27 Jan 2023

Statement: APPEA responds to ACCC East Coast Gas Supply Update

Statement attributable to APPEA Chief Executive Samantha McCulloch:

Today’s ACCC’s gas inquiry report highlights there is sufficient gas available to supply the market in 2023.

However, it is a further reminder of the critical need for more supply and investment to ensuring future energy security.

The industry has consistently highlighted that the key to avoiding gas shortages is through policy settings which are conducive to bringing on more investment in supply.

The report also shows demand for gas in southern states is expected to exceed production by 52 PJ from gas sources located in southern states, reinforcing the need for Victoria and New South Wales to develop their own resources, rather than rely on Queensland to do all the heavy lifting.

We are now seeing the increased pressures from the impact of moratoriums and bans in Victoria and New South Wales – the two biggest users of gas on the east coast.

From legislating a price cap, to proposing a mandatory Code of Conduct and permanent regulation of prices, the  uncertainty in the Australian gas market is having a detrimental impact on the investment decisions to supply more gas, ultimately leaving Australian households and manufacturing worse off.

The industry takes its obligations to customers and providing energy security seriously and is committed to providing domestic gas supply, however recent market interventions continue to place roadblocks in the path of new investment.

The ACCC has underscored the importance of gas for Australia’s energy transition and the need to reduce the barriers faced by gas producers in bringing new gas supply to market.