Media Release: No Future Made in Australia without gas

The Federal Labor Government’s deal with the Greens to exclude gas extraction from the Future Made in Australia legislation ignores the critical role of gas in powering Australia’s manufacturing and mining sectors.

Australian Energy Producers Chief Executive Samantha McCulloch said Australia’s oil and gas industry was not looking for subsidies, but needed stable policy settings that recognised the critical role of gas in Australia’s energy mix and economic agenda.

“Australia’s long-term energy reliability and affordability requires continued investment in new gas supply,” Ms McCulloch said.

“Labor’s capitulation to the Greens today further damages Australia’s reputation as an investment destination at a time when Australia urgently needs investment in new gas projects.”

Ms McCulloch said Government amendments to explicitly exclude gas extraction and infrastructure from the Future Made in Australia investment mandate were at odds with the Government’s own Future Gas Strategy, which found natural gas was critical to Australia’s energy security “to 2050 and beyond”.

“Natural gas is also critical to many of the Future Made in Australia’s strategic objectives, including growing our critical minerals industry and manufacturing capabilities,” Ms McCulloch said.

“Natural gas provides around 40 per cent of energy used in Australian manufacturing and 46 per cent in mining.

“The Future Gas Strategy confirmed Australia needs ongoing investment in new gas exploration and development to power our mining and manufacturing sectors and to address looming structural gas shortfalls.”

Ms McCulloch said today’s deal with the Greens sent the wrong signal to investors.

An independent report by EnergyQuest found that a halt to new gas investment – as proposed by the Greens – would trigger “major economic disruption” on both coasts of Australia, and lead to a high risk of blackouts, manufacturing job losses and inevitably higher energy prices.

“The Government should not let the Greens set its economic agenda. It is a recipe for higher energy costs, widespread job losses and a major hit to the economy,” Ms McCulloch said.

Media contact: 0401 839 227