08 Jun 2022

Media Release: Oil and gas sector to work with authorities on energy system pressures

Australia’s oil and gas industry recognises the issues confronting the east coast electricity market, and gas suppliers will continue to work constructively with regulators and governments on a way forward, following the meeting of energy ministers this afternoon.

The Australian Petroleum Production & Exploration Association (APPEA) said it was important the whole energy system was considered given recent pressures on gas supply were caused by coal-powered generation outages and the inability of renewables to input power as required.

“These are highly complicated regulatory matters and we look forward to continuing consultation with regulators and governments to resolve them,” APPEA Acting Chief Executive Damian Dwyer said.

“Today’s meeting recognised the critical role the gas sector plays in meeting the energy security needs of the nation.

“We are doing everything we can to look after customers and fill the energy void left by coal-fired power generators in particular.

“Gas companies have already acted to ensure gas flows to where it is needed using the mechanisms put in place to help us do so – mechanisms which provide the market with transparency, affordability and supply.

“As today’s meeting reaffirmed, gas is delivering energy security to Australia and the current situation highlights the critical role gas will play in decades to come, replacing higher emissions coal and as a stabliser for renewables when the wind doesn’t blow and the sun doesn’t shine.

“But to do that needs more investment certainty. Natural gas gives the energy system stability. But the industry needs an investment environment that supports stability.

“Years of needless state moratoriums, bans and delays, have only contributed to the situation the east coast energy market is now in. The industry has invested over $20 billion on supply in the past 18 months. More can be invested under the right investment settings.”

To view this media release as a PDF, please click here.