Dutton details planned gas supply shake-up

Opposition leader Peter Dutton has announced the Coalition's 'National Gas Plan' including the introduction of an east coast gas reservation and initiatives to accelerate new projects. Mr Dutton said the plan, unveiled in his Budget reply, would deliver lower wholesale gas prices - which would flow through the economy. Opposition leader Peter Dutton. The east coast gas reservation scheme would require 50-100 petajoules of spot cargo exports to be delivered to the domestic market. "This will secure an additional 10 to 20 per cent of the east coast’s demand – gas which would otherwise be exported for use in other markets for consumers in those countries," Mr Dutton said. Gas sold on the domestic market would be decoupled from overseas markets to protect Australia from international price shocks, he said. Mr Dutton said also a Coalition Government would immediately audit development-ready projects with a focus on the southern states and fast-track a decision on Western Australia’s North West Shelf project. "We will halve approval times. We will defund the activist-led Environmental Defenders Office, which has been disgraced and which has obstructed projects," he said. "We will accelerate new investment in gas projects by reinstating a $300 million Strategic Basin Plan and include gas in the Capacity Investment Scheme. "We will invest $1 billion into a Critical Gas Infrastructure Fund to increase gas pipeline and storage capacity. "We will put in place ‘use it or lose it’ stipulations for gas drilling companies – so offshore gas fields are not locked-up for years. And we will ensure we will have a fit-for-purpose gas trigger to safeguard supply." Mr Dutton also reiterated the Coalitions stance on introducing nuclear power to help secure the nation’s energy security. "Nuclear power’s high yield of energy and small footprint means there’s no need to carpet our national parks, prime agricultural land, and coastlines with industrial scale renewables," he said. Dutton's east coast gas market fix deemed a 'misfire' Peak industry group Australian Energy Producers has welcomed the Coalition’s commitment to fast-track new gas supply and streamline approvals. But it slammed the east coast gas reservation plan as a misfire that will drive away investment and exacerbate the supply challenges in the longer term. Australian Energy Producers chief executive Samantha McCulloch. "AEMO’s latest Gas Statement of Opportunities highlights that the east coast market will face gas supply shortfalls from 2028," Australian Energy Producers chief executive Samantha McCulloch said. "There is an urgent need to develop new supply, particularly in the southern states, but the projected shortfalls are a fraction of what the Coalition is aiming to force into the market. “This glut of gas will deter investment in new supply and undermine our trading relationships.” Ms McCulloch said the plan also ignored the reality that the pipelines from Queensland to Victoria already operated at capacity during peak periods, and the lack of storage for additional gas to be sent south. “Industry stands willing to engage constructively with government on considered policies that deliver more gas for Australians and attract continued investment in new gas projects to ensure Australians have reliable and affordable gas to 2050 and beyond,” she said. “We urge all parties to work with industry on sustainable solutions that provide certainty and stability for investment in the new gas exploration and development that is needed for Australia’s long-term energy security.”

Dutton details planned gas supply shake-up

Industry Queensland

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