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The Plan for Accelerating Exploration (PACE) Gas grant program aims to increase the supply of gas into South Australia’s energy market to increase gas supplies and increase competition between gas suppliers.

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PACE Gas Round 1 Grant Program - Results including successful grant applications can be viewed here.

Applications have now opened for PACE Gas Round 2 Grants, details can be viewed here

Key dates and deadlines

Round 1

 24 October 2016 Public call for PACE Gas project proposals
4pm CDT 16 December 2016 Project Proposal lodgement deadline
March 2017 Announcement of successful proposals
March/April 2017 Funding Deeds issued and executed. Funding can be distributed from this date

Round 2

17 March 2017 Public call for second round PACE Gas project proposals
4pm CST 1 August 2017        Project Proposal lodgement deadline
In October 2017 Announcement of successful proposals

The second round of PACE Gas grants, announced by the South Australian Government on 17 March 2017, offers an additional $24 million to accelerate the most meritorious investments in gas projects in South Australia. Support will be given to projects within South Australian gas fields that have the greatest likelihood of securing new and significant gas supplies to South Australian customers by year-end 2020. Projects that can credibly deliver gas soonest to markets will be highly rated. Eligible projects potentially include, but are not necessarily limited to:

  • the accelerated deployment of new technologies to lift existing and new well productivity
  • new gas exploration wells in proximity to existing gas infrastructure
  • new gas processing, storage and transport facilities.

Applicants must nominate how South Australian gas users (firstly electricity generators, followed by industry and then retail consumers) will be provided with a first right to agree commercial terms to contract gas resulting from grant-supported projects. Proposals that maximise energy efficiency (http://www.aemo.com.au/Electricity/National-Electricity-Market-NEM/Planning-and-forecasting/National-Transmission-Network-Development-Plan/NTNDP-database) and competition between gas-fired electricity producers in South Australia (http://www.aemo.com.au/Electricity/National-Electricity-Market-NEM/Planning-and-forecasting/Generation-information) will be highly rated.

The lead targeted outcome will be maximising gas supplies incremental to pre-existing forecast gas production profiles from South Australian gas fields for use in South Australia. Successful outcomes in accelerating significant incremental gas supplies in an otherwise tighter market should also reduce the risk of both gas supply shortfalls and severe price spikes related to tight supplies during peak demand.

The deadline for lodgement of grant applications has been bought forward, proposals must now be submitted no later than 4.00 pm Tuesday 1 August 2017.

Grant criteria

PACE Gas projects must be developed within South Australia under a current licence and must demonstrate how they will increase the gas available for South Australian gas users.

Download:

South Australia PACE Gas Grant Program - closed

South Australia PACE Gas Round 2 Grant Program (updated)

Hardcopies of completed project proposals must be placed in an envelope marked “Confidential – Contains PACE Gas Round 2 Proposal

The following graphs will assist PACE Gas Grant applicants in drawing conclusions on how any plans to sell gas to South Australian gas consumers can foster:

  • thermal energy efficiency; and
  • competition between gas fired electricity generators in South Australia.

Thermal efficiency by % higher heating value (HHV) of South Australian gas-fired power stations.
Source: AEMO 2015 National Transmission Network Development Plan (NTNDP) Database, "Fuel and Technology  Cost Review - Data (ACIL Allen) (12 June 2014)".
http://www.aemo.com.au/Electricity/National-Electricity-Market-NEM/Planning-and-forecasting/National-Transmission-Network-Development-Plan/NTNDP-database
* Synergen Power is jointly owned by ENGIE (72%) and Mitsui & Co. (28%).

2015/16 scheduled generation percentage market share of South Australian gas-fired power stations.
Source: AEMO "2016 August, South Australian Historical Market Information Report (SAHMIR)".
http://www.aemo.com.au/Electricity/National-Electricity-Market-NEM/Planning-and-forecasting/-/media/F1314EB879E544708E29A5C04CF0111E.ashx

2015/16 scheduled generation percentage market share of South Australian gas-fired power station owners.
Source: AEMO General Information Page "South Australia - 2016 August (2016 NEM ESOO)".
http://www.aemo.com.au/Electricity/National-Electricity-Market-NEM/Planning-and-forecasting/Generation-information
* Joint Venture partner - Pelican Point Power Station (72% ENGIE, 28% Mitsui & Co.), Osborne Power Station (50% Origin Energy, 50% ATCO).
** Synergen Power is jointly owned by ENGIE (72%) and Mitsui & Co. (28%).

The AEMO data can be downloaded in an Excel spreadsheet here.

For more information, contact:

All comments, inquiries and applications for PACE Gas Round 2 grants may be addressed to:

Elinor Alexander
Director Petroleum and Exploration
Energy Resources Division
The Department of State Development
Level 7, 101 Grenfell Street
Adelaide SA 5000

Phone: +61 8 8463 3211
Elinor.Alexander@sa.gov.au