera 1012
b billion (109) P peta 1015
E exa 1018

conversions factors
1 barrel = 158.987 L
1 kWh = 3600 kJ
1 MBTU = 1055 MJ (BTU = British Thermal Unit)
1m3 = 35.515 cubic feet
1 L propane liquid = 0.272m3 gas
1 L butane liquid = 0.235 m3 gas
1 L LNG = 0.625 m3 natural gas
Indicative energy contents of fuels are listed at the end of the publication.

conventions used in tables and figures


0.0 is used to denote a negligible amount. Small discrepancies in totals
are generally the result of the rounding of components.
All graphs and figures are sourced from ABARE unless otherwise
stated.

[ viii ] energy in australia 2006


heading

overview
Heading
Australia is a resource rich Australia is overwhelmingly
country with significant reserves an energy exporter, with trade in
of liquid petroleum, natural gas, energy dominated by coal, LNG
coal and uranium. It is one of the and uranium. However, Australia
few OECD countries that is a is a net importer of liquid fuels,
significant net energy exporter. including crude oil and other
Since 1986, Australia has refinery feedstocks and refined
been the world’s largest exporter petroleum products, such as
of coal, and since 1989 has gasoline, diesel and fuel oil.
emerged as one of the largest The value of most energy
exporters of liquefied natural gas commodity exports is forecast
(LNG) and uranium.
Energy commodity exports Value of major Australian
are an important part of the commodity exports, 2005-06
economy. Coal
Iron ore, pellets
Australian energy exports Gold
Crude oil
Copper
Thermal coal Wine
40 Metallurgical coal Alumina
Uranium Aluminium
30 LPG
LNG LNG
Crude and ORF Beef, veal
20
Nickel
Wheat
10
Wool
Dairy
$b
Iron, steel
1980 1985 1990 1995 2000 2005 2010
-81 -86 -91 -96 -01 -06 -11 $b 5 10 15 20 25

energy in australia 2006 [1]


Annual growth in energy increased by 40 per cent in 2005-
consumption Australia 06 to reach $21 billion.
Total domestic consumption
5 real GDP
of energy in Australia in 2004-05
4 was around 5525 petajoules,
3 an increase of 1.9 per cent
2 from 2003-04. Australia’s
total energy incremental rate of growth in
1 consumption
energy consumption has fallen
% over time. Domestic energy
–1 consumption is dominated by
1992 1995 1998 2001 2004 coal, which is used mainly to
-93 -96 -99 -01 -05
generate electricity.
The energy sector is
to rise over the medium term as particularly capital intensive,
prices remain relatively high in accounting for around 13 per cent
historical real terms. of Australia’s total capital stock.
The value of Australia’s energy Eight per cent of Australia’s gross
imports has grown in real terms domestic product is derived from
by an average 8.8 per cent a year the energy sector but the sector
over the past twenty years, and employs only 2 per cent of the
Australian labour force.

1] Energy related industries in Australia, 2004-05


End year Gross Industry Employ-
capital stock investment value added ment
A$b A$b A$b ‘000
Downsteam petroleum 114 0.6 13 8.3
Upstream petroleum
and coal mining 172 19 43 29
Electricity, gas
and water supply 147 10 20 93
Energy related industries 333 29 76 130
Australia 2 592 201 745 1 015
Note: Industry value added for coal mining and petroleum extraction includes all mining and
for total Australia excludes dwellings, taxes and subsidies; end year capital stock and gross
investment for downstream petroleum includes marketing assets; all values are in 2004-05 $A.
Sources: Australian Bureau of Statistics, Australian System of National Accounts, cat. no. 5204,
Employment by Industry, cat. no. 6291005.

[2] energy in australia 2006


resources

At current levels of production, The importance of continued


Australia’s energy resources petroleum exploration in
are expected to last for many Australia is highlighted by
decades to come. the relatively low reserves
Australian reserves of to production ratio for crude
uranium and coal account oil. By contrast, the reserves
for a significant proportion of to production ratios for both
total world resources of these condensate and LPG are
commodities. In addition, a large relatively high.
proportion of Australian black Australia’s identified natural
coal reserves are high quality gas resources have increased
bituminous coals with low sulfur fourfold over the past two
and low ash content. Australian decades, particularly in the
crude oil and natural gas liquids western and north central areas
are typically of the light variety of Australia. Today, around 90 per
and relatively low in sulfur. cent of estimated recoverable

2] Australia’s petroleum resources, by state, at 1 January 2005 a


Crude oil Condensate LPG Natural gas
GL GL GL bcm
Victoria 35 18 27 181
Queensland 5 0 0 3
South Australia 1 3 5 35
Western Australia 104 193 119 2 046
Northern Territory 12 84 61 313
Tasmania 1 2 2 8
a Economic demonstrated resources only.
Source: Geoscience Australia, Oil and Gas Resources of Australia.

energy in australia 2006 [3]


[4]
Australia’s energy resources Bonaparte Basin
DARWIN
18%
Ranger
16%
Oil and gas basins Browse Basin
Resources are shown as a percentage Laura Basin
of total resources. Estimated Australian 16% (not producing)
resources at 1 January 2005
gas = 163 981 liquids = 29 856 PJ 18%

(Geoscience Australia 2004)

Galilee

energy in australia 2006


Coal basins Carnarvon Basin Basin
51% Bowen Basin

Uranium mineral Amadeus Basin


58%
deposit 0.1%
Callide Basin
Cooper/Eromanga
Australia’s energy resources

0.1% Basin Maryborough Basin


Operating uranium Carnarvon 1.8% Adavale Basin Surat
Basin
mines Arekaringa 1.1% Tarong Basin
Basin
Bowen/Surat Moreton Basin
Perth Basin Basin BRISBANE
Beverley

0.6% Olympic Dam 0.2%


Leigh
Oil Creek Gunnedah Basin
0.6%
PERTH Gloucester Basin
Gas
Collie Sydney Basin
ADELAIDE SYDNEY
0 200 400 600 800 1000 Oaklands Basin WOLLONGONG
Current Coal production PORT KEMBLA
scale in kilometres Bacchus Latrobe
Marsh Valley
Anglesea
MELBOURNE Gippsland Basin 10%
Otway Basin Bass
Basin
0.2% 4.3%
Locations are indicative only. Fingal
Sources: Energy Networks Association; Geoscience Australia; NSW Department of Mineral Resources; 1.2% 2.0%
Queensland Department of Natural Resources and Mines; Victorian Department of Primary Industries HOBART
0.4%
Western Australian Department of Industry and Resources; ABARE.
resources

reserves of natural gas are Economic demonstrated


located off the west and north resources January 2005
west coast of Australia. Petroleum
In addition to natural gas
250 Oil
reserves, there is growing
200
commercial utilisation of
150 LPG Condensate
Australia’s reserves of coal
seam gas. The majority of these 100
reserves are located in the black 50
coal deposits of Queensland and GL
New South Wales, close to the 1984 1988 1992 1996 2000 2004
Sydney and Brisbane gas markets. Gas
Black coal resources are
2500
located in most states, with
2000
significant quantities of high
1500
quality black coal in New South
Wales and Queensland. These 1000
two states have 40 per cent 500
and 56 per cent of Australia’s bcm
economic demonstrated 1984 1988 1992 1996 2000 2004
resources (EDR) respectively Coal
(Geoscience Australia 2006). 50 Black coal
Black coal resources in 45
Western Australia, South Australia
40
and Tasmania are small, but Brown coal
35
locally significant.
30
Australia’s lignite resources
are substantial, with 24 per cent Gt

of the world’s EDR located in 1984 1988 1992 1996 2000 2004
Australia. Lignite deposits occur Uranium
RAR recoverable at costs of less than
in South Australia, Western US$80/kg U (EDR equivalent)
700
Australia and Tasmania, as well as
in Victoria where all of Australia’s 600
EDR of brown coal is located. 500
Australia’s identified uranium 400
resources have more than
kt
doubled over the past two
1992 1995 1998 2001 2004
Source: Geoscience Australia

energy in australia 2006 [5]


resources

Mineral and petroleum The Olympic Dam uranium


exploration expenditure deposit in South Australia — one
of only three producing uranium
Private petroleum mines in Australia — is the
2000
Other
mineral world’s largest deposit.
1500 resources Around 97 per cent of
Australia’s current economic
1000
reserves of uranium are located
500 at Olympic Dam along with the
deposits at the Beverley and
A$m Ranger mines and several as yet
1975 1980 1985 1990 1995 2000 2005 unexploited resources. Principal
-76 -81 -86 -91 -96 -01 -06
locations with potential for new
Source: Australian Bureau of Statistics
mines are Honeymoon in South
Australia, Jabiluka and Koongarra
decades, with the majority of in the Northern Territory and
these resources located in South Kintyre and Yeelirie in Western
Australia, the Northern Territory Australia.
and Western Australia.

3] Australia’s economic demonstrated resources, January 2005


Share of Reserves to
` Australia world production a
% yrs
Coal b
Black coal Gt 40 5.4 >100
Brown coal Gt 38 23.7 >500
Petroleum c
Oil GL 158 0.3 d 21 d
Condensate GL 301 na na
LPG GL 214 na na
Natural (sales) gas bcm 2 587 1.4 63
Uranium e kt 701 26.5 63
a 2005 rates of Australian production. b Recoverable resources. c McKelvey classification
estimate. d Numbers for oil denote naturally occuring crude oil, condensate and LPG combined.
e Reasonably assured resources recoverable at costs of less than US$80/kg U. bcm = billion
cubic metres. na Not available.
Sources: Geoscience Australia, Australia’s Identified Mineral Resources; Oil and Gas Resources
of Australia; BP, Statistical Review of World Energy.

[6] energy in australia 2006


export market drivers and prices

Prices for most energy years have also discouraged


commodities in 2006 and 2007 new ventures, thereby reducing
are expected to remain robust opportunities for increased
as a result of continued strong production.
global demand. Escalating costs The United States, the
in the mining sector in recent Republic of Korea and Japan

4] World price indicators in 2005-06 US dollars


2001-02 2002-03 2003-04 2004-05 2005-06
Coal prices
Hard coking coal US$/t 47.85 49.22 48.95 74.36 117.39
Semisoft coking coal US$/t 38.92 35.92 37.40 54.16 83.22
Thermal coal US$/t 33.65 28.42 31.22 46.47 48.48
Oil and petroleum prices
Crude oil – world trade
weighted average a US$/bbl 24.11 28.69 31.19 42.92 57.25
Gasoline
Singapore spot price b US$/L 0.19 0.22 0.27 0.35 0.45
Gas prices
Natural gas
– domestic spot price c A$/GJ 3.27 3.14 3.18 3.13 3.16
Liquefied natural gas d
– export unit value s A$/t 383 360 290 312 357
Uranium price US$/lb 10.71 11.16 15.94 23.05 36.79
a International prices. b Financial year averages of weekly rates; average contract selling prices
fob of internationally traded crude oils only, weighted by estimated export volume. c Financial
year averages of daily spot prices in the Victorian gas market. d Calculated from LNG export
values and volumes. s ABARE estimate. Sources: ABARE, Australian Commodity Statistics;
Energy Information Administration; VENCorp Gas Market, Victoria

energy in australia 2006 [7]


Average growth in major energy are heavily dependent on
markets, 1995 – 2005 imported energy. Australia,
as a major energy exporter, is
8 well positioned to supply these
markets. China, although not
6 yet a major energy importer, has
experienced strong economic
4 growth over the past decade
2
and its energy consumption has
grown more rapidly than in the
% rest of the world. While it has
OECD OECD China GDP China significant fossil fuel resources,
GDP energy growth energy China currently consumes
growth consumption consumption
growth growth slightly more energy than it
produces, with the shortfall
principally in oil and gas.

5] World primary energy consumption, 2005


Oil Coal Natural gas Uranium Total
Mtoe Mtoe Mtoe Mtoe Mtoe
Australia 39.7 52.2 23.1 0.0 115.0
Canada 100.1 32.5 82.3 20.8 235.7
France 93.1 13.3 40.5 102.4 249.3
Germany 121.5 82.1 77.3 36.9 317.8
Italy 86.3 16.9 71.1 0.0 174.3
Spain 78.8 21.4 29.1 13.0 142.3
Japan 244.2 121.3 73.0 66.3 504.8
Korea, Rep. of 105.5 54.8 30.0 33.2 223.5
United Kingdom 82.9 39.1 85.1 18.5 225.6
United States 944.6 575.4 570.1 185.9 2 276.0
Other OECD 374.0 159.5 193.5 54.3 781.3
Brazil 93.6 13.5 18.2 2.2 127.5
Iran 78.4 1.1 79.6 0.0 159.1
China 327.3 1 081.9 42.3 11.8 1 463.3
India 115.7 212.9 33.0 4.0 365.6
Russian Federation 130.0 111.6 364.6 33.9 640.1
Other 821.1 340.3 661.9 44.0 1 867.3
World 3 836.8 2 929.8 2 474.7 627.2 9 868.5
Sources: BP, Statistical Review of World Energy; The Ux Consulting Company.

[8] energy in australia 2006


export market

Oil price
World average trade weighted prices, quarterly, ended June 2006

real (2005) London bombings,


80 Iraq begins Hurricane Katrina
Iranian exporting oil under
revolution, UN Resolution 986
60 Shah Iraq Hurricane
Oil deposed invades OPEC cuts Ivan
embargo Kuwait production
40 begins
9/11
Oct 1973

20
Spanish
nominal Invasion bombings
US$/bbl of Iraq

1971 1973 1976 1979 1982 1985 1988 1991 1994 1997 2000 2003 2006
Source: US EIA

6] Macroeconomic indicators in key Australian markets


percentage change from previous year

2001 2002 2003 2004 2005 2006


% % % % % %
Economic growth a
Australia b 2.0 3.9 3.2 4.1 2.7 2.9
United States 0.8 1.6 2.7 4.2 3.5 3.3
European Union 3.3 0.8 0.6 1.7 1.6 na
Japan 0.2 –0.3 1.4 2.3 2.8 2.8
OECD c 0.7 1.6 1.7 3.1 2.7 3.0
China d 7.5 8.3 9.3 10.1 10.2 10.4
Korea, Rep. of 3.8 7.0 3.1 4.6 4.0 5.0
Industrial production
Australia –3.6 –0.3 0.0 4.2 3.7 na
United States –3.6 –0.3 0.0 4.2 3.7 na
Japan –6.3 –1.1 3.0 5.3 1.2 3.5
Germany 0.2 –1.0 0.4 3.0 3.4 3.8
United Kingdom –1.5 –2.0 –0.3 0.8 –1.8 na
OECD –2.6 –0.4 0.7 3.6 2.4 3.0
China 9.9 12.6 17.0 16.7 16.4 16.5
Korea, Rep. of 0.4 8.2 5.2 10.0 5.9 na
a Growth of real gross domestic product. b Financial years: 2001 = 2000-01. c Regarded as
nineteen countries for all years. d Gross national product. na Not available.
Source: ABARE, Australian Commodity Statistics; Australian Commodities.

energy in australia 2006 [9]


7] World primary energy production, 2005
Natural
Oil Coal gas Uranium Total
Mtoe Mtoe Mtoe Mtoe Mtoe
Australia 23 199 32 127 381
Canada 148 35 165 155 502
Mexico 191 4 33 0 228
Norway 150 0 71 0 221
United Kingdom 95 15 86 0 197
United States 330 567 489 14 1 399
Other OECD 41 186 114 7 347
China 175 990 37 10 1 211
Indonesia 55 81 66 0 203
India 38 189 27 3 256
Iran 203 0 77 0 280
Saudi Arabia 506 0 58 0 564
United Arab Emirates 126 0 41 0 167
Other Middle East 352 1 76 0 429
Russian Federation 459 128 530 46 1 163
Nigeria 122 0 19 0 141
South Africa 0 137 2 9 148
Venezuela 154 7 25 0 185
Other 729 348 541 185 1 803
World 3 895 2 887 2 487 556 9 825
Sources: BP, Statistical Review of World Energy; Uranium Information Centre.

World seaborne coal trade, 2005

Metallurgical Thermal
United States 13.4% Australia 64.6% Australia 19.6%
other 16.9%
Russian
Federation 4.9%
China 2.7%
South Africa 13.1% China 12.0%

Canada 14.4%
Russian Federation Colombia 10.1%
12.1%
Indonesia 16.3%
Source: IEA, ABARE

[ 10 ] energy in australia 2006


coal production and trade

Australia is a secure, reliable large ports at Dalrymple Bay,


and competitive supplier of high Hay Point and Gladstone.
quality metallurgical and thermal In New South Wales, coal
coal. is exported from Newcastle
Australia accounts for around and Port Kembla. The port of
7 per cent of world black coal Newcastle has two coal loading
production, three-quarters terminals and is the largest coal
of which is sourced from exporting port in the world.
opencut mines. Lignite is mined Extensive rail networks
principally in Victoria and in South in New South Wales and
Australia, where it is used for Queensland connect the coal
electricity generation. ports with the major coal
Australia accounts for a third producing areas in each state.
of world hard coal trade and With increased production,
approximately half of world world prices for coal have
metallurgical coal trade. More
than three-quarters of Australia’s Australian black coal industry
black coal production is destined
for export. New South Wales is
the major supplier of thermal 500 Production
coal exports, while Queensland Net exports
400
is the major supplier of
metallurgical coal exports. 300
Most of the coal produced 200
from the Bowen Basin in
100
Queensland is destined for
export from ports near Mackay Mt
and Gladstone, including the 2001 2008 2015 2022 2029
-02 -09 -16 -23 -30

energy in australia 2006 [ 11 ]


[ 12 ]
Australia’s coal basins and major export ports DARWIN

Coal export ports


Laura Basin
Black coal basins
Lignite basins

Abbott Point

energy in australia 2006


Galilee Bowen Basin
Basin Hay Point and
Dalrymple Bay
Callide Basin
Gladstone
Maryborough
Arekaringa Basin
Basin Surat Basin Tarong Basin
Northern Perth Moreton Basin
BRISBANE
Basin
Leigh Gunnedah Basin
Creek
Australia’s coal basins and major export ports

Sydney Basin Gloucester Basin


PERTH
Collie Newcastle
ADELAIDE SYDNEY
Oaklands Basin WOLLONGONG
Port Kembla
Bacchus Marsh
Anglesea
MELBOURNE Latrobe Valley

Locations are indicative only Fingal


HOBART
Source: Association of Australian Ports and Marine Authorities
coal

eased slightly from the peak capacity. Significant new


levels of 2003-04 but have investment in port capacity both
remained strong with continued in Queensland and New South
growth in world demand for both Wales means that Australian
thermal and metallurgical coal. In coal exports are forecast to
response to this, Australian black increase steadily over the next
coal producers are continuing several years to meet increased
with investments in new mining world demand.

8] Australian salable coal production, by state


1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06
Mt Mt Mt Mt Mt Mt Mt
Lignite
Victoria 67.4 65.0 66.7 66.8 66.3 67.2 na
South Australia 2.9 3.2 3.1 3.2 3.2 3.6 3.6
Black coal
New South Wales105.2 110.2 114.3 111.5 114.2 122.1 123.2
Queensland 124.3 138.3 148.6 153.6 162.2 172.5 171.4
Tasmania 0.4 0.3 0.4 0.3 0.4 0.4 0.4
Western Australia 6.6 6.2 6.2 6.1 6.0 6.2 6.2
Sources: Coal Services Pty Ltd; Queensland Department of Natural Resources and Mine;
Victorian Department of Primary Industries, Minerals and Petroleum; ABARE, Australian Com-
modities.

energy in australia 2006 [ 13 ]


9] Major coal producers in Australia, 2005
Owner Mine State Resources
Mt
Coal and Allied Industries Bengalla NSW 510
Coal and Allied Industries Hunter Valley Operations NSW 2 880
Coal and Allied Industries Mount Thorley NSW 189
Coal and Allied Industries Warkworth NSW 1 193
Hunter Valley Coal
Corporation PL Mount Owen NSW 329
Mt Arthur Coal PL Mount Arthur Operations NSW 3 564
Oakbridge PL Bulga NSW 1 565
Anglo Coal Australia PL Drayton NSW 191
CLP Power Asia Yallourn (brown coal) Vic 488
Hazelwood Hazelwood (brown coal) Vic 527
Loy Yang Loy Yang (brown coal) Vic 1 500
Anglo Coal Australia PL Callide and Boundary Hill Qld 970
Anglo Coal Australia PL Moura Qld 785
BHP Billiton Mitsubishi Alliance Blackwater Qld 1 008
BHP Billiton Mitsubishi Alliance Goonyella/Riverside Qld 2 483
BHP Billiton Mitsubishi Alliance Norwich Park Qld 659
BHP Billiton Mitsubishi Alliance Peak Downs Qld 2 671
BHP Billiton Mitsubishi Alliance Saraji Qld 1 285
Curragh Queensland Mining PL Curragh Qld 88
NCA Joint Venture Newlands Qld 493
Oaky Creek Coal Joint Venture Oaky North Qld 442
Pacific Coal PL Blair Athol Qld 125
Pacific Coal PL Meandu Qld 599
BHP Billiton Mitsubishi Alliance Crinum Qld 222
Rio Tinto Kestrel Qld 463
Macarthur Coal Coppabella Qld 337
BHP Billiton Mitsubishi Alliance South Walker Creek Qld 495
Queensland Coal Mine Jellinbah East Qld 196
Management
Peabody Energy Corporation Australian Coal Operations Qld 400
CAML Resources Foxleigh Qld 102
Anglo Coal Australia PL German Creek Qld 248
Anglo Coal Australia PL Moranbah North Qld 261
South Australian Government Leigh Creek (brown coal) SA 500
Griffin Coal Muja and Ewington WA 123
Sources: Ozmine, Australian Black Coal Statistics.

[ 14 ] energy in australia 2006


coal

10 ] Australian major new coal projects, 2005


New Coal
Project (region) Operator capacity type Capex Startup
Mtpa A$m
Black coal mines – committed
Ashton (Hunter Valley) Ashton Coal 3 M/T 150 2007
Operations
Austar (Cessnock) Yanzhou 2.5–3 M na 2006
BMA project – stage 2 BMA 2 M 240 2006
(central Qld)
Boggabri (Boggabri) Idemitsu Kosan 1.5 T 35 2006
Carborough Downs AMCI 1.5–4 M 136 2006
(central Qld)
Clermont (central Qld) Rio Tinto 12 T 450 2008
Curragh North (Emerald) Westfarmers Ltd 2.4 M 360 2007
Dawson Mine (central Qld) Anglo Coal 12 M/T 1000 2007
East Boggabri (Boggabri) White Haven 1–1.5 M/T 38 2006
German Creek Coal Anglo Coal 1 M 67 2006
Projects (NE of Emerald)
Grasstree (NE of Emerald) Anglo Coal 3 M 275 2006
Hail Creek (central Qld) Rio Tinto 2.5 M 304 2006
Isaac Plains project Aquila/AMCI 1.6 M/T 66 2006
(Moranbah Coal Holdings)
Kogan Creek (SE Qld) C S Energy 2.8 T 80 2006
Lake Lyndsay (central Qld) Anglo Coal 4 M/T 674 2006
Millenium (Moranbah) Excel Coal/ 1.5 M 161 2006
Millenium
Mount Owen Bulga Xstrata 2 T 75 2007
(Singleton)
Newpac longwall Resource Pacific 4 M na 2007
expansion (Hunter Valley) Holdings
Rolleston (Emerald) Xstrata 8 540 2008
Ulan longwall (NW Mudgee Xstrata 3.5 T 89 2006
Wambo opencut (Singleton) Excel Coal 1.5 M/T 59 2006
Wambo underground Excel Coal 3 M/T 101 2007
(Singleton)
Wyong (NW of Wyong) Korea Resources/ 4 T 400 na
Sojitz Corp
Coal type: M = metallurgical; T = thermal. Capex = capital expenditure. continued...

energy in australia 2006 [ 15 ]


10 ] Australian major new coal projects, 2005 continued
New Coal
Project (region) Operator capacity type Capex Startup
Mtpa A$m
Black coal mines – proposed
Belmont (Gunnedah) Whitehaven 1.5 T na 2007
Bickham (N of Scone) Winsian 2.5 T na 2007
Investments
Belvedere (Gladstone) Aquila Resources/ 12 M 500 na
AMCI/CVRD
Boggabri (Boggabri) Idemitsu Kosan 3 T na na
Ensham Central Ensham 3 M 140 2008
opencut (Emerald) Resources
Ensham Central Ensham 7 T 450 2010
underground (Emerald) Resources
Goonyella (Moranbah) BMA 7 M na na
Glendell (Singleton) Xstrata 2 M/T 123 2007
Glen Wilga (Chinchilla) Tarong Energy 0.5 T 150 2010
Grosvenor (central Qld) Anglo Coal 5 M 500 2010
Maules Creek (Boggabri) Rio Tinto 6.5 T 450 na
Monto Coal – stage 1 Macarthur Coal/ 1 T 35 na
(S of Gladstone) Burnett Coal
Moolarben (Mudgee) White Mining 12 na 220 2007
Moorvale West (Moranbah) Macarthur Coal 0.5 M 50 2008
Moranbah South (Moranbah) Anglo Coal/ na na 600 2011
Kumba Australia
Mount Authur North BHP 8 T 300 na
(Muswellbrook)
New Acland (Oakey) New Hope 1.5 T na 2007
Corporation
Peak Downs (Moranbah) BMA 6 M na na
Queensland Coke Macarthur Coal 2.1 M 1700 2008
(Rockhampton)
Saddler’s Creek Anglo Coal 4 M/T 128 na
(Muswellbrook)
Sonoma Coal Qcoal 2 M/T 160 2007
(Collinsville)
Togara North Xstrata 2 T 120 2010
(SW of Blackwater)
continued...

[ 16 ] energy in australia 2006


coal

10 ] Australian major new coal projects, 2005 continued


New Coal
Project (region) Operator capacity type Capex Startup
Mtpa A$m
Blackwater coal BMA na na 272 2006
handling and processing
facility – stage 3 expansion
(Blackwater W of Rockhampton)
Boggabri opencut (Boggabri) Idemitsu Kosan 1.5 T 35 2006
Dalrymple Bay coal terminal Badcock & 85 na 850 2008
expansion (Dalrymple Bay) Brown Infastructure
Hay Point coal terminal BMA 44 na 70 2007
phase 2 (S of Mackay)

Kooragang Island Port Waratah 102 170 2007


expansion (Newcastle) Coal Services
Red Mountain Joint venture Excel Coal/ na na 115 2006
(SE of Moranbah) BMA
Coal prep, handling and rail project
RG Tanna coal terminal Central Qld
expansion (Gladstone) Ports Authority 67 na 232 2006
Sandgate rail grade Aust. Rail Track 165 na 68 2006
seperation (Sandgate) Corporation
Vermont Coal (Dysart) Bowen Basin
Coal 2.5 M 70 na
Wandoan Miles Xstrata 3 na 700 2012
Wiggins Island Central Qld 25 na 450 2009
(Wiggins Island) Ports Authority
Wilkie Creek Peabody Surat 0.8 T 15 2006
(Surat Basin)
Black coal infrastructure – committed
Abbot Point Coal Terminal Bowen Ports 25 na 430 2009
Corp. of
Queensland
Coal type: M = metallurgical; T = thermal. Capex = capital expenditure. Mtpa = million tonnes
per annum. BMA = BHPBilliton Mitsubishi Alliance. na Not available. Some proposed projects
have been omitted from the list where the startup date is unknown. Refer to the source for a
complete listing of projects.
Source: ABARE, Minerals and energy: major development projects, Australian Commodities.

energy in australia 2006 [ 17 ]


11 ] Australian coal export outlook in 2005-06 $A
2006-07 2007-08 2008-09 2009-10 2010-11

Thermal coal exports


Volume Mt 117.2 119.3 121.6 128.3 133.2
Value A$m 7 242 7 250 7 188 7 381 7 346
Export unit value A$/t 64.7 65.0 64.2 64.0 62.9
Metallurgical coal exports
Volume Mt 137.3 145.8 155.2 162.0 166.1
Value A$m 16 253 15 574 15 827 15 966 15 335
Export unit value A$/t 122.0 113.6 111.1 110.0 105.7
Source: ABARE, Australian Commodities.

12 ] Export loadings and capacity for major coal ports


Throughput Capacity Expansions Expansions
2004-05 2005-06 next 2 years next 5 years
Mt Mtpa Mtpa Mtpa
New South Wales
Newcastle a 78 89 102 120 (+20)
Port Kembla 10 16 16 16
Queensland
Abbot Point 13 15 21 50
Brisbane 3 5 5 5
Dalrymple Bay 48 59 68 85
Gladstone a 34 45 65 74
Hay Point 34 35 44 57
a Ports with two or more coal loading terminals.
Source: DITR.

[ 18 ] energy in australia 2006


coal

13 ] Australian coal exports, by type, by destination


2001-02 2002-03 2003-04 2004-05 2005-06
Metallurgical coal
Brazil Mt 4.22 4.46 3.85 3.09 3.17
China a Mt 0.12 0.77 3.56 4.19 2.86
Chinese Taipei Mt 4.01 3.82 5.31 7.09 7.71
France Mt 4.45 4.42 4.11 3.89 3.33
Italy Mt 2.34 1.63 1.93 2.53 2.26
United Kingdom Mt 4.39 4.09 4.06 4.45 3.93
Other EU Mt 11.49 9.88 11.65 13.37 14.51
India Mt 11.94 14.11 13.58 17.44 16.39
Japan Mt 40.39 41.32 41.38 44.96 44.25
Korea, Rep. of Mt 6.63 7.44 10.14 12.46 7.70
South Africa Mt 1.63 1.36 1.28 1.88 1.53
Rest of world Mt 14.21 14.50 10.88 9.55 12.83
Total Mt 105.83 107.79 111.73 124.92 120.47
Thermal coal
Chile Mt 0.57 0.71 1.12 0.41 0.83
China a Mt 2.95 3.99 2.45 1.75 4.00
Chinese Taipei Mt 10.24 10.82 9.89 14.33 13.21
France Mt 0.31 0.40 0.58 0.47 0.74
Other EU Mt 5.95 6.97 7.16 2.85 1.50
India Mt 1.27 1.45 1.74 1.21 1.23
Japan Mt 49.62 52.44 58.78 57.28 59.33
Korea, Rep. of Mt 13.40 14.20 16.22 17.95 20.24
Malaysia Mt 1.31 2.49 2.53 3.37 2.77
Other ASEAN b Mt 1.17 0.14 0.07 0.42 1.34
Mexico Mt 1.91 3.26 2.29 4.24 4.75
Rest of world Mt 3.33 3.09 3.85 2.12 0.87
Total Mt 92.04 99.95 106.69 106.40 110.81
a Includes Hong Kong. b ASEAN includes Brunei Darussalam, Indonesia, the Philippines,
Thailand, Vietnam as well as Malaysia. na Not available.
Sources: Australian Bureau of Statistics, International Trade, electronic data service, cat. no.
5464.0; Department of Foreign Affairs and Trade, Computer database compiled from ABS trade
data.

energy in australia 2006 [ 19 ]


14 ] Australian exports of coal, by coal type and value in 2005-06 dollars
2001-02 2002-03 2003-04 2004-05 2005-06
Coking coal, high quality
Volume Mt 65.5 66.5 67.5 80.7 77.5
Value A$m 5 971 5 543 4 589 7 938 12 203
Unit value A$/t 91.2 83.4 67.9 98.3 157.5
Coking coal, excluding high quality
Volume Mt 40.4 41.3 44.2 44.2 43.0
Value A$m 2 995 2 516 2 293 3 165 4 800
Unit value A$/t 74.2 60.9 51.9 71.6 111.7
Total coking coal
Volume Mt 105.8 107.8 111.7 124.9 120.5
Value A$m 8 966 8 059 6 882 11 102 17 003
Unit value A$/t 84.7 74.8 61.6 88.9 141.1
Steaming coal
Volume Mt 92.0 99.9 106.7 106.4 110.8
Value A$m 5 905 4 813 4 622 6 539 7 206
Unit value A$/t 64.2 48.2 43.3 61.5 65.0
Source: ABARE, Australian Commodity Statistics; Australian Commodities.

[ 20 ] energy in australia 2006


liquid fuels – production and trade

Australia is around 60 per cent used to feed local refineries.


self sufficient in the primary Increasing production in the
production of crude oil and natural north west and decreasing
gas liquids on an energy content production in south east have
basis. resulted in an increase in
The Carnarvon Basin is Australian trade in crude oil, both
currently Australia’s most prolific imports and exports.
region for the production of Crude oil and condensate is
crude oil, condensate and LPG, also produced from the onshore
accounting for 63 per cent of Cooper–Eromanga Basin, which
total Australian production. The straddles the border between
more mature oil fields situated South Australia and Queensland.
in the Gippsland Basin in Bass Small quantities of crude oil are
Strait have been producing produced from several other
since the late 1960s; however, onshore basins, including the
production from that basin
peaked in the mid-1980s and
Australian oil and LPG production
has declined steadily since. The and net imports
Gippsland Basin now constitutes
23 per cent of Australia’s total 2500
production of naturally occurring
2000
petroleum liquids.
Net imports
While production from the 1500
Carnarvon Basin in the north 1000
west of Australia is mostly
500 Production
exported, production from the
Gippsland Basin in south eastern PJ
Australia is predominantly 1969 1979 1989 1999 2009 2019 2029
-70 -80 -90 -2000 -10 -20 -30

energy in australia 2006 [ 21 ]


Australian oil flows, 2005-06

Naturally occurring LPG


125 Domestic consumption
Conversion
Transport
948
1325
Crude oil and ORF

Imports

1192 1091 1758


726 a Industrial
292
Production
Own use Electricity
38
–101 Exports
Imports –85 Commercial
–482 21
Exports 628
Residential
14
Units: Petajoules Petroleum products
a Production plus stocks change (including LPG) Other
69

15 ] Austalian liquid fuel production, by basin


2001-02 2002-03 2003-04 2004-05 2005-06
ML ML ML ML ML
Crude oil and condensate
Adavale 0 3 0 0 0
Amadeus 72 59 136 132 53
Bonaparte 5 987 4 923 3 083 2 175 1 797
Bowen–Surat 53 40 44 47 43
Canning 4 4 3 2 2
Carnarvon 19 745 19 303 16 808 16 487 15 456
Barrow Island 947 896 705 568 390
North West Shelf 15 184 15 711 14 404 12 900 9 789
Other 4 965 4 385 3 830 4 081 6 056
Cooper–Eromanga 0 0 0 0 0
Queensland 648 690 632 799 638
South Australia 868 762 623 622 696
Gippsland 9 062 7 708 6 855 5 460 4 456
Otway 23 23 13 7 3
Perth 7 121 388 518 398
Total 37 820 35 324 30 716 27 313 24 321
LPG a 4 612 4 682 4 639 4 628 4 629
a Naturally occurring liquified petroleum gas.
Sources: DITR, Australian Petroleum Statistics.

[ 22 ] energy in australia 2006


liquid fuels

Perth and Canning Basins in Although much of Australia’s


Western Australia, the Amadeus current oil production is sourced
Basin in the Northern Territory from mature oil and gas
and the Bowen–Surat Basin in provinces, many prospective
Queensland. The Bowen–Surat areas offshore are yet to be fully
Basin and the Otway Basin explored. There is a possibility
straddling South Australia of significant undiscovered oil
and Victoria also produce and gas resources in Australia’s
condensate. The other major four major offshore regions, the
liquids producing region is the Gippsland Basin in Victoria, the
Bonaparte Basin off the northern Bonaparte Basin in the Northern
coast of Australia, some of which Territory and the Browse and
is shared with Timor Leste. Carnarvon Basins in Western
Australia is a net importer of Australia (OGRA 2000).
crude oil and refined products, The continued development
but a net exporter of LPG, mainly of technology is also bringing
in the form of butane. the economic production of oil
More than half of Australia’s from gas and coal (gas to liquids
crude oil and condensate exports and coal to liquids) closer to
were shipped to the Asian economic reality.
region in 2005-06, with Korea, However, despite the
Japan and Singapore being expected continuation of
large markets for Australian strong world demand for
crude oil feedstock. Japan is crude oil, Australian crude oil
Australia’s largest market for and condensate production is
LPG, accounting for three- projected to remain flat over
quarters of the export volume. the longer term, while domestic
Singapore and New Zealand are consumption is projected to
Australia’s largest market for grow by 1.4 per cent a year (see
refined products, taking 37 per chapters on energy consumption
cent and 34 per cent respectively and transport).
in 2005-06. Largely on the basis of
Since the mid-1990s, increasing production of natural
Australia’s imports of Middle gas, Australian LPG production
Eastern crude oil have gradually (principally propane and butane)
fallen and been partially replaced is expected to rise in the
by crude oil from the south east long term. Australia produces
Asian region. significantly more LPG in total

energy in australia 2006 [ 23 ]


Australian liquid fuels exports and imports, 2005-06

South East Asia


28000 70%
Middle East 26000 North Asia
4000 8% 24000 34%
6000
2000 22000 North America
0% 4000 7%
ML 20000 4000
Export Import 2000
18000 ML 2000
2% 0%
16000 Export Import ML
Export Import
14000
12000
10000
Oceania
8000
34%
6000
4000 8%
4000 12%
2000
Refined products 2000
ML
Crude oil ML Export Import
Export Import
Exports = Australian exports to region
Imports = Australian imports from region % = region as percentage of total

16 ] Major Australian listed oil and gas companies and their reserves a
Reserves
ASX Market Proved plus
Company code capitalisation a Proved probable
2005-06A$ mboe mboe
Woodside WPL 27.7 900.0 1244.0
Santos STO 6.1 414.0 774.0
Origin (upstream ORG 5.2 na 413.0
and downstream)
Oil Search OSH 3.3 84.7 111.3
Hardman HDR 0.9 na 123.0
Australian Worldwide AWE 1.2 na 41.4
Exploration
Arc energy ARQ 0.4 5.4 9.0
ROC oil ROC 0.8 13.0 33.0
Tap oil TAP 0.3 na 10.0
Beach petroleum BPT 0.9 na 36.2
Cue Energy Resources CUE 0.1 5.1 10.1
Petsec energy PSA 0.3 na 7.5
.

a As of 2004, figures include overseas gas and oil holdings. na Not available. mboe = million
barrels oil equivalent. Sources: Annual reports of listed companies

[ 24 ] energy in australia 2006


liquid fuels

17 ] Australian petroleum exports, by destination


2001-02 2002-03 2003-04 2004-05 2005-06
ML ML ML ML ML
Crude oil and other refinery feedstock a
China 1 160 1 699 2 389 732 404
Chinese Taipei 1 920 580 125 916 346
Japan 3 168 3 402 2 079 1 927 2 201
Korea, Rep. of 5 521 4 012 3 778 2 787 2 725
New Zealand 1 426 784 722 1 425 465
Singapore 6 215 6 567 3 948 2 861 3 161
United States 2 674 2 944 1 808 1 154 297
Other 1 989 2 195 2 677 3 929 3 427
Total 23 965 22 188 17 526 15 731 13 026
Liquefied petroleum gas
China 441 154 696 598 393
Japan 2 575 2 783 2 109 2 081 2 142
Korea, Rep. of 127 234 0 81 0
Other 68 23 111 84 264
Total b 3 211 3 194 2 916 2 844 2 800
Refined products
Fiji 473 384 122 7 62
Japan 71 26 29 53 74
New Zealand 1 247 1 250 828 1 113 716
Singapore 367 246 127 471 771
Other Pacific 921 861 818 37 135
United States 153 99 123 0 37
Other 177 273 427 164 288
Total 3 409 3 140 2 474 1 847 2 082
Liquefied natural gas cs 7.60 7.83 7.91 10.59 12.38
a Does not include ships and aircraft stores. b Includes confidential exports. c 1 tonne of LNG is
approximately equal to 2174 litres of LNG. s ABARE estimate.
Sources: DITR, Australian Petroleum Statistics; Australian Bureau of Statistics; ABARE.

energy in australia 2006 [ 25 ]


18 ] Rates of return on assets in Australia’s petroleum industry
2000-01 2001-02 2002-03 2003-04 2004-05
% % % % %
Downstream a 1.1 –4.1 9.5 2.7 8.5
Upstream 11.4 12.6 10.8 12.4 12.5
a Numbers are for calendar years: – 2004-05 = 2004.
Sources: Australian Institute of Petroleum; Australian Petroleum Production and Exploration
Association Limited 2005.

19 ] Australian petroleum imports, by source


2000-01 2001-02 2002-03 2003-04 2004-05 2005-06
ML ML ML ML ML ML
Crude oil and other refinery feedstock
Indonesia 3 788 6 795 5 380 4 012 3 328 3 929
Malaysia 2 249 2 290 2 299 4 073 4 761 3 976
New Zealand 1 104 1 089 990 708 663 644
Other Middle East 453 42 334 42 158 199
Papua New Guinea 2 772 2 208 1 683 1 189 1 717 2 386
Qatar 439 646 191 0 77 0
Saudi Arabia 4 016 3 004 3 680 1 517 3 101 1 602
Singapore 287 554 719 596 652 830
United Arab Emirates 3 170 2 305 2 294 2 207 1 917 864
Vietnam 6 282 5 652 6 699 5 778 6 560 6 708
Other 1 930 2 724 3 690 3 375 3 122 3 286
Total 26 489 27 308 27 958 23 498 26 054 24 424
Refined products
Indonesia 121 80 57 281 162 100
Korea, Rep. of 144 289 144 280 237 1 002
Malaysia 8 27 45 97 93 721
Middle East 846 474 140 1 036 588 689
New Zealand 20 42 17 3 4 84
Singapore 1 692 2 110 2 832 5 904 7 395 8 463
United States 401 462 407 434 423 455
Other a 1 549 1 171 1 855 3 370 2 334 3 024
Total 4 781 4 655 5 497 11 405 11 236 14 038
a Includes confidential imports of refined products.
Sources: DITR, Australian Petroleum Statistics; Australian Bureau of Statistics; ABARE.

[ 26 ] energy in australia 2006


liquid fuels

than is consumed and while the In 2005-06, LPG represented


domestic market for propane 8.5 per cent of fuel energy used
is likely to tighten, due to its in spark ignition automobile
specialised use in household engines in Australia. With higher
and recreational applications, petrol prices and government
domestic availability and exports incentives for LPG use,
of liquefied petroleum gases in automotive LPG demand is
general are expected to increase. projected to grow by almost 3
per cent a year.

20 ] Australian petroleum medium term outlook in 2005-06 $A


2005 2006 2007 2008 2009 2010
-06 -07 -08 -09 -10 -11
Crude oil and condensate
Production ML 27 311 24 320 26 859 32 250 31 297 30 865
Export volume ML 15 731 13 026 15 216 24 856 24 146 23 850
Export value A$m 6 330 6 444 7 217 10 465 9 440 8 588
Imports ML 26 054 24 424 22 972 28 792 29 241 29 584
Natural gas
Production Gm3 41 42 48 53 61 65
LNG export volume Mt 11 12 15 15 17 19
Export value A$m 3 199 4 286 5 193 5 719 6 091 6 371
LPG
Production ML 4 628 4 722 4 859 4 860 5 157 5 245
Export volume ML 2 844 2 800 2 804 3 440 3 560 3 730
Export value A$m 804 973 903 1 050 1 022 1 063
Petroleum products
Refinery production ML 40 202 36 274 34 636 40 362 40 564 40 767
Other ML 4 366 5 827 5 422 6 970 7 753 8 405
Exports (excl. LPG) ML 1 847 2 082 1 891 2 176 2 149 2 103
Imports (incl. LPG) ML 11 188 15 143 18 129 11 922 12 003 12 232
Consumption
Total net ML 54 017 55 151 56 310 57 078 58 171 59 301
Source: ABARE, Australian Commodities.

energy in australia 2006 [ 27 ]


21 ] Value of Australian trade in petroleum products in 2005-06 dollars
2001-02 2002-03 2003-04 2004-05 2005-06
A$m A$m A$m A$m A$m
Exports
Automotive gasoline 435 397 296 350 419
Diesel fuel 343 397 309 171 238
Aviation turbine fuel 206 246 182 112 80
Fuel oil 78 31 22 53 215
Aviation gasoline 37 31 22 27 54
Kerosene 1 0 0 0 0
Lubricants 183 152 105 115 139
Other products 95 42 35 43 52
Total refined products 1 377 1 297 971 870 1 195
Liquefied petroleum gas 805 926 684 830 1 002
Bunkers a 849 838 735 981 1 322
Crude oil and other
refinery feedstock 7 132 6 929 5 344 6 532 6 638
Liquefied natural gas 2 916 2 822 2 298 3 301 4 416
Imports
Automotive gasoline 500 616 1 235 1 510 2 344
Diesel fuel 462 607 1 199 1 995 4 076
Aviation turbine fuel 76 158 233 498 536
Fuel oil 160 195 331 376 569
Lubricants 141 206 218 297 418
Liquefied petroleum gas 129 83 175 148 194
Other products 346 355 410 462 636
Total refined products 1 814 2 219 3 801 5 286 8 773
Crude oil and other
refinery feedstock 8 323 9 319 6 971 10 315 12 833
a Ships and aircraft stores.
Sources: ABARE, Australian Mineral Statistics; Australian Bureau of Statistics, International
Trade, electronic data service, cat. no. 5464.0; DITR, Australian Petroleum Statistics.

[ 28 ] energy in australia 2006


liquid fuels – domestic refining

The petroleum refining industry in the heavier products such as


in Australia produces a wide kerosene, diesel, fuel oil and
range of petroleum products lubricants. Most of the export
derived from crude oil and of propane and butane comes
condensate feedstock. from naturally occurring field
In 2005-06, automotive production. However, residential,
gasoline, diesel fuel and aviation commercial and recreational
turbine fuel accounted for 88 consumption of LPG in Australia
per cent of the total production is predominantly of propane, so
of refined products in Australia. the net availability of propane for
The ratio of domestic production export is only half that of butane.
to gross sales in Australia for Australia’s downstream
gasoline and turbine fuel is petroleum industry includes
relatively high — 87 per cent eight major oil refineries
and 97 per cent respectively. operated by four companies
Australia is less self sufficient — BP, Caltex, Mobil and Shell.

Australian refinery input and production, 2005-06

Petroleum products ML
Refinery LPG 1 125
Feedstock Automotive gasoline 16 528
Aviation turbine fuel 5 216
36 895 ML Automotive diesel oil 10 154
Fuel oil 1 048
Other products a 2 204
a Includes aviation gasoline, kerosene, industrial and marine diesel, lubricating oils, greases and basestocks, bitumen
and other products. Source: Department of Industry, Tourism and Resources, Australian Petroleum Statistics.

energy in australia 2006 [ 29 ]


In order to achieve higher fuel year. At the same time, however,
quality standards effective from the consumption of petroleum
2006, all the major oil refinery products in Australia is projected
companies operating in Australia to increase by around 1.4 per
have undertaken refinery cent a year. As a result, the share
upgrades. The only exception of petroleum products sourced
is the Port Stanvac refinery in from local refineries (as opposed
South Australia, which ceased to being imported) is projected
operating in 2003 and is currently to fall from the current level of
under care and maintenance. 78 per cent to around 70 per
Over the longer term, refining cent by 2029-30.
capacity as well as refinery Meeting the cost of 2006
output in Australia is assumed to standards for fuel quality in
increase by around 1.3 per cent a Australia has been difficult for the

22 ] Australia’s refinery capacity


Capacity
Operator Year a Capacity utilisation s
MLpa MLpa
New South Wales
Clyde Shell 1928 4 980 4 382
Kurnell Caltex 1956 7 210 6 345
Queensland
Bulwer Island BP 1965 5 100 4 488
Eromanga
(minirefinery) IOR 1985 87 50
Lytton Caltex 1965 6 110 5 284
South Australia
Port Stanvac c Mobil 1963 (4 525) –
Victoria
Altona Mobil 1949 4 640 4 083
Geelong Shell 1954 6 900 6 072
Western Australia
Kwinana BP 1955 8 030 7 650
Total d 43 057 38 354
a Year refinery was commissioned. b Average for 2002. c Ceased production in July 2003; cur-
rent status care and maintenance. d Total of current operating refineries. s ABARE estimate.
MLpa = Megalitres per annum.
Source: Australian Institute of Petroleum.

[ 30 ] energy in australia 2006


liquid fuels

local refining industries following International gasoline prices


several years of low profits as June quarter 2006
a result of competition from
newly built refineries in the Asian Turkey
region. Between 1997 and 2003, Norway
underlying profit for the local Netherlands
industry averaged $277 million Belgium
a year, while new investment,
United Kingdom
largely directed at meeting the
Germany
new fuel standards, has averaged
almost $500 million. Korea

However, in the Asia Pacific Denmark


region, gasoline and diesel Italy
consumption have grown rapidly Finland
and many countries have been France
implementing stricter fuel Portugal
standards for these fuels. The Sweden
effect of these developments
Ireland
has been a significant reduction
Austria
in spare refinery capacity in
the region and in the past four Hungary
years industry profits in Australia Luxembourg
have improved as a result of Slovak Rep.
increased refining margins. The Switzerland
pretax component of Australian Spain
gasoline prices remains among
Czech Rep.
the lowest in the OECD and the
Poland
total gasoline price is the fourth
lowest. Japan

Some proposed coal or Greece

gas to liquid fuel projects are New Zealand


projected to come on line over Australia
the medium to long term to Canada
augment established biofuels United States
projects in the production of Mexico
nonconventional liquid fuels. Tax component
There are three main producers 0 50 100 150 200 250
of fuel grade ethanol in Australia, Source: DITR Ac/litre

energy in australia 2006 [ 31 ]


Australian self sufficiency in principally using wheat starch
refined products (excluding LPG) and C grade molasses.
In 2003, the Australian
2500 Government announced the
Consumption Biofuels Capital Grants Program,
2000 which provides an incentive
Production of 16 cents a litre for new or
1500
expanded projects producing a
1000 minimum of 5 million litres of
biofuel a year. The Fuel Tax Act
PJ 2006 ensures a more consistent
1979 1989 1999 2009 2019 2029 and neutral tax regime for fuels
-80 -90 -2000 -10 -20 -30
used in vehicles through the

23 ] Australian major petroleum liquids projects


New
Project (region) Operator capacity Type Capex Startup
A$m
Western Australia
Enfield oil project Woodside 100 kbd oil 1480 2006
(Exmouth) Energy/Mitsu
Stybarrow oil field BHP Billiton/ 80 kbd oil/NGL 817 2008
(Exmouth) Woodside Energy
Vincent oil field
(Exmouth) Woodside 100 kbd oil 980 2008
Energy/Mitsui
Angel gas/ condensate NWS Joint 310 PJ/ gas/con- 1 600 2008
field (Carnarvon Basin) Venture 50 kbd densate
Puffin AED Oil 30 kbd oil 71 2007
Northern Territory
Condensate processing Darwin 60 kbd gasoline/ 450 2008
facility (Darwin) Clean Fuels diesel/
LPG/
jet fuel
Victoria
Monash Energy Project Australian Power 60 kbd 5 000 2010
(Latrobe Valley) and Energy
Capex = Capital expenditure. Mtpa = million tonnes per annum; kbpd = thousand barrels per
day.
Source: ABARE, Minerals and energy: major development projects, Australian Commodities.

[ 32 ] energy in australia 2006


liquid fuels

24 ] Australian production of refined petroleum products


2001-02 2002-03 2003-04 2004-05 2005-06
ML ML ML ML ML
Automotive gasoline 18 000 17 984 17 375 17 913 16 528
Automotive diesel oil 13 064 13 335 12 544 12 822 10 154
Aviation turbine fuel 5 390 5 149 4 964 5 325 5 216
Fuel oil 1 684 1 441 1 105 1 092 1 048
Liquefied petroleum
gas a 1 718 1 657 1 062 995 1 125
Industrial and marine
diesel fuel 105 117 84 22 31
Bitumen 725 751 678 1 091 831
Lubricants 564 521 259 202 163
Aviation gasoline 147 134 114 144 119
Heating oil 192 195 118 106 102
Other a 5 088 5 439 5 183 4 844 5 363
Total products 46 677 46 723 43 486 44 555 40 679
a Includes byproducts of petrochemical and downstream processing.
Sources: DITR, Australian Petroleum Statistics; ABARE, Australian Mineral Statistics.

25 ] International fuel standards


Aus- United Indo-
Europe tralia a States b Japan b China b nesia b
Gasoline
Sulphur ppm 50 150 80 100 800 2000
MTBE % 15 0
Olefins c % 18 18 10 20 35
Aromatics c % 35 42 25 42 40 0
Benzene % 1 1 1 1 3 0
Diesel
Sulphur ppm 50 50 15 50 2000 5000
a 2006 standards. b 2004 standards. c US number is average across states but excludes California.
Source: HARTS APEC Downstream Energy Services.

energy in australia 2006 [ 33 ]


setting of excise rates based on Liquid biofuels production in
the energy content of the fuel. Australia is estimated to have
However, a 50 per cent discount been 57 ML in 2005-06 (41
will still be applied to alternative ML of ethanol and 16 ML of
fuels entering the excise net biodiesel). Significant expansion
from 2015, including LPG, LNG, occurred in biodiesel production
ethanol and biodiesel. These capacity in 2006 and output is
fuels will remain excise free until expected to increase in 2006-07
2011 when phasing in of excise as the new capacity reaches full
begins. production.

26] Liquid biofuel production in Australia


Location Startup date Principal feedstock
Fuel ethanol
Manildra Group – Nowra, NSW (pre-existing waste wheat starch
CSR Distilleries – Sarina, Nth Qld ethanol molasses
Rocky Point Mill – Woongoolba, Qld industries) molasses
Biodiesel
Australian Biodiesel Group 2002 used cooking oil
– Berkeley Vale, NSW
Biodiesel Industries Australia Mar 2003 used cooking oil
– Rutherford, NSW
Australian Renewable Fuels Mar 2006 tallow, vegetable oil
– Largs bay, SA
Eco-Tech Biodiesel - Narangba, Qld May 2006 tallow
Australian Biodiesel Group July 2006 tallow
– Narangba, Qld
Australian Renewable Fuels July 2006 tallow, vegetable oil
– Picton, WA

[ 34 ] energy in australia 2006


gas production and trade

Increasingly, the majority of the majority of which was from


Australia’s natural gas production the onshore Cooper–Eromanga
has come from gas fields located Basin.
off the west coast of Australia. Victoria accounted for a
This reflects the growing share further 20 per cent, the majority
of Australia’s known natural gas of which came from the offshore
reserves in the west and north Gippsland Basin. The onshore
west of the country. Otway Basin in south western
In 2005-06, 66 per cent of Victoria has also contributed
Australia’s natural gas was small volumes to the Victorian
produced in the Carnarvon market for many years. Several
Basin off the coast of Western gas fields off the southern
Australia. coast of Victoria in the Bass and
At the same time, natural gas Otway Basins are currently being
production in South Australia developed.
accounted for about 12 per cent Natural gas produced in
of Australia’s total production, Queensland and the Northern

27 ] Asia Pacific LNG and natural gas prices 2005


US$/t
Australia exports all destinations 240
Japan imports from Australia 230
average all origins 245
Korea imports average all origins 397
United States imports average all origins 389
United States pipeline imports average all origins 381
Source: International Energy Agency; US Energy Information Administration; Korea Energy
Economics Institute.

energy in australia 2006 [ 35 ]


Territory accounts for 7 per cent to a production sharing contract
and 1.6 per cent respectively between the producers and
of total Australian production. the Timor Sea Designated
Queensland natural gas Authority for the Joint Petroleum
production is sourced from the Development Area. The
Adavale and Bowen–Surat Basins designated authority’s share of
and the Queensland sector of the revenue is apportioned 90
the Cooper–Eromanga Basin. per cent to Timor Leste and 10
Gas production in the per cent to Australia.
Northern Territory is sourced Adding to Australia’s natural
primarily from the onshore gas production is the growing
Amadeus Basin in central contribution from coal seam
Australia. Gas from the Bayu– gas. Coal seam gas production
Undan field in the Bonaparte in Australia was around 1800
Basin of the Timor Sea is subject gigalitres in 2005-06, of which 80

28] Australian sales gas production, by state


2000-01 2001-02 2002-03 2003-04 2004-05 2005-06
GL GL GL GL GL GL
Naturally occurring ethane and natural gas a
New South Wales 0 0 0 0 0 0
Northern Territory 459 471 452 424 479 494
Queensland
(Bowen–Surat) 632 533 650 640 706 650
South Australia 5 764 6 308 5 753 4 288 4 149 5 036
Tasmania 0 0 0 0 0 0
Victoria 6 507 6 671 6 532 7 747 7 758 7 435
Western Australia 18 641 18 560 20 179 20 561 24 582 25 887
Total 32 004 32 543 33 568 33 659 37 674 39 502

Coal seam gas b


New South Wales 216 224 211 213 210 260
Queensland 276 429 711 895 1 005 1 540
Total 493 652 922 1108 1 215 1 800
a Includes only methane or ethane produced from natural gas fields. b Calendar year estimates
for 2001 and 2002.
Sources: ABARE, Energy Statistics – Australian Energy; Geoscience Australia, Oil and Gas
Resources of Australia.

[ 36 ] energy in australia 2006


gas

per cent came from the Bowen– Australian natural gas market,
Surat Basin in Queensland and and there are several producers
the remainder from the Sydney supplying natural gas to the
Basin in New South Wales. domestic market from this region.
The domestic market for Australia exports natural gas in
natural gas in Australia is the form of liquefied natural gas
presently characterised by a small (LNG), most of which is currently
number of producers, a small sourced from the Carnarvon
number of large consumers and Basin on the north west shelf
limited depth in consumption, as off Western Australia. The North
reflected in the current limited West Shelf Joint Venture is in
range of alternative end uses. the process of expanding this
Historically, two major gas operation, with a fifth train due
producers have supplied most to be completed by 2008. From
of the eastern Australian natural the start of 2006, natural gas
gas market (South Australia, has also been supplied from the
Victoria, New South Wales and Conoco–Phillips Bayu–Undan
Queensland). Almost 90 per cent gas field in the Timor Sea, for the
of natural gas supplied to this production of LNG onshore near
market is from the Esso/BHP Darwin. Around 50 petajoules
Gippsland Basin joint venture of gas were brought ashore
and the Santos led operations from the Joint Petroleum
in the Cooper–Eromanga Basin. Development Area in 2005-06,
The Carnarvon Basin dominates representing Australia’s first large
supplies for the Western scale gas import.

Australian LNG exports Projected LNG demand by


importing country

Volume 150 Other


6 15 California/Baja
Value 125 China
India
4 10 100 Chinese Taipei
Korea
75 Japan
2 5 50

2005-06 25
A$b Mt
Mt
1990 1995 2000 2005 2010
-91 -96 -01 -06 -11 2004 2010 2015

energy in australia 2006 [ 37 ]


29 ] Australian major gas projects
New Gas Estimated
Project (region) Operator capacity type Capex startup
A$m
LNG – committed
Western Australia
Karratha LNG plant EnergyDevelop- 73 kt LNG 210 2007
(Karratha) ments Ltd
Kwinana LNG Plant Westfarmers 64 kt LNG 138 2008
North West Shelf Woodside 4.2 Mt LNG 2425 2008
– 5th train
(Burrup Peninsula)
LNG – proposed
Northern Territory
Timor Sea LNG project Methanol 2.5–3.0 Mt LNG 1000– 2011
(Timor Sea) Australia 1020
Sunrise Gas Woodside Energy/ 5.3 Mt LNG 5000 na
(Timor Sea) ConocoPhillips/
Shell/Osaka Gas
Western Australia
Gorgon LNG Chevron Texaco/ 10 Mtpa, LNG
(Barrow Island) Shell/ExxonMobil 300 TJpd, NG 11000 2010
Inpex Holdings
Browse LNG Woodside 7–14 Mt LNG na 2013
development Energy/BP/
(Browse Basin) BHP Billiton/
Chevon/Shel
Pilbara LNG (Scarborough gas)
(280 km NW of BHP Billiton 6 Mt LNG 5000 2011
Onslow)
Gas – committed
New South Wales
Camden Gas Sydney 14.5 PJpa CSG 150 2008
(near Sydney) Gas/AGL
Tasmania
BassGas project Origin 20 PJpa NG 500 2006
(Bass Basin) 80 ktpa LPG
3.3 kbpd CO continued...
LNG = liquefied natural gas; NG = natural gas; CSG = coal seam gas; CO = condensate; LPG =
liquefied petroleum gas. Capex = capital expenditure.

[ 38 ] energy in australia 2006


gas

29 ] Australian major gas projects continued...


New Gas Estimated
Project (region) Operator capacity type Capex startup
A$m
Victoria
Otway gas project Woodside 60 PJpa NG 1100 2007
(Otway Basin) 900 kbpa CO
125 ktpa LPG
BassGas project Origin, AWE, 20 PJ NG, 500 2007
Yolla field CalEnergy, 80 kt LPG
(Bass Strait) Santos 3.3 kbd condensate

gas – proposed
Victoria
Kipper Gas project Esso/BHP Billiton/ na 250 2009
(42 km offshore, Woodside/ Santos
Gippsland)
Western Australia
Blacktip gas discovery Woodside 26 PJpa NG 620 2009
(Bonaparte Basin)
Angel gas platform Woodside 310 PJpa NG 1600 2008
(Carnarvon Basin) 50 kbpd CO
Gorgon (Barrow Island) Chevron Texaco 10 Mt LNG 11 000 2010
300 TJpd NG
North West shelf – fifth train 4.4 Mt LNG 2000 2008
(North West Shelf)
Karratha LNG Plant Woodside Energy 58.4 kt LNG 150 2007
(Karratha) Developments
North West Shelf project Woodside Energy 4.4 Mt LNG 20 2008
extention (North West Shelf)
Dampier–Bunbury DBP 125 Tj/day 433 2007
gas pipeline (Dampier)
expansion (DBNGP)
Goodwyn A low Woodside Energy na na 2006
pressure train (Dampier)
Perseus-over-Goodwyn Woodside Energy na na na 2007
project (Dampier)
(DBNGP) expansion – stage 5
Ichthys gasfield Inpex Holdings 5–6 Mt LNG 6400–
(Browse Basin) 8000
Pluto Gas discovery Woodside Energy 5–7 Mt LNG 5000 2010
(Browse Basin/ Burrup Peninsula) continued...

energy in australia 2006 [ 39 ]


29 ] Australian major gas projects continued
New Gas Estimated
Project (region) Operator capacity type a Capex b startup
A$m
gas infrastructure – committed
Queensland
Berwyndale South Queensland 7.4 PJpa CSG 28 2007
(Argyle) (Roma) Gas
Tipton West coal Arrow Energy/ 10 PJ pa CSG 50 2 007
seam methane Beach Petroleum
(S of Dalby)
gas infrastructure – proposed
Northern Territory
Gove lateral pipeline AGL/Petronas na NG na 2009
(Weipa Qld to Gove NT) Consortium
Trans territory pipeline Woodside 40 PJ pa NG 650 2007
(Timor Sea to Gove)
Queensland
PNG – Qld gas pipeline Exxon Mobil/ 250 PJpa NG 2100 na
(PNG to Qld) Oil Search
Central Queensland gas 20–50 PJ pa NG 200 2008
pipeline (Moranbah to
GladstoneEnertrade)
Ballera lateral pipeline AGL/ Petronas na NG 1000 2 010
(Townsville to Ballera) Consortium
Western Australia
Bunbury gas pipeline DBP 375 TJ/day NG 1500 2009
expansion – stage 5
(Dampier to Bunbury)
LNG = liquefied natural gas; NG = natural gas; CSG = coal seam gas; CO = condensate; LPG =
liquefied petroleum gas. Capex = capital expenditure. Mtpa = million tonnes per annum; PJpa
= peta joules per annum; TJpd = terra joules per day; mcfpd = million cubic feet per day.
Source: ABARE, Minerals and energy: major development projects, Australian Commodities.

[ 40 ] energy in australia 2006


electricity

With over $86 billion in assets, customers (up 30 per cent)


the electricity industry ranks (ESAA).
as one of Australia’s largest Final consumption of
industries, making a direct electricity in Australia (excluding
contribution of 1.5 per cent electricity used in the conversion
to Australia’s gross domestic sector) has increased more than
product. threefold since 1973-74, from
Australia generated around 213 petajoules (59 TWh) to 771
244 TWh of electricity in 2004- petajoules (214 TWh) in 2004-05.
05 from a maximum capacity of Over the longer term, demand
53 gigawatts. Over the fifteen for electricity is expected to
years to 2004-05, the industry continue to grow strongly, with
increased delivery of electricity gross electricity consumption
by over 50 per cent to more projected to reach 1390

Electricity spot market prices in Australia’s eastern states


NEMMCO average wholesale

New South Wales Queensland Snowy Region


120 Victoria Tasmania
South Australia
100
80
60 average
trend
40
20
$/MWh monthly, ended june 2006
Dec Dec Dec Dec Dec Dec Dec
1999 2000 2001 2002 2003 2004 2005 2006

energy in australia 2006 [ 41 ]


30 ] Rates of return for government run electricity companies
in Australia, by state, 2003-04
Generation Transmission Distribution and retail
New South Wales 8.7 6.6 8.6
Queensland 5.3 6.9 7.2
Western Australia 10.9 10.9 10.9
Tasmania 4 5.5 8.2
Snowy 14.9 na na
Financial information is not available for privately owned companies. There are no government
owned electricity companies in Victoria or South Australia. Western Australia and Northern Terri-
tory electricity generators are integrated with other operations that cannot be readily separated.
Source: Electricity Supply Association of Australia, Electricity Australia.

31 ] Key performance indicators for the Australian electricity industry


2000-01 2001-02 2002-03 2003-04 2004-05
Generation capacity GW 42 44 44 45 45
Asset value A$b 86 93 98 na na
Capacity utilisation % 56 53 58 60 60
Electricity generation TWh 199 201 206 213 217
Employment ‘000 33 30 32 34 33
Labour productivity GWh/
employee 6.0 6.7 6.4 6.2 6.5
Number of customers ‘000 8 825 8 969 9 093 9 268 9 426
Retail price a
– nominal c/kWh 9.46 10.05 9.61 na na
– real b c/kWh 10.52 10.98 10.08 na na
Wholesale price c
– nominal c/kWh 4.76 3.39 3.36 3.21 3.47
– real b c/kWh 5.29 3.66 3.53 3.28 3.47
System minutes
not supplied d mins 13.53 5.11 8.04 4.58 4.43
System energy
not supplied MWh 3 656 1 440 3 415 1 494 1 566
Distribution losses % 5.8 5.8 5.9 5.7 5.9
Transmission
operation cost A$/MWh 1.34 1.52 na na na
a Average price. b 2004-05 A$ value. c Volume weighted average price (national electricity
market). d Average minutes – excludes Northern Territory. na Not available.
Sources: Energy Supply Association of Australia, Electricity Gas Australia; Electricity Australia,
Australian Bureau of Statistics, cat. no. 8226.0.

[ 42 ] energy in australia 2006


electricity

petajoules (386 TWh) by 2029- underutilised capacity, servicing


30. Black coal is expected to these levels of demand in the
remain the most commonly used future will require significant
fuel in electricity generation, new investment, in the order
although the share of natural gas of 25 additional megawatts of
is projected to rise by around 25 gas and coal fired capacity by
per cent. While there is currently 2029-30.

Electricity prices
Residential Industrial
Slovak Rep. Italy
Hungary Japan
Poland Turkey
Denmark Austria
Portugal Denmark
Netherlands Ireland
Italy Portugal
Germany Hungary
Czech Rep. Switzerland
Spain Slovak Republic
Austria Germany
Japan Mexico
Mexico Finland
Ireland Romania
Luxembourg United Kingdom
France Czech Republic
New Zealand Greece
Greece Australia
Korea Poland
Switzerland Spain
Finland Chile
Romania Taiwan
Australia Korea
Chile United States
Taiwan New Zealand
Canada Canada
Norway France
Argentina Norway
Argentina
Ac/kWh 10 20 30
Ac/kWh 5 10 15 20
Source: IEA Energy prices & taxes

energy in australia 2006 [ 43 ]


32 ] Australian major network capacity, 2006 a
Forward Reverse
Interconnector Location capability capability
MW MW
New South Wales to Armidale to Braemar 621 1 078
Queensland (QNI)
New South Wales to Terrinora to Mullumbimby 180 195
Queensland (Directlink)
Snowy to New Murray to Dederang winter 3 465 1 150
South Wales summer 3 127
Victoria to Snowy Buronga to Red Cliffs 1 235 1 863
Victoria to South Heywood to Tailem Bend 460 300
Australia (Heywood)
Victoria to South Red Cliffs to Berri 220 135
Australia (Murraylink)
Tasmania to Victoria Seaspray to Georgetown 630 480
(Basslink expected
capability)
Under-
Transmission Overhead ground
Length (km) 764 607 88 004
a Notional interregional capabilities. MW = megawatt.
Sources: NEMMCO, Statement of Opportunities; Electricity Supply Association of Australia,
Electricity Gas Australia.

[ 44 ] energy in australia 2006


electricity

In the early 1900s, the The central element of the


electricity supply industry reforms was the establishment
consisted of a mixture of both in December 1998 of the
private and public enterprises. ‘national electricity market’,
By the late 1940s, however, which links the Australian
the industry was predominantly
government owned. Successive Shares in Australian electricity
state governments chose to treat generation, by fuel
the electricity market as a natural
2004-05
monopoly, with the delivery Other 1.0%
Oil 1.4%
of electricity to consumers biogas 0.1%
Hydro 6.4%
organised via state owned, biomass 0.4%
Gas 14.3% wind 0.5%
vertically integrated utilities with
limited interconnection between
the various state markets.
Restructuring of the Brown
Australian electricity industry, coal 20.9% Black coal
56.0%
undertaken since the early
1990s, has consisted of vertical 2019-20
disaggregation of the inte- Other 3.0%
Oil 1.4%
grated, state owned utilities biogas 0.6%
Hydro 5.1%
into separate generation, biomass 1.2%
Gas 17.6% wind 1.2%
transmission, distribution and
retail supply components, with
corporatisation and, in some
cases, privatisation of the Brown Black coal
electricity businesses. coal 19.2% 53.7%
The generation sector is
now horizontally separated
into numerous competing 2029-30 Other 3.8%
Oil 1.4%
businesses. The transmission and Hydro 4.5%
biogas 0.5 %
distribution functions have also biomass 1.1%
been separated and re-regulated. Gas wind 2.2%
Distribution and retail businesses, 20.2%
where these activities are
undertaken by one company, Brown
coal 19.0%
have been ring fenced and retail
Black coal
competition is now widespread. 51.1%

energy in australia 2006 [ 45 ]


[ 46 ]
Transmission lines and generators
DARWIN Nhulunbuy
Jabiru
500 kV DC LINE
Pine Creek
330 kV Power Station
Katherine
275 kV Substation
Kununurra
220 kV Argyle Barron Gorge
McArthur River
Derby Fitzroy Crossing Cairns
132 / 110 kV Georgetown
Broome
66 kV Tennant Cree
k
Ross

energy in australia 2006


33 / 22 kV Port Hedland Proserpine
Karratha Shay Gap
Marble Bar Mackay
Telfer Moranbah
Nullagine Alice Springs
Wittenoom Barcaldine
Tom Price Jimblebar Rockhampton
Paraburdoo Newman Gladstone
Yulara Bundaberg
Carnarvon Plutonic
Wiluna Roma
, Denham Mt Keith Maryborough
Tarong
Mt Magnet
Kalbarri BRISBANE
Windimurra Murrin Murrin Olympic Dam
Geraldton
Dongara Menzies Leigh Creek
Woodada Kalgoorlie/Boulder Woomera Coffs Harbour
Kambalda Broken Hill Gunnedah
Nyngan
Australia’s transmission lines and generators

Whyalla Dubbo Port


PERTH Macquarie
Worsley Buronga Hillston Hunter Valley
Collie , Newcastle
Esperance Berri Hay Griffith
Margaret River Hopetoun Port Lincoln SYDNEY
Albany ADELAIDE Albury Canberra
Bendigo
0 200 400 600 800 1000
scale in kilometres Mt Gambier Anglesea
MELBOURNE DC link

Locations are indicative only.


Sources: NEMMCO, ESAA (2006) Gordon
HOBART
electricity

Capital Territory, New South traders also targeting specific


Wales, Victoria, South Australia, retail customers).
Queensland and Tasmania. The National Electricity
The competitive national Market Management Company
electricity market consists of (NEMMCO) is responsible for
a wholesale market, together managing both the spot market
with a competitive retail sector and the central coordination of
for the supply and purchase of the dispatch of electricity from
electricity, with the principal all generators to ensure that
aims to promote competition there is sufficient supply to meet
and efficiency in the production demand. NEMMCO also has
and consumption of electricity responsibility for maintaining
and associated services, and to power system security.
allow customers flexibility and Average wholesale prices
choice of supplier. In 2006, there have remained relatively constant
were 50 different companies that since the introduction of the
bid their generation output into national electricity market, with
the national electricity market, occasional price spikes caused
and eight main retailers (with by such factors as widespread
a number of generators and

33 ] Projected Australian electricity generation, by fuel


2004-05 2009-10 2014-15 2019-20 2029-30
PJ PJ PJ PJ PJ
Thermal
Black coal 508 545 602 649 745
Brown coal 190 199 215 229 260
Oil 13 13 14 14 14
Gas 129 168 200 238 331
Total 840 926 1 030 1 130 1 350

Renewables
Hydro 58 61 63 64 66
Wind 4.5 12.8 13.6 14.5 24.4
Biomass 3.4 6.1 9.4 14.6 19.7
Biogas 1.0 6.2 6.8 7.0 7.6
Total 67 86 92 100 118
Source: ABARE, Australian Energy: National and State Projections.

energy in australia 2006 [ 47 ]


Snapshot of Australia’s national electricity market, 2005-06

Queensland
QNI New South Wales
615
$31/MWh $43/MWh

51.2 TWh 10 412 MW Directlink 76.8 TWh 12 229 MW


51

State
Snowy–NSW

Volume weighted average annual price ($/MWh) 369


Snowy
Total annual demand (TWh)
$29/MWh
Capacity availability (MW)
0.5 TWh 3 676 MW
Average annual flow (MW)
166
Vic–Snowy

Heywood
South Australia Victoria
267 $36/MWh
$44/MWh

12.8 TWh 3 471 MW Murraylink 50.6 TWh 8 577 MW


27
BassLink
(operational in 2005)

19
Tasmania a
na

9.9 TWh s 2 570 MW


Outside the national electricity market
Western Australia Northern Territory
na na

14.5 TWh s 3 473 MW 1700 GWh s 482 MW

a Officially connected to the national electricity market in May 2006.


s ABARE estimate. na Not available.
Sources: HydroTasmania, Annual Report; Tasmania Power and Water Corporation,
Annual Report; Western Power Corporation, 2005 Generation Status Review;
NEM-Review, Global Roam.

[ 48 ] energy in australia 2006


electricity

heat waves, industrial disputes national body, the Australian


and generator malfunctions. Energy Regulator (AER), began
The transmission and operating with responsibility
distribution elements of the for transmission assets and
industry are made up of a market monitoring. By 2010,
network of service providers it is expected that the AER’s
which, until recently, were responsibilities will have grown
superintended through various such that is becomes the sole
federal and state regulatory regulator for the electricity
bodies. In 2005, a single industry nationally.

34 ] Major interconnector projects for Australia’s national electricity


market, 2006
Capacity
interconnector Project Forward Reverse Status Startup
MW MW
Central to northern HVAC augmen- 290 committed 4 years
Queensland tation
South west to HVAC augmen- 700 committed 1 year
South east Queensland tation
South west to T/R augmen- 400 committed 3–4 years
south east Queensland tation
South west to DCL 1000 potential 5 years
south east Queensland
Northern NSW to T/R augmen- 250 400 prefeasibility na
south west Queensland tation
Northern NSW to BTBC station 1000 1500 concept na
south west Queensland
Northern NSW to HVAC augmen- 1000 1000 concept na
south west Queensland tation
Victoria to Tasmania Basslink dupli- 500 500 concept na
cation
Northern South Australia HVAC augmen- 1100 committed 2 years
to Adelaide tation
HVAC = high voltage AC interconnection; T/R = transformer and/or reactor; DCL = double
circuit line; BTBC = back to back converter. na Not available.
Source: NEMMCO, Statement of Opportunities.

energy in australia 2006 [ 49 ]


35 ] Australian electricity capacity, by plant and fuel type, 2004-05
New South Queens- South
Wales b Victoria land c Australia
MW MW MW MW
Hydro a 3 785 511 144 0
Pump storage 240 0 500 0
Steam – black coal 11 670 0 8 055 0
Steam – brown coal 0 6 555 0 770
Steam – natural gas 0 510 132 1280
Steam – multifuel 0 0 0 0
Reciprocating engine 0 0 0 40
Gas turbine – natural gas 0 1 001 403 605
Gas turbine – oil product 50 0 338 113
Gas turbine – multifuel 0 0 0 0
Combined cycle – natural gas 160 0 215 663
Combined cycle – coal seam methane 0 0 625 0
Wind 0 0 0 0
Total 15 905 8 577 10 412 3471
Western Northern
Australia d Tasmania Territory Australia
Hydro a 2 2 265 0 6 707
Pump storage 0 0 0 740
Steam – black coal 1 370 0 0 21 095
Steam – brown coal 0 240 0 7 565
Steam – natural gas 0 0 0 1 922
Steam – multifuel 880 0 0 880
Reciprocating engine 0 0 74 114
Gas turbine – natural gas 372 0 247 2 628
Gas turbine – oil product 0 0 30 531
Gas turbine – multifuel 586 0 0 586
Combined cycle – natural gas 240 0 131 1 409
Combined cycle – coal seam methane 0 0 0 625
Wind 23 65 0 87
Total 3 473 2 570 482 44 889
a Nonscheduled small hydro plants are excluded. b Includes the ACT and the Snowy region.c
Includes generating capacity at Mt Isa.d Includes plants owned by Western Power Corporation
(now Verve Energy) in the South West Interconnected System, and excludes plants operated
under power purchase agreements. MW = megawatt.
Source: Electricity Supply Association of Australia, Electricity Gas Australia.

[ 50 ] energy in australia 2006


electricity

36 ] Principal generation businesses in Australia, 2005-06


Share of Share of
mainland mainland
Generation generation Revenue revenue
GWh % A$m %
New South Wales a
Macquarie Generation 28 030 14.56 867 13.24
Delta Electricity 23 286 12.10 876 13.37
Sithe Energies 1 016 0.53 44 0.68
National Power 1 064 0.55 38 0.57
Eraring Energy 14 456 7.51 792 12.09
Snowy (for NSW) 198 0.10 8 0.13
Snowy Hydro Limited 5 167 2.68 323 4.94
Victoria
AGL 296 0.15 51 0.77
Alinta 66 0.03 8 0.12
Energy Brix 1064 0.55 31 0.48
Hazelwood Power
Partnership 11 330 5.89 339 5.17
Loy Yang Power 17 086 8.88 494 7.54
IPM Eagle 8 772 4.56 254 3.88
TRUenergy 11 276 5.86 318 4.86
Ecogen Energy 484 0.25 48 0.74
Alcoa 1 355 0.70 41 0.63
Others 197 0.10 24 0.37
Queensland
Stanwell Corporation 10 703 5.56 279 4.26
Enertrade 142 0.07 5 0.08
CS Energy 14 599 7.59 399 6.10
Intergen 6 236 3.24 153 2.33
Tarong Energy 14 964 7.77 395 6.03
Transfield Holdings 2 205 1.15 70 1.06
Comalco/NRG 8 110 4.21 245 3.74
Others 75 0.04 9 0.14
continued...

energy in australia 2006 [ 51 ]


36 ] Principal generation businesses in Australia, 2005-06 continued

Share of Share of
mainland mainland
Generation generation Revenue revenue
GWh % A$m %
South Australia
International Power
(Synergen) 1 622 0.84 69 1.06
Origin Energy 477 0.25 24 0.37
NRG Flinders 4 521 2.35 158 2.41
TRUenergy 2 502 1.30 142 2.17
ATCO Power 1 167 0.61 44 0.68
Tasmania
Tasmanian Hydro 9 213 4.19 na na
Others 609 0.28 na na
Western Australia
Western Power Corporation 13 875 6.32 na na
Others 1 783 0.81 na na
Northern Territory
Power and Water Corporation 1 366 0.62 na na
Others 395 0.18 na na
a Including the Australian Capital Territory. b Not part of the ‘national electricity market’ at this
time; market share percentages referenced to figures in the ‘national electricity market’. na Not
available.

[ 52 ] energy in australia 2006


electricity

37 ] Proposed new major power stations and expansions in Australia


Power station Developer Capacity Plant type Location Year
MW
New South Wales
Bamarang Delta Electricity 400 gas turbine Bamarang 2008–09
Bega Wambo Power 120 CCGt Bega 2008–09
Ventures
Cobar Wambo Power 114 gas turbine Cobar 2008–09
Ventures
Leafs Gully AGL 800 gas turbine Appin,
stages 1, 2 near Camden 2009
Marulan stage I Delta Electricity 250–320 gas turbine Marulan 2009–10
Marulan stage II Delta Electricity 400–450 CCGt Marulan 2010–11
Munmorah Delta Electricity 300 gas turbine Doyalson 2009–10
Mt Piper upgrade Delta Electricity 1 680 steam Mt Piper 2008–13
& extension
Nowra Delta Electricity 400 CCGt Nowra 2010
Tallawarra TRUenergy 400 gas turbine Tallawarra 2008
Tomago Macquarie 360 gas turbine Tomago 2007
stages 1, 2 Generation
Tomago stage 3 Macquarie 270 steam Tomago –
Generation
Wagga Wagga Wambo Power 450 gas turbine Wagga Wagga 2007–08
Ventures
Victoria
Bogong AGL 130 hydro Bogong 2009
Laverton North Snowy Hydro 320 gas turbine Laverton North 2006
Loy Yang A Loy Yang Power 236 steam Latrobe Valley 2008
upgrade
Macarthur AGL 330 wind Macarthur –
Maryvale Paperlinx/Alinta 200 cogen Maryvale –
Mortlake Origin Energy 1 000 CCGt W. Victoria 2009
Portland (incl. Pacific Hydro 195 wind Portland 2007–08
Yambuk)
Yaloak Pacific Hydro 116 wind Ballan 2008
Queensland
BHP BHP (Peak Downs) 230 steam Bowen Basin –
(Peak Downs)
Braemar NewGen Power 450 gas turbine Braemar 2006–07
Kogan Creek CS Energy 750 steam Kogan North 2007–08
continued...

energy in australia 2006 [ 53 ]


37 ] Proposed new major power stations and expansions in Australia continued
Power station Developer Capacity Plant type Location Year
MW
MIM/Entergy MIM/Entergy 700 steam W. Surat Fields –
(Wandoan Energy)
Spring Gully Origin Energy 1 000 CCGt Durham Downs 2008–09
Stanwell Stanwell Corp 300 gas turbine Rockhampton 2007
Stanwell Stanwell/ 350 steam Rockhampton –
Macarthur Coal
Surat Surat Dawson 470 steam Surat Coal field –
Development
Townsville AGL 370 CCGt Townsville 2009
Townsville Stanwell 766 CCGt Townsville –
South Australia
Lake Bonney Babcock & Brown 159.5 wind turbine Lake Bonney –
stage II
Hallett expansion AGL 250 gas turbine Hallett –
Pelican Point International 250/300 gas turbine Pelican Point –
expansion Power expansion
Port Pirie International Power 230 gas turbine Port Pirie –
Quarantine Origin Energy 70/200 CCGt Torrens Island 2009
expansion
Western Australia
Bluewaters 1,2,3 Griffin Group 600 steam Collie 2008–12
Centauri 1 Eneabba Gas 168 gas turbine Dongara –
DESTEC Energy DESTEC Energy 660 gas turbine Dampier –
Kwinana NewGen Power 320 gas turbine Kwinana 2008
Perth Energy Plant Perth Energy Ltd 120 CCGt Kwinana 2006–07
Pinjarra Unit 2 Alinta 140 cogen Pinjarra 2006–07
Siemens AG Siemens AG 400 CCGt Pilbara –
Telfer Gold Mine Newcrest Mining 135 gas turbine Telfer Mine –
TransAlta TransAlta 470 CCGt Oakajee –
Wagerup Alinta Alinta 280 cogen Wagerup 2007–09
stages 1,2
Western Power Western Power 350/400 steam Collie 2006
Corporation
Western Power Western Power 120 gas turbine Perth 2006
peaking plant
Tasmania
Musselroe Roaring 40s 129 wind N/E Tasmania 2009
Source: ESAA, Electricity Gas Australia 2006.

[ 54 ] energy in australia 2006


heading

energy consumption

Australia is the world’s real energy prices and robust


eighteenth largest primary economic growth.
energy consumer, ranking ninth Australian primary energy
on a per person basis. consumption is predominantly
During the 1960s, energy use of petroleum and coal. However,
in Australia grew by 5.0 per cent a the share of natural gas in
year. This fell to 3.8 per cent a year Australian energy consumption
during the 1970s, largely as a result has increased in the past thirty
of the two major oil price shocks. years and this trend is projected
During the 1980s, economic to continue in the longer term.
recession and sharply rising energy Growth in Australian energy
prices resulted in growth falling to consumption is projected to
2.6 per cent a year. continue to moderate, with
During the 1990s, the rate of growth averaging 1.6 per cent
growth of energy consumption a year until 2030, including
fell to 2.3 per cent, despite falling medium term growth of 2.2

38 ] Energy consumption, by state, by fuel, 2004-05


Renew- Petroleum Natural
Black coal Brown coal ables products gas
PJ PJ PJ PJ PJ
New South Wales 788 0 42 551 145
Victoria 0 693 35 464 267
Queensland 625 0 107 462 113
Western Australia 129 0 13 276 377
South Australia 70 0 9 119 137
Tasmania 13 0 48 42 9
Northern Territory 0 0 0 57 25
Source: ABARE, Energy Statistics – Australian Energy.

energy in australia 2006 [ 55 ]


per cent a year to 2010. This improvements. Coal, oil and gas
reflects structural changes in the are projected to continue to meet
economy, energy conservation the bulk of Australia’s energy
measures and rising oil prices, needs, accounting for around
as well as a range of energy 94 per cent of primary energy
efficiency and conservation consumption in 2029-30.

39 ] Australian energy consumption, by fuel


2000-01 2001-02 2002-03 2003-04 2004-05
PJ PJ PJ PJ PJ
Consumption of fuels
Black coal 1 419 1 457 1 518 1 566 1 625
Brown coal 666 673 674 679 693
Coke 84 82 75 80 77
Coal byproducts 68 69 70 75 72
Brown coal briquettes 10 8 8 8 8
Wood, woodwaste 109 95 99 97 92
Bagasse 99 92 95 101 101
Refinery input 1 702 1 675 1 632 1 497 1 535
Petroleum products 1 741 1 760 1 781 1 882 1 971
Natural gas 962 976 1 024 1 059 1 074
Town gas 3.0 3.4 5.1 5.1 6.1
Solar energy 2.6 2.7 2.8 2.6 2.6
Total electricity 799 809 837 866 901
of which hydroelectricity 61 58 59 58 57
Production of derived fuels
Coke 95 93 97 103 103
Coal byproducts 62 62 61 64 62
Brown coal briquettes 7 7 5 4 3
Petroleum products a 1 591 1 534 1 493 1 396 1 448
Town gas 5 5 5 5 5
Thermal electricity 740 750 781 810 845
Total energy
consumption b 5 034 5 120 5 257 5 422 5 525
% % % % %
Energy consumption growth 1.3 1.7 2.7 3.2 1.9
GDP growth 1.9 3.8 3.2 4.1 2.7
a Production may exceed refinery input as some petroleum products are produced from
other petroleum products. b Total energy consumption is the total quantity (in energy units) of
primary and derived fuels consumed less the quantity of derived fuels produced. Totals may not
add due to rounding.
Source: ABARE, Energy Statistics – Australian Energy.

[ 56 ] energy in australia 2006


energy consumption

Energy intensity Primary energy consumption in


Australia, by fuel
Northern Territory Renewables
125 Gas
6000
Oil
100 Brown coal
4000 Black coal
Australia
75

Victoria 2000
50

index PJ
1989 1999 2009 2019 2029 1979 1989 1999 2009 2019 2029
-80 -90 -2000 -10 -20 -30

The aggregate energy Consumption of energy in


intensity of the Australian Australia is dominated by three
economy, measured as total sectors — electricity generation,
primary energy consumption per transport and manufacturing.
dollar of gross domestic product, Combined, these sectors have
is projected to decline by around accounted for almost 80 per cent
1.1 per cent a year until 2029-30. of total energy consumption
Australian industry, therefore, throughout the past 25 years,
is expected to be less reliant on albeit with their relative shares
the consumption of energy to changing significantly over time.
fuel economic growth.

40 ] Projected final energy consumption in Australia, by industry


2004-05 2009-10 2014-15 2019-20 2029-30
PJ PJ PJ PJ PJ
Agriculture 99 106 112 118 130
Mining 178 229 285 348 450
Manufacturing and
construction 1 164 1 239 1 353 1 425 1 572
Transport and storage 1 354 1 462 1 554 1 655 1 882
Commercial and serVices 243 283 322 361 450
Residential 432 476 514 552 631
Non energy fuel uses 69 72 75 77 81
Total 3 538 3 868 4 215 4 537 5 261
Source: ABARE, Australian Energy: National and State Projections.

energy in australia 2006 [ 57 ]


[ 58 ]
transformed
exports
Primary
exports
13 080 150

LPG 120 50

energy in australia 2006


methane 1650 740
refinery feedstock 1040
490
uranium oxide 5200 5200 340
commerce and
6500 240 services
electricity energy
black coal 8070 200 770 distribution 430 residential
other energy 450 resource
1440 transformation 1680 industries
700 1320 manufacturing
lignite
150
Australia’s energy flows, 2004-05 petajoules

1300 transport
renewables 260
70
1040 410
primary transformed
stocks imports imports

primary products net TPEC transformation net transformed available


supply primary export in out imports & stock energy (TFEC)
17 240 12 050 5 200 4 260 2 460 330 3 730

TPEC: Total Primary Energy Consumption. TFEC: Total Final Energy Consumption.
energy consumption

41 ] Carbon dioxode equivalent emissions for the energy sector, 2004


Total net
Total CO2-e national
emissions a emissions
Gg %
Energy industries 216 705 40.6
Manufacturing and construction 42 452 8.0
Transport 76 205 14.3
Other sectors 19 432 3.6
Other 1 357 0.3
Total fuel combustion activities 356 151 66.8
Fugitive emissions from fuels 31 049 5.8
Total energy sector 387 200 72.6
Total net emissions 533 500
a Includes CO2 (carbon dioxide), CH4 (methane), and N2O (nitrous oxide). Gg = gigagrams (109 grams).
Source: Australian Greenhouse Office, National Greenhouse Gas Inventory.

42 ] Major users of energy in Australia’s nonconversion sectors


Company Operation State
Alcan Gove Gove aluminium refining NT
ALCOA - World Alumina Australia Kwinana refinery WA
ALCOA - World Alumina Australia Portland aluminium smelting Vic
ALCOA - World Alumina Australia Wangerup refinery WA
BlueScope Steel Port Kembla steel products NSW
Comalco Boyne Island aluminium smelters Qld
Flinders Mining Operations Leigh Creek coalfield SA
OneSteel Whyalla blast furnace operations SA
Orica NSW Botany petrochemicals NSW
Queensland Alumina Alumina production (Gladstone) Qld
Pechiney Pacific Tomago aluminium smelter NSW
Woodside Petroleum Group North West Shelf joint venture WA
Worsley Alumina Alumina production (Boddington) WA

energy in australia 2006 [ 59 ]


43 ] Australia’s energy supply and disposal, 2004-05
Black Brown Coal by-
coal coal Coke products Briquettes Wood
PJ PJ PJ PJ PJ PJ
Supply
Primary indigenous 8 073.7 691.2 91.5
plus all imports
less all exports 6 594.6 0.0 0.0 0.0
less stock changes
and discrepancies –117.2 –2.0 25.5 –10.2 –5.0 0.0
Total domestic
availability 1 596.2 693.2 –25.5 10.2 5.0 91.5
less
Coke ovens 132.4 –102.8 –19.1
Briquetting 8.8 –3.0
Petroleum refining
Gas manufacturing
Public elec. generation 1 308.0 684.4 5.1 2.9 4.6
Other conversion a 67.9 –18.0
Fuel use in conversion
Final domestic
availability b 155.8 0.0 9.4 42.2 5.1 87.0

Disposal
Agriculture
Mining 7.4 0.3 1.4
Iron and steel 24.3 1.4 31.2
Chemical 2.3 0.9 8.6 1.7
Other industry 114.8 0.021 6.8 1.0 0.7 26.4
Construction
Road transport
Rail transport
Air transport
Water transport 5.6
Commercial 1.3 2.7 0.4
Residential 0.1 0.1 60.2
Lubricants, greases,
bitumen and solvents
Total final energy
consumption 155.8 0.0 9.4 42.2 5.1 87.0
continued...

[ 60 ] energy in australia 2006


energy consumption

43 ] Australia’s energy supply and disposal, 2004-05 continued


Crude oil LPG Refined Biofuels Natural
Bagasse and ORF products c gas
PJ PJ PJ PJ PJ PJ
Supply
Primary indigenous 101.1 1 039.2 122.6 9.1 1 650.4
plus all imports 1 042.2 13.9 394.8
less all exports 555.3 73.1 149.3 576.0
less stock changes
and discrepancies 0.0 –9.0 –11.3 –55.4 0.0 0.0
Total domestic
availability 101.1 1 535.1 74.7 300.9 9.1 1 074.4
less
Coke ovens 0.9
Briquetting
Petroleum refining
Gas manufacturing
Public elec. generation 0.8 0.0 0.1 24.6 6.7 276.5
Other conversion a –5.7 5.7
Fuel use in conversion
Final domestic
availability b 100.3 1.4 98.7 1713.3 2.5 737.8

Disposal
Agriculture 1.4 91.8 0.1
Mining 1.4 1.2 115.8 154.5
Iron and steel 0.4 1.6 25.3
Chemical 11.7 60.2 99.5
Other industry 100.3 0.0 8.5 85.9 2.0 274.4
Construction 0.2 24.2 3.1
Road transport 60.1 982.4 0.5 1.3
Rail transport 0.0 30.5 0.0
Air transport 178.4
Water transport 52.5
Commercial 4.0 18.2 44.0
Residential 11.1 2.8 135.4
Lubricants, greases,
bitumen and solvents 69.0
Total final energy
consumption 100.3 1.4 98.7 1 713.3 2.5 737.8
continued...

energy in australia 2006 [ 61 ]


43 ] Australia’s energy supply and disposal, 2004-05 continued
Town Hydro-
gas electricity Electricity Solar Uranium Total
Supply
Primary indigenous 56.2 2.6 5 206.6 17 044.4
plus all imports 1 450.9
less all exports 5 287.0 13 235.4
less stock changes
and discrepancies –0.6 0.0 0.0 0.0 –80.4 –265.6
Total domestic
availability 0.6 56.2 0.0 2.6 5 525.4
less
Coke ovens 0.1 11.5
Briquetting 0.4 6.2
Petroleum refining 6.6 31.1
Gas manufacturing –1.383 2.9
Public electricity generation 56.2 –878.3 1 491.5
Other conversion –4.053 –23.0 22.9
Fuel use in conversion 0.0 123.2 226.2
Final domestic
availability b 6.0 0.0 770.9 2.6 3 733.1

Disposal
Agriculture 6.4 99.6
Mining 69.6 351.6
Iron and steel 23.8 108.0
Chemical 4.9 14.9 202.4
Other industry 259.9 880.7
Construction 0.3 27.8
Road transport 1 044.4
Rail transport 7.8 38.4
Air transport 178.4
Water transport 58.2
Commercial 0.3 168.7 0.2 239.9
Residential 0.8 219.3 2.5 432.3
Lubricants, greases,
bitumen and solvents 69.0
Total final energy
consumption 6.0 0.0 770.9 2.6 3 733.1
a Includes return streams to refineries from the petrochemical industry, consumption of coke
in blast furnaces, blast furnace gas manufacture, electricity produced through cogeneration and
brown coal tar produced in char manufacture. Because it is not possible to separate the fuels
used to produce cogenerated electricity, they are included in the industry in which production
occurs. b After conversion sector use and losses. Equals total final energy consumption. The
[ 62 ] end use sector totals may differ from other published tables due to some conversion activities
occurring in those sectors. c Excludes wood and bagasse and includes recyclables.
energy consumption

44 ] Australian consumption of petroleum products


2001-02 2002-03 2003-04 2004-05 2005-06
ML ML ML ML ML
LPG a 4 009 4 204 4 168 3 936 4 167
Leaded 2 360
Unleaded 16 309 18 874 19 962 19 876 19 018
Avgas 97 90 90 91 86
Turbine fuel 4 603 4 250 4 329 4 730 5 359
Lighting kerosene 75 24 22 12 27
Power kerosene 0 0
Heating oil 50 48 46 34 26
ADO 14 188 13 888 14 461 15 185 15 804
IDF 18 17 15 19
Fuel oil 1 777 1 423 1 466 1 595 1 586
Lubes and greases 555 569 618 470 451
Bitumen 755 671 742 812 805
Other products b 2 436 4 186 5 012 5 031 5 213
Total marketable
products c 47 150 48 020 50 630 51 787 52 563
Refinery fuel (foe) d 2 221 2 180 1 828 1 716 1 695
Total 49 371 50 200 52 458 53 503 54 258
a Includes LPG used as petrochemical feedstock. b Includes other refined products, bitumen,
crude oil used as fuel and speciality feedstocks. c Some petroleum products are produced from
the conversion of other petroleum products. This element of double counting has been netted
off total marketable petroleum products. d Fuel oil equivalent.
Source: ABARE, Energy Statistics – Australian Energy; ABARE, Australian Energy: National and
State Projections; DITR, Australian Petroleum Statistics.

45 ] Final energy consumption in Australia, by fuel


2004-05 2009-10 2014-15 2019-20 2029-30
PJ PJ PJ PJ PJ
Black coal 162 182 188 189 189
LPG 96 113 123 137 175
Oil 1 640 1 774 1 880 2 010 2 318
Gas 625 754 875 948 1 101
Biomass 157 169 179 189 209
Electricity 781 872 967 1 060 1 265
Solar 3 3 3 4 5
Total 3 464 3 868 4 215 4 537 5 261
Source: ABARE, Australian Energy: National and State Projections.

energy in australia 2006 [ 63 ]


[ 64 ]
Oil and gas facilities Bonaparte Basin

5.6% DARWIN
Gas basin: producing
Browse Basin
Oil and gas basins

Oil basin: producing

Carnarvon Basin

energy in australia 2006


65%
Amadeus Basin
62%
0.2%
1.2% Adavale
Carnarvon
8% Basin n
Cooper/Eromanga
Basin 12%
Perth Basin Bowen/Surat Basin
BRISBANE
2.5% 0.2%
Australia’s oil and gas distribution facilities

0.9%
PERTH

ADELAIDE SYDNEY
Gas processing WOLLONGONG
PORT KEMBLA
Liquid processing (oil, condensate, LPG)
Production is shown as a percentage
Existing natural gas pipelines
of total production. MELBOURNE Gippsland Basin
Gas = 1650 PJ (excluding Timor gas) Natural gas pipelines under construction Otway Basin
0.4% Bass 20%
Liquids = 1039 PJ Proposed natural gas pipelines Basin
(Geoscience Australia 2004) 23%
Liquid pipelines
0 200 400 600 800 HOBART
Locations are indicative only
scale in kilometres
transport

transport and infrastructure

The transport sector accounts for current growth rate in average


39 per cent of final energy use fuel consumption has declined to
and 75 per cent of liquid fuels 1 per cent a year, with air travel
used (including LPG) in Australia. affected by high fuel prices and
Reflecting strong growth in road strong competition from foreign
and air transport, energy use in carriers. Over the next 25 years,
the transport sector is projected fuel prices are assumed to
to grow by around 1.5 per cent a stabilise and air travel is projected
year over the long term. to grow moderately strongly.
The fastest growing transport Road transport is the largest
mode in Australia is air transport. user of energy in the transport
During the 1990s, growth in sector. Fuel consumption
average annual consumption of growth in road transport has
aviation fuels doubled to almost eased steadily over the past
6 per cent, following an average thirty years, from almost 5 per
of 3 per cent in the 1980s. Much cent to less than 2 per cent a
of this growth was driven by year. Assuming average long
international travel. However, the term fuel prices remain around

46 ] Projected energy consumption in the transport sector a


2004-05 2009-10 z 2014-15 z 2019-20 z 2029-30 z
PJ PJ PJ PJ PJ
Road transport 1 043 1 103 1 152 1 204 1 319
Railway transport 39 40 41 41 43
Water transport 58 60 62 64 66
Air transport 178 219 261 306 412
Other 35 38 38 41 42
Total 1 354 1 462 1 554 1 655 1 882
a Net energy consumption (defined as total fuel input less energy produced). z ABARE projec-
tion. Sources: ABARE, Energy Statistics - Australian Energy; Australian Energy: National and
State Projections. energy in australia 2006 [ 65 ]
Passenger vehicle fuel efficiency in Australia, 2003-04
passenger kilometres travelled using 1 GJ of energy
Buses 725
Heavy rail 629
Motorcycles 465
International aviation 685
General domestic aviation 437
Passenger cars 348
Light rail 300
Inland ferries 220
0 100 200 300 400 500 600 700
Source: Apelbaum Consulting passenger km/GJ

2005-06 levels, road transport using around 60 per cent of the


fuel consumption is projected sector’s total.
to increase by an average 1.2 The phasing out of leaded
per cent a year over the next automotive gasoline, begun in
25 years. Passenger cars and 1986 using pricing differential
wagons have dominated road incentives, was effectively
fuel consumption over the completed in 2001. Over the
past 30 years, consistently same period the consumption

47 ] Energy use in Australian transport sectors, by fuel type, 2004


Sea Air Pipe-
domestic international domestic international Road Rail lines
PJ PJ PJ PJ PJ PJ PJ

Black coal 5.6


Aviation
– gasoline 3.0
– turbine fuel 77.2 98.2
LPG 60.1
ADO 3.3 6.6 309.9 30.5 4.7
Fuel oil 7.8 34.8
Natural gas 0.1 1.3 15.1
Electricity 7.8 1.2
Auto gasoline
– leaded 16.9
– unleaded 656.1
Total 16.8 41.4 80.2 98.2 1 044.4 38.3 21.0
Source: ABARE, Australian Energy Statistics.

[ 66 ] energy in australia 2006


transport

There are around 21 000


Australian road fuel consumption,
by type of vehicle, 2004-05 kilometres of high pressure
transmission pipelines used in
Passenger vehicles
Rigid trucks 8% 61% long distance transporting of
Articulated trucks 12% natural gas plus around 75 000
Other trucks 0.2%
kilometres of low pressure
pipelines distributing gas at
Light commercial the retail level. Natural gas
vehicles 17%
is used by around 3.4 million
Motorcycle 0.3% households and 105 000
Buses 2.2%
commercial and industrial
Source: Apelbaum Consulting Group, Australian Transport Facts, 2005 enterprises in Australia.
of automotive LPG, free of fuel
excise tax, grew by an average 48 ] Loadings for major
petroleum ports, 2004-05
of 13 per cent a year. LPG
suffered a temporary decline in Mt
demand when a phasing in of Crude oil and condensate
taxes on excise exempt fuels Westernport, Vic 2.45
was announced but demand Dampier, WA a 3.60
recovered with the reintroduction Refined oil products
of subsidies on LPG conversions Sydney, NSW 0.71
in the Australian Government’s Brisbane, Qld 2.28
LPG Vehicle Scheme to promote Geelong, Vic 1.90
the use of cleaner burning fuels. Melbourne, Vic 0.25
Australia has eleven major Fremantle, WA 2.46
deepwater ports that have facilities Refined petroleum gases b
to export petroleum liquids. Sydney, NSW 0.07
Dampier in Western Australia is Liquefied petroleum gas c
by far Australia’s largest crude oil Dampier, WA 1.34
and condensate exporting centre, Port Bonython SA 0.50
accounting for 32 per cent of all Westernport, Vic 0.51
Australian liquid petroleum exports Fremantle, WA 0.20
(excluding LNG) in 2004-05. Liquefied natural gas
Australian exports of crude oil Dampier, WA 11.28
and condensate are increasingly a Condensate only. b Includes refined
sourced from the west coast, LPG, butane and other refined gases. c
Naturally occurring LPG.
while exports of refined product Sources: Association of Australian Ports
are largely sourced from the east and Marine Authorities; Dampier Port
Authority; Santos.
coast.
energy in australia 2006 [ 67 ]
Freight fuel efficiency in Australia
kilometres travelled per thousand tonnes of cargo using 1 GJ of energy
Domestic shipping
H&R freight rail
Non-urban gas and oil pipelines
Articulated trucks
Rigid trucks
Light commercial vehicles
0 1 2 3 4 5 6
Source: Apelbaum Consulting kt km/GJ

49 ] Major gas transport pipelines in Australia


Location Year built Owner Length Diameter
km mm
Ballera to Mount Isa 1998 Australian Pipeline Trust 840 324
Ballera to Wallumbilla 1996 Epic Energy 756 406
Bell Bay to Hobart 2002 Duke Energy 226 200
Brooklyn to Ballarat/Bendigo 1972 GasNet 309 324
Dampier to Bunbury 1984 Epic Energy 1 547 660
Dongarra to Perth/Pinjarra 1971 CMS Gas 415 356
Horsley Park to Newcastle 1982 AGL Gas Networks 214 508
Inoa Field to Geelong 1999 GasNet 144 500
Karratha to Port Hedland 1995 Epic Energy 213 457
Longford to Bell Bay 2002 Duke Energy 345 350
Longford to Dandenong 1969 GasNet 173 762
Longford to Horsley Park 2000 Duke Energy 765 450
Marsden to Dubbo 1998 APT 255 219
Moomba to Adelaide 1969 Epic energy 781 559
Moomba to Wilton 1976 Australian Pipeline Trust 1 300 864
Morwell to Dandenong 1956 GasNet 135 457
Palm Valley to Mataranka/
Darwin 1997 Australian Pipeline Trust 1 512 356
Port Hedland to Burrup 1998 Epic Energy 24 600
Roma to Brisbane 1969 Australian Pipeline Trust 440 406
Roma to Gladstone 1989 Duke Energy 532 324
Wodonga to Wagga Wagga 1998 APT/GasNet 151 457
Wollert to Wodonga 1977 GasNet 269 324
Yarraloola to Newman/ 1996 Goldfields
Kalgoorlie Gas Transmission 1 378 406
Source: www.esaa.asn..au

[ 68 ] energy in australia 2006


renewable energy

Renewable energy in Australia This is a reflection of the


accounts for less than 5 per cent limited availability of suitable
of total energy consumption at locations for the expansion of
present. large grid based hydroelectricity
The production of renewable generation.
energy is dominated by wood The generation of electricity
and woodwaste, bagasse (a from all renewable sources is
waste product from sugar projected to grow by 3.7 per
refining) and hydroelectricity cent a year to 2030. Most of
(predominantly from Tasmania this increase is expected to be
and the Snowy Mountains),
which together accounted for 95 50 ] Renewable generation under the
per cent of renewable energy MRET scheme a
production in 2004-05. GWh %
Biofuels (which include landfill
Bagasse cogeneration 421 10.6
and sewage gas) and solar energy Black liquor 125 3.1
accounted for the remainder of Hydro 441 11.1
renewable energy production. Landfill gas 461 11.6
Most solar energy is used for Sewage gas 40 1.01
residential water heating and this Photovoltaic 1 0.03
represents less than 1 per cent of Solar water heater 996 25.0
final energy consumption in the Wind 1 316 33.1
residential sector. Wood waste 139 3.5
Other b 38 0.96
Over the next 25 years, total
hydroelectricity generation Total 3 978 100
is projected to grow by only a As at 26 October 2006. Includes municipal solid
waste combustion; food and agricultural wet
0.3 per cent a year, reaching waste. MRET = Mandatory Renewable Energy
around 17 TWh by 2029-30. Target.
Source: Office of the Renewable Energy Regulator

energy in australia 2006 [ 69 ]


51 ] Capacity of renewable electricity generation in Australia, 2004-05
Wood Other Geo-
Biogas Bagasse waste biomass Hydro Solar Wind thermal
MW MW MW MW MW kW MW kW
NSW 61 16 42 6 4 269 29 17
Vic 59 34 549 1 134
Qld 16 377 15 4 660 13
SA 22 40 4 41 388 3
WA 25 6 6 0 32 120
Tas 0 2 281 68
NT 1 0 1
Aust 185 399 103 44 7 795 72 740 3
Source: Geoscience Australia.

52 ] Australian production of renewable energy


2000-01 2001-02 2002-03 2003-04 2004-05
PJ PJ PJ PJ PJ
Bagasse 99 92 95 97 101
Biofuels a 8.8 10.1 10.7 10.6 9.1
Hydroelectricity 61 58 59 58 56
Solar 2.6 2.7 2.8 2.6 2.6
Wind 0.2 0.6 1.0 1.6 4.5
Wood and woodwaste 109 95 99 97 92
a Includes landfill and sewage gas.
Source: ABARE, Energy Statistics – Australian Energy Statistics; Office of Renewable Energy.

53 ] Projected Australian renewable electricity generation, by fuel


2004-05 2009-10 2014-15 2019-20 2029-30
GWh GWh GWh GWh GWh
Hydroelectricity 16 236 17 031 17 363 17 748 18 328
Wind 1 255 3 553 3 770 4 041 6 781
Biomass 950 1 683 2 603 4 065 5 469
Biogas 293 1 714 1880 1 941 2 109
Total 18 734 23 981 25 616 27 794 32 687
Source: ABARE, Australian Energy: National and State Projections.

[ 70 ] energy in australia 2006


renewables

from wind, biogas and biomass requires large volumes of


(mainly bagasse and woodwaste). relatively homogeneous,
Growth in wind power is forecast high heat production granite
to be 6.4 per cent and biogas 6.9 with potential for enhanced
per cent a year, but both are from permeability and with an
a small base. overlying layer of sediment of
A recent addition to optimal thickness for insulation
renewable energy prospects in but without making the deep
Australia is the development of well drilling excessively costly.
‘hot dry rock’ technology. This A range of policy measures
technology is being employed has been introduced in Australia
by Petratherm, Green Rock to support the uptake and
and Geodynamics Limited, development of all renewable
particularly in the Cooper Basin energy. These measures include
of South Australia. the Australian Government’s
Hot dry rock technology Mandatory Renewable Energy
is similar to conventional Target (MRET) in which
geothermal energy in that it electricity retailers and other
uses the heat emanating from large buyers are required to
inside the earth. However, where purchase renewable energy
conventional geothermal energy certificates (RECs) from
relies on steam that is vented accredited renewable energy
naturally near volcanic centres, suppliers. This is designed to
the hot dry rock process requires create a guaranteed market for
water to be pumped deep below renewable energy products.
the earth’s surface. Energy suppliers are able to
One of the significant features create certificates based on their
of hot dry rock generation renewable energy contribution.
technologies is that it has Liable retailers and other buyers
the potential to provide base must purchase enough of these
load power unrestrained by certificates to meet their individual
the environmental conditions liability, either directly from
that inhibit renewable energy accredited suppliers or by trading
technologies at the surface. One certificates with other parties.
drawback is that geologically RECs are traded separately from
suitable areas are not common, the physical energy markets to
although Australia’s resources ensure there is no interference
are unique. The technology with those markets.

energy in australia 2006 [ 71 ]


The number of RECs that The limiting factors in
liable parties must accumulate generating renewable energy
is based on their rank in the are geography and climate.
national electricity market Hydroelectricity, in particular, is
and these are surrendered on restricted in Australia because
14 February each year. These of the limitations of hydrology
certificates, therefore, are a and environmental conservation.
form of ‘currency’ used to Adequate rainfall is restricted
demonstrate compliance with to a narrow coastal band in
the requirements of the MRET Australia, where conservation
scheme. restrictions often apply.

54 ] Renewable power generators in Australia, 2005


State Owner Capacity
kW
Bagasse
Pioneer 2 Qld CSR Sugar Mills 63 000
InVicta Qld Haughton Sugar Company 50 000
Rocky Point Qld National Power/
Babcock and Brown JV 30 000
Tully Qld Independent Sugar North Ltd 21 400
Plane Creek Qld CSR Sugar Mills 20 000
Marian Qld Mackay Sugar Mills 18 000
Proserpine Qld Independent Sugar North Ltd 16 000
Farleigh Qld Mackay Sugar Mills 13 000
Inkerman Qld CSR Sugar Mills 12 000
Victoria Qld CSR Sugar Mills 11 800
South Johnstone Qld Bundaberg Sugar Ltd 11 500
Mossman Qld Mossman Central Mill Co Ltd 11 000
Isis Qld Isis Central Sugar Mill Co Ltd 10 700
Mulgrave Qld Independent Sugar North Ltd 10 500
Racecourse Qld Mackay Sugar Mills 10 500
Pleystowe Qld Mackay Sugar Mills 10 100
Other operations (14) 77 450
Total 396 950
continued...

[ 72 ] energy in australia 2006


resources

54 ] Renewable power generators in Australia, 2005 continued


State Owner Capacity
kW
Hydroelectricity
Tumut 3 NSW Snowy Hydro Ltd 1 500 000
Murray 1 NSW Snowy Hydro Ltd 950 000
Murray 2 NSW Snowy Hydro Ltd 550 000
Wivenhoe Dam Qld Tarong Energy 500 000
Gordon Tas Hydro Tasmania 432 000
Tumut 1 NSW Snowy Hydro Ltd 330 000
Poatina Tas Hydro Tasmania 300 000
Tumut 2 NSW Snowy Hydro Ltd 286 000
Reece Tas Hydro Tasmania 231 200
Kangaroo Valley NSW Eraring Energy 160 000
Dartmouth Vic Southern Hydro 150 000
John Butters Tas Hydro Tasmania 144 000
Eildon Vic Southern Hydro (owned by AGL) 136 000
Tungatinah Tas Hydro Tasmania 125 000
McKay Creek Vic Southern Hydro (owned by AGL) 120 000
Other operations (89) 1 889 225
Total 7 803 425
Solar
PV in Australia SA Privately and Publicly in Australia 40 000
Liddell NSW Solar Heat and Power Pty Ltd 25 000
Broken Hill NSW Australian Inland Energy 1 000
NewinGton NSW Pacific Power 665
Other operations (164) 5 498
Total 72 163
Ocean (wave)
Portland Vic Ocean Power Technologies/ 20
Powercor Aust.
Port Kembla NSW Energetech Australia 500
Rous Head WA Sea Power Pacific 100
Total 620
continued...

energy in australia 2006 [ 73 ]


54 ] Renewable power generators in Australia, 2005 continued
State Owner Capacity
kW
Biogas
Woodlawn NSW Collex 25 000
Clayton Vic Energy Developments 10 000
Lucas Heights II NSW Energy Developments 9 000
Sunshine Vic ABB 7 500
Carrum Downs Vic Melbourne Water 7 500
Broadmeadows Vic Energy Development 7 000
Springvale Vic Energy Developments 7 000
Werribee 2 Vic Melbourne Water 7 000
South Cardup WA Landfill Management Services 6 000
Wingfield I SA Energy Developments 5 000
Belrose NSW Energy Developments 4 000
Berwick Vic Energy Developments 4 000
Canningvale WA Landfill Gas and Power 4 000
Other operations (54) 75 890
Total 178 890
Geothermal
Innamincka SA Geodynamics 3 000
Birdsville Qld Ergon Energy 80
Mulka Station SA Mulka Station 20
Total 3 100
Biomass
Maryvale Vic Australian Paper 24 000
Morwell Vic Green Pacific Energy 21 000
Hazelwood Vic International Power Hazelwood 10 000
Eastern Creek UR-3R NSW Global Renewables 3 000
Whytes Gully NSW Energy Developments 2 500
Brisbane Qld Visy Paper 2 000
Gympie Qld Ergon Energy 1 500
Upper Chittering WA Rufftuff 10
Total 64 010
Woodwaste
Tantanoola SA Babcock & Brown/National Power 30 000
Tumut NSW Visy Paper 17 000
Mount Gambier SA Carter Holt Harvey 10 000
continued...

[ 74 ] energy in australia 2006


renewables

54 ] Renewable power generators in Australia, 2005 continued


State Owner Capacity
kW
Woodwaste
Gladstone A and B Qld Comalco/NRG 10 000
Bayswater NSW Macquarie Generation 5 000
Liddell NSW Macquarie Generation 5 000
Mount Piper NSW Delta Electricity 5 000
Muja WA Verve Energy 5 000
Stapylton Qld Green Pacific Energy 5 000
Vales Point B NSW Delta Electricity 5 000
Wallerawang C NSW Delta Electricity 5 000
Narrogin WA Verve Energy/ Oil Mallee Co/Enecon 1 000
Total 103 000
Wind
Hallett (AGL) SA AGL 95 000
Wattle Point SA Southern Hydro/Wind
Farm Developments 91 000
Walkaway – Alinta WA Alinta/Renewable
Power Ventures P/L 90 000
Lake Bonney SA Babcock and Brown 80 500
Emu Downs WA Stanwell Corporation &
Griffin Energy 79 200
Mount Millar SA Tarong Energy 70 000
Cathedral Rocks SA Hydro Tasmania/EHN(Spain) 66 000
Woolnorth Tas Hydro Tasmania 64 750
Challicum Hills Vic Pacific Hydro 52 500
Lake Bonney SA Babcock & Brown 80 500
Emu Downs WA Stanwell Corp. & Griffin Energy 79 200
Mount Millar SA Tarong Energy 70 000
Cathedral Rocks SA Hydro Tasmania/EHN(Spain) 66 000
Woolnorth Tas Hydro Tasmania 64 750
Challicum Hills Vic Pacific Hydro 52 500
Canunda SA International Power/
Wind Prospect P/L 46 000
Starfish Hill SA Tarong Energy 34 000
Yambuk Vic Pacific Hydro Ltd 30 000
Wonthaggi Vic Wind Power P/L 12 000
Other operations (65) 7 477
Total 818 427
Source: Geoscience Australia

energy in australia 2006 [ 75 ]


[ 76 ]
Renewable power stations

Bagasse
Landfill methane
Solar
Water
Wind

energy in australia 2006


Sewage methane
other
Australian Renewable power stations

Source: Australian Greenhouse Office


conversion factors

The factors listed in the following kilopascals). The values are the
tables are to be used when gross energy content of the
converting individual types of fuel — that is, the total amount
fuel from volume or weight to of heat that will be released by
energy equivalence, or vice combustion.
versa. The values are indicative The usable energy content
only, because the quality of any of uranium metal (U) is 0.56
fuel varies with such factors petajoules per tonne, and that
as location, air pressure and of uranium oxide (U3O8 ) is 0.47
Values given here apply at a petajoules per tonne. The oxide
temperature of 15º Celsius and contains 84.8 per cent of the
pressure of 1 atmosphere (101.3 metal by weight.

55 ] Energy content of gaseous fuels in Australia

Energy content
MJ/m3
Natural gas (sales quality)
Victoria 38.8
Queensland 39.5
Western Australia 41.5
South Australia, New South Wales 38.3
Northern Territory
3
40.5
Ethane (average) 57.5
Town gas
– synthetic natural gas 39.0
– other town gas 25.0
Coke oven gas 18.1
Blast furnace gas 4.0
Sources: DITR; BHP Billiton.

energy in australia 2006 [ 77 ]


56 ] Energy content of liquid fuels

Specific
Volume volume Weight
MJ/L L/t GJ/t
LPG
– propane 25.5 1 960 49.6
– butane 28.1 1 760 49.1
– mixture 25.7 1 890 49.6
– naturally occuring (average) 26.5 1 866 49.4
Aviation gasoline 33.1 1 412 46.8
Automotive gasoline 34.2 1 360 46.4
Power kerosene 37.5 1 230 46.1
Aviation turbine fuel 36.8 1 261 46.4
Lighting kerosene 36.6 1 270 46.5
Heating oil 37.3 1 238 46.2
Automotive diesel oil 38.6 1 182 45.6
Industrial diesel fuel 39.6 1 135 44.9
Fuel oil
– low sulfur 39.7 1 110 44.1
– high sulfur 40.8 1 050 42.9
Refinery fuel (fuel oil equivalent) 40.8 1 050 42.9
Naphtha 31.4 1 534 48.1
Lubricants and greases 38.8 1 120 43.4
Bitumen 44.0 981 42.7
Solvents 34.4 1 229 44.0
Waxes 38.8 1 180 45.8
Crude oil and other refinery feedstocks
– indigenous (average) 37.0 1 250 46.3
– imports (average) 38.7 1 160 44.9
Orimulsion 28.0
Ethanol 23.4 1 266 29.6
Methanol 15.6 1 263 19.7
Tallow 35.0
Liquefied natural gas (north west shelf) 25 2 174 54.4

[ 78 ] energy in australia 2006


conversion factors

57 ] Energy content of solid fuels in Australia

Energy content Energy content


GJ/t GJ/t
Black coal Black coal
New South Wales Western Australia
Exports Steaming coal 19.7
– coking coal 29.0 Tasmania
– steaming coal 27.0 Steaming coal 22.8
Electricity generation 23.4
Steelworks 30.0 Lignite
Washed steaming coal 27.0 Victorian brown coal 9.8
Unwashed steaming coal 23.9 South australia 15.2
Brown coal briquettes 22.1
Queensland
Exports
Coking coal 30.0 Other
Steaming coal 27.0 Coke 27.0
Electricity generation 23.4 Wood (dry) 16.2
Other 23.0 Bagasse 9.6

energy in australia 2006 [ 79 ]


Average annual daily maximum temperature in Australia
Based on a 30-year climatology (1961 to 1990)
30

33 30
Degrees celsius 33
39 33
36 33 33 27
33
30
27 30
27 27
24 33
33 30
21
18 30
15
12
24
9 27
27
6 27
21
3 24 24
0 24
24
–3 21
21
21 18

21
18 15
18 18

15
15
200 0 200 400 600 800 km 12

Annual rainfall in Australia


Based on a 30-year climatology (1961 to 1990)

Millimetres 1600

1200
3200
1000
2400 800
3200
2400
2000
2000 600
500
1600 300 400

1200 200

1000
800
200
600
500 600
300

400 400
800 500

300 1000
1200
200
200 0 200 400 600 800 km

Source: Bureau of Meteorology

[ 80 ] energy in australia 2006