NORTH WEST SHELF GAS: EFFECT ON WESTERN AUSTRALIA'S FUEL ECONOMY

Abstract

Despite its small population, Western Australia is a big energy user, as a result of large mining and mineral processing projects and long distances involved in travel. The per capita use of primary energy in Western Australia in 1975/76 was 226 gigajoules, compared with 204 gigajoules per head for Australia as a whole.Total primary energy demand in Western Australia is expected to increase by 77 per cent from 292 × 1015 joules in 1977 to 517 × 1015 joules in 1987.Fuels used directly for mining and mineral processing operations dominate energy demand. Total amounts of mining and mineral processing fuels (including input to power stations which form part of mining projects) represented 39 per cent of total primary energy demand in 1977, and are expected to increase to 43 per cent in 1986/87.Residential, commercial and industrial reticulated gas represents only a small part of the State's energy needs. However, it is an important component in both social and economic terms. At the present time, demand for gas for industrial purposes is in excess of supply and sales to industrial customers are restricted. The demand for gas will continue to exceed supply from the small Dongara Field until North West Shelf gas becomes available in 1984.In 1977 Western Australia depended on oil for 70 per cent of its primary energy needs. This proportion is expected to decline to 44 per cent in 1987. Over the same time period the share of the total market supplied by gas is expected to increase from 11 per cent to 29 per cent.The suppliers of petroleum products in Western Australia, and particularly the Kwinana refinery, will need to prepare for a major change in product demand after the proposed introduction of North West Shelf gas in 1984. Requirements for heavy furnace oil will decline, whilst it is anticipated that the demand for the lighter distillate and motor spirit will continue to increase.