Australia's natural gas reserves are linked to major markets by over 17,000 km of high pressure transmission pipelines. Most natural gas markets are supplied by a single pipeline which carries gas from a single production centre. Proven and probable natural gas reserves are 109,051 PJ - equal to about 91 years supply at current production levels. Australian natural gas prices are among the lowest of the OECD countries. Natural gas in Australia is utilised in residential, commercial and industrial applications, as well as for cogeneration, power generation and natural gas for vehicles.
Natural gas consists primarily of methane, which is the simplest hydrocarbon.
Other constituents may include ethane, propane, butane, pentane and traces of carbon dioxide and nitrogen. It is supplied through underground pipes. While the relationship between the LPG market and natural gas is important, this overview deals mainly with Australia's natural gas industry. Natural gas is a major world energy source currently accounting for 24 percent of the world's primary energy needs. Since the 1970s natural gas consumption has grown faster than that of any other fossil fuel.