Industry highlights need to clear barriers to gas growth

A newly released ACCC report underscores the urgency for governments to fast-track new gas projects and provide policy certainty to avoid shortfalls and higher energy prices across eastern Australia, a peak industry group warns. Australian Energy Producers chief executive Samantha McCulloch was commenting after the ACCC (Australian Competition and Consumer Commission) released its latest gas inquiry report. Related: ACCC warns of ‘structural decline’ in domestic gas supply “The ACCC has again urged governments to address the regulatory approval delays, legal hurdles and ‘an uncertain policy environment’ delaying new gas projects and deterring investment,” Ms McCulloch said. “At a time when Australians are facing cost-of-living pressures, governments must do everything they can to remove these barriers and ensure reliable and affordable energy for Australian homes and businesses.” The ACCC report released today estimates a gas surplus across the east coast over 2025 and 2026. However, it warns Victoria and NSW face peak-period shortfalls this winter and that structural shortfalls would emerge across the east coast by 2027 if new gas projects aren’t developed. Ms McCulloch welcomed the ACCC’s recommendation that ‘the role of gas should be explicit in government planning for the energy transition’ to incentivise and coordinate investment in new gas supply and infrastructure. The report noted that LNG imports are likely to be required to supplement gas supply in Victoria and NSW, but cautioned imports could increase gas prices and ‘continued domestic gas production will be important to limit risks to energy security on the east coast and market stability associated with reliance on international LNG markets’. Ms McCulloch said Victoria and NSW should focus on developing their own abundant gas reserves instead of relying on imports. “The priority should be on providing reliable and affordable gas sourced close to where it is needed,” she said. “Australian gas producers are committed to providing reliable and affordable energy for Australian homes and businesses, but as the ACCC has confirmed, governments must act to restore investment confidence and ensure timely approvals for new gas supply.” Opposition resources spokeswoman Senator Susan McDonald said the ACCC report yet again confirmed the abject failure of the Labor Government to address gas prices, supply, and the cost of living crisis. “This report confirms that current gas supplies are now on a knife edge and that gas prices are still at least double what they were under the Coalition,” Senator McDonald said. “Southern states, like Victoria, are still in a shortfall, meaning that Queensland gas is having to do the heavy lifting just to keep the lights on. “Declining gas production in the southern states means that stored gas, and gas delivered from Queensland, are playing an increasingly important role in meeting winter peak demand in the southern states.” In a recent opinion piece, Federal Resources Minister Madeleine King highlighted the need for firming gas power as the nation moved to decarbonise the economy by moving to renewable energy. "Gas is flexible and – unlike coal and nuclear – can be turned on or off in a matter of minutes, making it an indispensable backup for variable renewable generation," she said. "It is the variable and flexible nature of gas coupled with its important role in supporting high-heat manufacturing that makes gas a vital insurance policy for Australia as we move to decarbonise our economy." She said the Federal Government's Future Gas Strategy made it clear that preserving consumer choice was a key pillar of Australia’s natural gas policy. "In a time where people are doing it tough, our policies are also designed to ensure that Australian homes and businesses have the gas they need at affordable prices. Though the Opposition talks a big game on gas, the truth is they left our energy markets in a mess," Ms King said. ,

Industry highlights need to clear barriers to gas growth

Industry Queensland

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