Media Release: Addressing barriers to new gas supply should be the national priority

Today’s Energy and Climate Change Ministerial Council meeting was a missed opportunity to commit to concrete actions to address looming gas shortfalls in eastern Australia.

Australian Energy Producers Chief Executive Samantha McCulloch said that while the inclusion of gas shortages on the agenda today was long overdue, the focus must be on delivering tangible actions to bring on new gas supply sooner.  

“The Australian Energy Market Operator (AEMO) and the Australian Competition and Consumer Commission (ACCC) are very clear on what needs to be done, and what’s at stake,” Ms McCulloch said.

“Removing barriers to new gas supply, including addressing approval delays, is critical to address projected shortfalls. We don’t need another report to tell us that.”

Ms McCulloch said any work examining the east coast gas market pressures must include immediate actions to address the barriers to new supply, particularly in Victoria and NSW that are most at risk of shortfalls.

“Queensland should not have to do the heavy lifting and compromise their own energy security as a result of years of inaction and anti-gas policies in Victoria and NSW.

“Every state has a responsibility to do everything they can to ensure Australians have reliable and affordable energy.”

Ms McCulloch also cautioned against market interventions, which risk stalling investment in new gas exploration and development.

“The east coast gas market is yet to fully recover from the shock of the Federal Government’s intervention two years ago.

“Without clear parameters for the proposed work, the risk of further interventions will only heighten sovereign risk concerns and deter critically needed investment in new gas supply,” Ms McCulloch said.

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