Transcript: Samantha McCulloch on Sky News with Kieran Gilbert discussing Australian Energy Producers’ Federal Election priorities

Australian Energy Producers Chief Executive Samantha McCulloch on Sky News with Kieran Gilbert discussing Australian Energy Producers’ Federal Election priorities

Kieran Gilbert: Australian Energy Producers have released their list of priorities ahead of the federal election, calling on the next government to prioritise gas as part of the nation’s ongoing energy mix. Joining me live in the studio is Chief Executive of the peak body for the industry, Samantha McCulloch. Samantha, thanks for your time. This is the frustration, I think, for many in industry, many in your sector as well. We’ve got massive supplies of gas, but we haven’t tapped into them. That’s the problem. How do we mobilise that supply to ensure stability?

Samantha McCulloch: Thanks, Kieran. And absolutely, we are a nation that’s energy rich, that has abundant gas resources, and yet we’re in a situation where we’re actually facing gas shortfalls from 2027 on the East Coast. Now, that’s devastating for the economy. When you think of how important gas is in terms of supporting our manufacturing sector, it’s 40% of the energy that goes into manufacturing. It’s critical for keeping the lights on for our power generation and there are millions of households that also rely on gas. So, you know, what we have seen in recent years is policy upheaval. We’ve seen market interventions, we’ve seen regulatory processes and approvals that drag on for years, and years and years, and that’s delaying much needed new gas supply.

KG: Your federal election platform for the industry is saying, first and foremost, boost supply.

SM: Absolutely. We need to get more gas into the market faster. There’s no better example of this than if we look at Victoria, where the shortfalls are concentrated. This is a state that has demonised gas, that’s banned exploration and development of its own gas resources. It’s been so effective in preventing gas investment that soon Victorians are likely to be relying on more expensive imported LNG to keep the lights on.

KG: It’s ludicrous because for those pragmatic advocates, you know, who want to see carbon reduction and net zero, gas should be part of the mix. It must be part of the mix.

SM: It’s essential. We don’t get to net zero without natural gas. So, we need gas to be backing up renewables in power generation. It’s that reliable backup for greater shares of renewables. It supports the shift away from coal. The gas industry is also central to developing the technologies that we need to get to net zero, like carbon capture and storage. And we recently had the Moomba project in South Australia commence operation – another success story for carbon capture and storage.

KG: So, with your federal platform, reading through it, written between the lines, it seems to me there is a concern if there is a hung parliament that anti-gas Greens or Teals might carry the day in terms of negotiations. That must be a worry for you?

SM: Well Kieran, we’ve already seen that in the last few days the Greens are threatening to use the North West Shelf project in WA as a bargaining chip in a minority government situation. Now this is a project that’s absolutely critical to Western Australia energy supply. It’s been operating for 40 years and a huge contribution to the WA economy, to jobs, to energy security. The project is seeking an extension. It’s gone through approvals now for six years at the state level and we’ve now seen further regulatory delays at the federal level. There’s just no excuse for it and it’s an example of the sort of challenges that the industry is facing, but also why Australia is becoming less attractive as an investment destination.

KG: And just to recap what we said earlier though, you cannot harm the efforts to get to net zero by 2050, and in terms of sort of global competitiveness for those wanting to invest in a green economy, because the gas is, the whole idea of it is as a peaking power, peaking supply, that helps complement that the global take up.

SM: That’s why gas has never been more important in our energy mix, because we need it to support the transition. If you look at our role domestically, for power generation, for manufacturing, for processing critical minerals and those new opportunities for the Australian economy to contribute to those technologies and fuels that are needed for net zero. But we’re also a major exporter of LNG, and if you look at our region, Southeast Asia is the fastest growing energy region in the world, and it’s fuelled by coal. It needs more gas and LNG demand in that region is set to increase as much as Eight-fold between now and 2050, according to the International Energy Agency.

KG: Some of the critics say that that’s why we’ve got shortages, because the producers have exported too much. You would argue that’s not the case, that there needs to be more supply across the board.

SM: This is not an either-or discussion when you talk about exports and the domestic market. The industry is firmly committed to the domestic market, notwithstanding the challenges we’ve had in places like Victoria where we’re not allowed to invest or haven’t been allowed to invest. But it’s that access to those export markets that’s unlocked $400 billion in investment in our gas resources. It’s enabling more gas for the domestic market. If you look at Queensland, that’s built a thriving world leading gas industry, it’s now having to send more and more gas down to Victoria and frankly, because of the lack of infrastructure and infrastructure constraints, every molecule of gas from Queensland that can get to Victoria during those peak periods is being sent to Victoria, but it won’t be enough over the long term. So, that’s why we need to be investing in more supply near where it’s used.

KG: And so just finally, if, for example, there was a change of government in Victoria and they do pursue the industry, how long would it take to get it back up and running, given the years of basically blocking it?

SM: This isn’t something we can just switch on overnight. We do need time to be able to develop, explore, develop gas resources. But there are a number of projects that are in that process now, but they’re getting tied up in these regulatory approvals that can drag out for years, they’re getting tied up in lawfare. So, we need to really be focused on ensuring those projects can move forward. We have the gas, we just need to be able to bring it to market faster.