What is natural gas?
Natural gas helps power a lot of homes and businesses across Australia. Here we try and explain a bit more about what it is, and how Powershop provides gas to our customers.
How gas powers the world
Natural gas is a cleaner energy alternative as the world transitions from greater reliance on other fossil fuels to a future where renewable sources are the primary energy provider for global demand. As the global population grows, there is increased energy demand and gas helps to bridge that gap. It is anticipated that about 40% of increased global energy needs between now and 2040 will be met by natural gas.1
Where do we get natural gas from?
Natural gas is a fossil fuel, which is made up mainly of methane, and found underground in rock formations or associated with other hydrocarbon sources like oilfields. Natural gas is formed over millions of years as organic matter composes and gets buried under layers of rock and sediment.
The process of gas forming begins as plant and animal remains accumulate in swampy environments or at sea, and overtime these get buried under rock and sediment. As the rock and sediment stacks up it causes heat and pressure that converts the plant and animal remains into hydrocarbons.
These hydrocarbons are a fuel source in themselves, that is liquid oil. Over time though, more heat and more pressure, further changes that oil into natural gas.
This is why natural gas deposits are often found when oil is found, although sometimes there are gas fields that are found without any oil. Gas get extracted by drilling wells into these fields, usually called reservoirs.
Recent technologies that have emerged like horizontal drilling and hydraulic fracturing, mean that sources of natural gas that could not be reached in the past are now accessible.
How natural gas helps the transition to lower emissions.
Natural gas is often spoken about as a cleaner alternative to energy sources like coal and oil which are more carbon intensive. In energy production, natural gas creates about 50% less carbon dioxide (CO2) than coal and 30% less than oil.2 This reduced carbon footprint Means that natural gas is a super helpful tool in limiting the impacts of climate change and reducing greenhouse gas emissions.
Another important factor to consider is that natural gas plants are more efficient than coal-fired power plants. They can shut down and start up more quickly and output energy at consistent levels. Given that power from wind and solar sources can be intermittent, natural gas has the flexibility to complement these. It means that when renewable energy is not available, natural gas plants are able to increase their production and make sure that there is a stable energy supply.
Natural gas plants have lower emissions and output less pollutants like sulphur, dioxide and nitrogen oxide that cause smog and impact air quality. It is for these reasons, that natural gas is a less harmful option for air quality when compared to traditional fossil fuels.
While natural gas is cleaner than other fossil fuels when considering air quality, it still has its challenges. Methane is the main component of natural gas and is a more potent greenhouse gas than carbon dioxide. For this reason, Shell who owns Powershop, are particularly proactive in managing leaks and emissions3 while providing a reliable supply of natural gas.
Looking after leaks and approving efficiency in how natural gas is delivered is a crucial part of making sure that natural gas can help the world transition to a cleaner energy system.
Power House Gas
Receive $50 credit on your first gas bill*
New and moving customers receive $50 credit on their first gas bill.
Note: To be a gas customer, you also need to be an electricity customer with Powershop.
The gas credit offer is available to VIC and NSW customers only.
How is the cost of gas calculated?
Wondering about the cost of gas? When Powershop provides natural gas, the cost is influenced by a variety of factors. Some of these include extraction as well as processing and then transporting gas and its distribution. Here is a bit of a breakdown on how these things get calculated.
The amount you pay for natural gas purchased through Powershop is determined through a mix of these fixed and variable factors. At Powershop we offer a gas plan which adjusts overtime in line with these contributing factors. There are also a combination of factors for electricity prices that you can read about if you'd like to understand more about energy rates and prices.
Can I sign up to just gas with Powershop ?
At the moment, Powershop is only able to offer gas to customers who also get their electricity from Powershop . Depending on your distribution network you may or may not be able to connect to gas with Powershop . When you compare energy plans, putting in your address it will let you know if Powershop gas is available to be connected at your location.
You can check to see what energy offers Poweshop has available to see if you may be eligible for a sign-up credit when getting your gas from Powershop.
Can I add a gas connection to my address if I don't have one already?
This is a tricky one to answer. It does depend on which part of Australia you live in.
In New South Wales4, at the time of writing, yes, you can get gas added. Powershop is able to provide gas to some parts of New South Wales, but not in all areas. You need to also connect to electricity with Powershop to sign up to one of our gas plans. Powershop will let you know if gas is available to be connected at your location.
The Victorian government5 is phasing out gas connections to new dwellings, but with many homes reliant on gas, you can definitely switch to Powershop gas if you already have a gas connection and are getting Powershop electricity.
In parts of South Australia, and Queensland, you can get your electricity from Powershop, but at this time we are unable to offer gas to these states.
Natural gas wrap up
Natural gas is a big part of the current energy landscape in Australia and around the world. As a transitional fuel, it is certainly has a big part to play in moving toward a more sustainable energy future. The world will continue to move toward more renewable energy sources, and gas will remain critical as renewables become more established. As extraction technologies and frameworks improve, natural gas will be able to help bridge the gap from traditional fossil fuels, to a future that is powered by clean energy.
References
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