Victoria is facing a gas shortage this winter, which could plunge the national electricity market into a fresh power crisis, Australia's energy regulator has warned.
The Iona gas storage facility in Port Campbell has dropped to record low supply-levels due to high demand amid the state's price cap.
In an industry letter issued on Monday, the Australian Energy Market Operator (AEMO) warned of the risk of curtailment during peak demand.
Lochard Energy, which owns Iona, said "unplanned coal fired generation outages" and cold weather has increased demand.
"It is the case that gas supply and winter peaking capacity are becoming increasingly tighter on the east coast," Lochard said in a statement.
"This year, unplanned coal fired generation outages and especially cold winter weather have led to Iona customers starting to withdraw gas from storage earlier and in larger quantities than usual."
Reports suggest the AEMO may intervene to limit the amount of gas being taken from the facility.
The state's price cap remains at $40 per gigajoule, as demand for gas continues to soar globally due to various factors including a significant drop in supply caused by the war in Ukraine.
The latest warning comes after AEMO temporarily halted the east-coast market amid a risk of blackouts.
Victorian Energy Minister Lily D'Ambrosio has been approached for comment.
