Media release: Coalition misfires in east coast gas market fix

The Coalition’s plan to force an oversupply of gas into the east coast market in an attempt to artificially reduce prices is yet another damaging market intervention that will drive away investment and exacerbate the supply challenges in the longer term.  

Australian Energy Producers Chief Executive Samantha McCulloch said industry agreed that addressing projected gas supply shortfalls on the east coast of Australia and ensuring reliable and affordable gas for Australian households and businesses was a national priority.  

“Industry welcomes the Coalition’s commitment to fast-track new gas supply and streamline approvals, but the benefits of these reforms risk being undermined by deliberately oversupplying the market,” Ms McCulloch said.  

“AEMO’s latest Gas Statement of Opportunities highlights that the east coast market will face gas supply shortfalls from 2028. There is an urgent need to develop new supply, particularly in the southern states, but the projected shortfalls are a fraction of what the Coalition is aiming to force into the market.”  

“This glut of gas will deter investment in new supply and undermine our trading relationships.” 

Ms McCulloch said the plan also ignored the reality that the pipelines from Queensland to Victoria already operate at capacity during peak periods, and even if it could be physically moved south there is currently nowhere to store it.  

“Industry stands willing to engage constructively with government on considered policies that deliver more gas for Australians and attract continued investment in new gas projects to ensure Australians have reliable and affordable gas to 2050 and beyond,” she said. 

“We urge all parties to work with industry on sustainable solutions that provide certainty and stability for investment in the new gas exploration and development that is needed for Australia’s long-term energy security.”     

Ms McCulloch said industry was not looking for handouts but needed policy certainty and a return to normal market conditions to support continued investment in gas supply.  

“Australia needs long-term solutions that do not further distort the gas market,” she said. 

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