09 May 2024

Future Gas Strategy confirms critical role of gas in Australia’s energy security

The Australian Government’s Future Gas Strategy recognises the critical role of natural gas for Australia’s energy security in a net zero economy to 2050 and beyond, and that continued investment in new gas supply is needed.

Australian Energy Producers Chief Executive Samantha McCulloch said the Strategy should now provide clear direction on national energy policy that supports the central role of gas in the economy and Australia’s energy transformation.

“The Future Gas Strategy sends a clear message that gas has a critical long-term role in Australia’s energy mix to provide reliable and affordable energy to homes and businesses and drive domestic manufacturing to 2050 and beyond,” Ms McCulloch said. 

“The Strategy needs to be backed by clear, tangible actions that urgently unlock new gas supply to address looming shortfalls and provide an unequivocal signal to the market that Australia is committed to ensuring sustainable gas supply to the Australian economy and the region.”

Ms McCulloch said the Strategy laid a foundation for meaningful reforms to the Australian Government’s gas policy to provide more regulatory certainty, progress new supply projects, and restore investor confidence and Australia’s reputation as a reliable energy partner.

“The Future Gas Strategy provides an opportunity to reset gas policy in Australia,” Ms McCulloch said.

“A Future Made in Australia is not possible without natural gas. Delivering on the Strategy’s objectives will require a whole-of-government response and national leadership to bring state governments on board.”

Ms McCulloch said the Government’s commitment in the Strategy to remain a “reliable and trusted trade and investment partner” needs to recognise there will be significant growth in LNG demand in our region to 2050.

“In addition to the significant economic and strategic benefits from Australia’s LNG trade with countries like Japan, Korea and Malaysia, our LNG exports also have an important role to play in the energy security and decarbonisation of our region.

“It would be short-sighted and at odds with Australia’s commitment to global emissions reductions if we were to stifle LNG exports and miss out on the significant economic opportunity on our doorstep.”

Ms McCulloch said industry would continue to work with the Government to ensure the Strategy translates to tangible outcomes that ensure Australia’s long-term energy security.

“The success of the Strategy will be determined by whether it delivers meaningful policy reforms that address the barriers to new gas supply and investment, and that recognise the central role of gas in the energy transformation,” Ms McCulloch concluded.