Govt woken up to fact industry needs gas . Govt struggling to explain its policy and woke greens and teals rubbing hands together as they know it will win them votes as public is so uninformed
Unless there is security in politics and policy there will not be the level in gas investment to bridge the gas shortage . Government if they go down path of price capping will simply realise that gas is a scale business and without scale and continuity into future there is no cheap gas for anyone as capital investment has such a long payback period.
A lot of politics being played out yet again and govt realises just how much foreign income gas brings in along with employment. Green energy options and storage due to infustructure and lots or hurdles and roadblocks are not progressing as expected so all politicians are going to struggle to deliver and are also expecting technology changes to help solve problems
https://www.minister.industry.gov.au/ministers/king/media-releases/australias-future-gas-strategy=============================================================================================Australia's Future Gas Strategy
9 May 2024The Australian Government has released a medium and long-term strategy that establishes the role gas will play in the transition to net zero by 2050, securing affordable gas for Australia as we move to a more renewable grid, and confirming our commitment to being a reliable trading partner.
Minister for Resources and Northern Australia Madeleine King has released the Future Gas Strategy which will support a Future Made in Australia and ensures decisions on gas supply and production will be based on the best possible information.
The Strategy is centred on six principles that will underpin government policy on gas.
- Australia is committed to supporting global emissions reductions to reduce the impacts of climate change and will reach net zero emissions by 2050.
- Gas must remain affordable for Australian users throughout the transition to net zero.
- New sources of gas supply are needed to meet demand during the economy-wide transition.
- 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.
- Gas and electricity markets must adapt to remain fit for purpose throughout the energy transformation.
- Australia is, and will remain, a reliable trading partner for energy, including LNG and low emission gases.
The Future Gas Strategy also includes a detailed analytical report on gas demand and supply produced after an extensive period of work and consultation.
The Strategy identifies the following actions:
- Prevent gas shortfalls by working with industry and state and territory governments to encourage more timely development of existing gas discoveries in gas-producing regions.
- Reduce gas related emissions by working with industry and regulators to minimise venting and flaring of methane from operations and consider further emissions reductions measures through the Government’s six decarbonisation plans. The Government will also adopt technology-neutral approach to exploration data acquisition to minimise seismic surveying where possible.
- Support households and businesses through the transition to net zero by working closely with the states and territories to manage pricing impacts and the Gas Market Code.
- Empowering First Nations peoples by clarifying consultation requirements for offshore resources activities and pursue benefit-sharing to ensure First Nations people are partners in the transition to net zero.
- Promote geological storage of CO2 and support our region’s transition to net zero by releasing acreage for offshore CCS and establish a new initiative on regional cooperation on transboundary carbon capture and storage which will provide options for energy security and carbon management solutions for our regional partners.
“Gas plays a crucial role in supporting our economy, with the sector employing 20,000 people across the country, including remote and regional communities,” Minister King said.
“Ensuring Australia continues to have adequate access to reasonably priced gas will be key to delivering an 82 per cent renewable energy grid by 2030, and to achieve our commitment to net zero emissions by 2050.
“The Strategy makes it clear that gas will remain an important source of energy through to 2050 and beyond, and its uses will change as we improve industrial energy efficiency, firm renewables, and reduce emissions.
“But it is clear we will need continued exploration, investment and development in the sector to support the path to net zero for Australia and for our export partners, and to avoid a shortfall in gas supplies.”
Gas is crucial for A Future Made in Australia as it supports manufacturing, food processing and refining of critical minerals which will help Australia and the world to lower emissions. Gas supplies 27 per cent of Australia’s energy needs and represents 14 per cent of Australia’s export income.
Gas will play an important role in firming renewable power generation and is needed in hard-to-abate sectors like manufacturing and minerals processing until such time as alternatives are viable and can be deployed.
Since 2022, the Australian Government has introduced the mandatory Gas Code of Conduct, a renewed Heads of Agreement with LNG exporters, and strengthened the Australian Domestic Gas Security Mechanism (ADGSM) to ensure Australian households and businesses have affordable gas supplies.
The Future Gas Strategy is available on the Department of Industry, Science and Resources website.
https://www.industry.gov.au/publications/future-gas-strategyThe Future Gas Strategy maps the Australian Government’s plan for how gas will support our economy’s transition to net zero in partnership with the world.
The strategy’s objectives are to:
- support decarbonisation of the Australian economy
- safeguard energy security and affordability
- entrench Australia’s reputation as an attractive trade and investment destination
- help our trade partners on their own paths to net zero.
This strategy is supported by the Future Gas StrategyAnalytical Report, which provides the Australian Government’s assessment of the latest available evidence.
Explore the digital publication
The strategy at a glance
The Future Gas Strategy is our plan for gas production and consumption in Australia. The strategy explains the principles the Australian Government will use to guide policymaking about gas to support the transition to net zero.
The strategy is an evidence-based framework built around 6 principles. It draws on the Future Gas Strategy Analytical Report, which provides in-depth analysis of relevant data about gas supply, consumption and emissions. The strategy is also shaped by extensive public consultation, which revealed the barriers and opportunities around gas supply and consumption for Australian households and businesses and our international trade partners.
The role of gas will change as we reach net zero in Australia by 2050. Even in net zero scenarios, Australia and the world will need gas at lower levels through to 2050 and beyond. Australian gas will play an important role in an orderly global and domestic energy transformation. However, to meet our legislated climate goals, we must find alternatives to gas and gas-related emissions must decline.
Throughout the strategy, we use several scenarios to help shape our understanding of the future of Australian gas. These scenarios are not predictions. They let us compare potential versions of the future based on different assumptions. This helps decision makers understand potential trade‑offs and make the best choices possible.
Read more information about these scenarios in Appendix A.
Guiding principles for Australia’s gas
The strategy adopts 6 principles that will guide policy actions to achieve the strategy’s aims.
- 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.
- 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.
- 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.
- 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.
- Gas and electricity markets must adapt to remain fit for purpose throughout the energy transformation.
- 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.
Learn how these principles are guiding our approach to gas in Australia
Where Australia goes from here
Immediate actions arising from these principles include:
- updating Commonwealth retention lease policies to encourage more timely development of existing gas discoveries, and considering a firmer ‘use it or lose it’ policy
- working with regulators and industry to reduce and, where possible, eliminate gas venting and flaring, unless required for safety purposes
- continuing to release offshore acreage for greenhouse gas storage
- establish a new Transboundary Carbon Capture and Storage (CCS) Program which will provide options for energy security and carbon management solutions for our regional partners
- clarifying consultation requirements for offshore petroleum and greenhouse gas storage activities as part of a broader three year review of the offshore environmental management regime.
These actions will be adapted and refined as we move toward 2050.
Resources
Downloads
Read and download the data underpinning the Future Gas Strategy at the Future Gas Strategy Analytical Report.
Download the Future Gas Strategy as a PDF, or download a copy of the summary document Future Gas Strategy in brief as a PDF or Word document.
More information
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