Cold snap sparks warning of potential gas shortfall for months on east coast

Australia's south-east is facing a potential gas supply shortage during the coldest months of the year, in part due to production shortfalls at a plant in Victoria.

The Australian Energy Market Operator (AEMO) said yesterday there is a risk that there might not be enough gas supply to meet demand until the end of September in NSW, Victoria, South Australia, the ACT and Tasmania.

One of the reasons for the potential shortfall is significant production constraints at the Langford Gas Plant, where offshore maintenance is due to continue until at least the start of July.

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But also contributing to the problem is high demand for gas as the east coast shivers through a frigid cold snap.

Sydney woke to its coldest morning in about a year yesterday, while today the mercury hit six-year lows in both Victoria – -8.3 degrees at Mount Hotham – and NSW – -3.8 degrees in Khancoban.

That is being compounded by lower-than-expected wind power supply, which in turn has increased demand for gas.

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Both the federal government and the opposition plan to increase gas production in the coming years – the government up to and beyond 2050 to supplement and firm up renewables, and the Coalition to meet energy shortfalls while its proposed nuclear power plants are developed.

Speaking to the ABC this morning, Prime Minister Anthony Albanese said more gas production was needed to meet the shortfall.

"We'll work through those issues with AEMO… we need more gas supply," he said.

Australia currently exports the vast majority of its natural gas, with about 75 per cent going overseas, according to the latest government figures released last September.