Gas strategy highlights need to step up supply

The Federal Government says new sources of gas supply are needed and it will work to encourage more timely development of existing discoveries under a new medium and long-term gas strategy. Resources Minister Madeleine King today released the Future Gas Strategy, which she said would support a Future Made in Australia and ensure decisions on gas supply and production were based on the best possible information. The strategy is centred on six principles that will underpin government policy on gas: Australia is committed to supporting global emissions reductions to reduce the impacts of climate change and will reach net zero emissions by 2050. Gas must remain affordable for Australian users throughout the transition to net zero. New sources of gas supply are needed to meet demand during the economy-wide transition. Reliable gas supply will gradually and inevitably support a shift towards higher-value and non-substitutable gas uses. Gas and electricity markets must adapt to remain fit for purpose throughout the energy transformation. Australia is, and will remain, a reliable trading partner for energy, including LNG and low-emission gases. "Gas plays a crucial role in supporting our economy, with the sector employing 20,000 people across the country, including remote and regional communities,” Ms King said. "Ensuring Australia continues to have adequate access to reasonably priced gas will be key to delivering an 82 per cent renewable energy grid by 2030, and to achieve our commitment to net zero emissions by 2050. "The strategy makes it clear that gas will remain an important source of energy through to 2050 and beyond, and its uses will change as we improve industrial energy efficiency, firm renewables, and reduce emissions. "But it is clear we will need continued exploration, investment and development in the sector to support the path to net zero for Australia and for our export partners, and to avoid a shortfall in gas supplies.” She said gas would play an important role in firming renewable power generation and was needed in hard-to-abate sectors like manufacturing and minerals processing until such time as alternatives are viable and can be deployed. The strategy lists actions including preventing gas shortfalls by working with industry and state and territory governments to encourage more timely development of existing gas discoveries in gas-producing regions. Another action in the strategy is to reduce gas-related emissions by working with industry and regulators to minimise venting and flaring of methane from operations and consider further emissions reductions measures through the government’s six decarbonisation plans. It also supports the promotion of geological storage of CO2 and supporting the region’s transition to net zero by releasing acreage for offshore carbon capture and storage. The Australian Resources & Energy Employer Association (AREEA) welcomed the Federal Government’s commitment of support for the nation’s gas sector."It’s long overdue recognition that gas has a significant role to play in the energy transition and Australia’s future," chief executive officer Steve Knott said."The world’s energy security depends crucially on the ongoing role of gas in the energy mix."For Australia, this has broader implications than reserves of resources and the technical capacity to extract them."With strengthening international production, stable policy settings for a competitive investment environment must be a top priority. Excessive regulation, tax, red tape and new and unnecessarily complex industrial relations transaction costs only make it more difficult to do business, deterring investment and hurting productivity and jobs."AREEA will work closely with the government to ensure the wider regulatory system removes barriers and puts Australia in a prime position to secure investment in new gas projects." The Future Gas Strategy can be viewed on the Department of Industry, Science and Resources website.

Gas strategy highlights need to step up supply

Industry Queensland

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