APLNG and Senex have committed to supply substantial quantities of gas to the east coast domestic market out to 2030, securing exemptions from the pricing provisions of the Gas Market Code of Conduct.

The Federal Government said enforceable commitments totalling up to 300 PJ of gas to 2030, and close to 140 PJ to the end of 2027, had been secured with APLNG and Senex.

Senex chief executive officer Ian Davies said consultation with the government had moderated the most severe effects of the initial gas market intervention proposal and would mean vital new investment could be made to develop new gas supply.

“Today’s announcement marks a significant milestone for our $1 billion Surat Basin natural gas investment – the Atlas gas field expansion – removing some regulatory uncertainty and taking us one step closer to delivering essential energy for Australians,” he said.

“Senex now awaits federal environmental approvals under the EPBC Act which would see more than 150 petajoules of long-term, reliable natural gas supply flow to Australian manufacturers and households from 2025.

“Senex first applied for EPBC approval of the Atlas expansion more than a year ago, as the pre-existing EPBC approval for the same activities Senex proposes to undertake did not transfer to Senex when it acquired the Atlas expansion acreage from APLNG.

“Senex’s EPBC application is over 1800 pages and includes detailed scientific assessments by leading independent ecology and groundwater experts and clearly demonstrates the low impact of the Atlas expansion consistent with APLNG’s previous approval.”

Mr Davies said the Federal Government had issued massive incentives to the states to streamline approval processes and encourage investment in renewables projects, including through the Capacity Investment Scheme, and the same should be done for natural gas projects that prioritise the domestic market.

“Against the backdrop of forecast gas shortfalls, a cost-of-living crunch, and manufacturers facing significant challenges in securing new gas supply because of hampered investment, timely and efficient EPBC and other government approvals have never been more important,” he said.

Federal Resources Minister Madeleine King said gas would continue to play an important role in the reliability and stability of Australia’s energy system.

“The flexibility of gas as a firming fuel and as essential manufacturing and minerals processing input will be required as the transition accelerates domestically and in our region,” she said.

“These commitments also mean that gas producers can get on with the job of safely and responsibly delivering gas to users, while reassuring project investors and our export partners that Australia remains a stable and reliable supplier of energy.”

Climate Change and Energy Minister Chris Bowen said the outcome was a win for Australian energy users.

“The new commitments will provide more affordable gas to the Australian market in the short to medium term and will provide the energy security that Australia needs as it makes its transition to net zero emissions,” he said.

“If the Greens and Liberals team up and disallow the code and scrap these commitments, it will threaten energy security for millions of households and thousands of manufacturing jobs across the country. “