Beetaloo or bust: the route to commercial success for an Australian shale play, page-2

View from Canberra

Gas transport and storage infrastructure is constrained in south eastern states

In contrast to the southern states, only around one-third of current gas reserves in Western Australia and Queensland have been produced, and the Northern Territory has only used 4% of its gas reserves. Current transmission infrastructure linking northern supply to the south is, however, limited. As a result, more investment in pipelines and storage capacity would be needed for northern gas to provide a long-term solution to southern gas needs.

Guiding principles for Australia’s gas

The strategy adopts 6 principles that will guide policy actions to achieve the strategy’s aims.

1. Australia is committed to supporting global emissions reductions to reduce the impacts of climate change and will reach net zero emissions by 2050.Gas production and use must be optimised through the transition and residual use must be abated or offset to achieve this economy-wide commitment.
2. Gas must remain affordable for Australian users throughout the transition to net zero.A future made in Australia, our competitive advantage in abundant resources, and our standard of living requires reliable, affordable and clean energy. Continued gas development and more flexible gas infrastructure is needed to increase the resilience of Australia’s energy system and keep costs down as we transition. Government decisions on gas development rights should prioritise timely development and discourage repeated delays to ensure supply and affordability.
3. New sources of gas supply are needed to meet demand during the economy-wide transition.Government policies to enable natural gas exploration and development should focus on optimising existing discoveries and infrastructure in producing basins. This includes applying technology-neutral approaches to exploration data acquisition (to minimise seismic surveying where possible), prioritise energy security, and align with our net zero emissions targets. Robust environmental approval processes are key to the social license of the gas industry.
4. Reliable gas supply will gradually and inevitably support a shift towards higher-value and non-substitutable gas uses. Households will continue to have a choice over how their energy needs are met.
5. Gas and electricity markets must adapt to remain fit for purpose throughout the energy transformation.
6. Australia is, and will remain, a reliable trading partner for energy, including Liquefied Natural Gas (LNG) and low emission gases.Australia’s ambition to become a renewable energy superpower will involve developing new low emissions energy exports to support the energy security and decarbonisation efforts of our trade partners.

Future of Gas, May 2024