Future Made in Australia cold shoulder to gas

Peak industry body Australian Energy Producers has slammed a deal to exclude gas extraction from the Future Made in Australia program. Chief executive Samantha McCulloch said Australia’s long-term energy reliability and affordability required continued investment in new gas supply. Labor’s capitulation to the Greens on the issue further damaged Australia’s reputation as an investment destination at a time when Australia urgently needed investment in new gas projects, she said. Australia’s oil and gas industry was not looking for subsidies, but needed stable policy settings that recognised the critical role of gas in Australia’s energy mix and economic agenda, she said. More than $22 billion is expected to be spent over the next 10 years under the Future Made in Australia plan, supporting industries such as renewable energy and critical minerals. The Greens said the amendments they had secured would ensure that no support will be provided to coal, oil and gas under Future Made in Australia or the commercial investments and programs of Export Finance Australia. The deal is part of an agreement with the government on a package of amendments and reforms to secure the passage of over 20 bills through the Senate. It will also see an additional $500 million allocated to expand the Social Housing Energy Performance Initiative to upgrade public and community homes to lower power bills for tenants. "In negotiations on Future Made in Australia, the Greens have stopped billions of dollars of public money going into coal, oil and gas projects, here or overseas," Greens Leader Adam Bandt said. "Australia's export finance agency has shamefully invested around $1.5 billion in coal, oil and gas projects overseas on their commercial account. That's not possible any more. "Greens pressure works. Having delivered good outcomes that will help people, the Greens now turn to keeping Peter Dutton out and pushing for cheaper rents, cheaper groceries and no new coal and gas in a coming minority parliament. "We can't keep voting for the same two parties and expecting a different result." Opposition spokeswoman for resources Susan McDonald said the latest attack on Australia’s gas industry came as no surprise considering Labor’s track record of demonising the sector. “But we didn’t expect the attack to be legislated so clearly to put it beyond doubt,” she said. The last-minute amendment to block any support for gas, oil or coal under Future Made in Australia legislation would compound growing international uncertainty about Australia’s trade credentials, she said. “This is an extraordinary tin-eared move from the government in the same week as instability in our energy grid compounded the risk of blackouts. Surely Labor, the Greens and the Teal politicians can see their renewables-only approach to energy is driving up power prices across Australia,” Senator McDonald said. “A Coalition government will support new gas infrastructure, target key gas basins, and will wholeheartedly stand by our gas sector as it continues to power Australia and the world.” Ms McCulloch said amendments to explicitly exclude gas extraction and infrastructure from the Future Made in Australia investment mandate were at odds with the government’s own Future Gas Strategy, which found natural gas was critical to Australia’s energy security “to 2050 and beyond”. “Natural gas is also critical to many of the Future Made in Australia’s strategic objectives, including growing our critical minerals industry and manufacturing capabilities,” Ms McCulloch said. “Natural gas provides around 40 per cent of energy used in Australian manufacturing and 46 per cent in mining. “The Future Gas Strategy confirmed Australia needs ongoing investment in new gas exploration and development to power our mining and manufacturing sectors and to address looming structural gas shortfalls.” An independent report by EnergyQuest found that a halt to new gas investment – as proposed by the Greens – would trigger “major economic disruption” on both coasts of Australia, and lead to a high risk of blackouts, manufacturing job losses and inevitably higher energy prices. “The government should not let the Greens set its economic agenda. It is a recipe for higher energy costs, widespread job losses and a major hit to the economy,” Ms McCulloch said.

Future Made in Australia cold shoulder to gas

Industry Queensland

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