AUST today (extract): INTERVENTION IN GAS MARKET ‘CHILLING SIGN’...

AUST today (extract):
INTERVENTION IN GAS MARKET ‘CHILLING SIGN’ FOR INVESTORS
Australia is falling behind international rivals in attracting investment in gas exploration and production, a report from global consultancy Wood Mackenzie has found, a trend that risks undermining the nation’s energy security and stalling the transition away from coal.
The report, Australia’s Natural Gas Investment Competitiveness, commissioned by industry group Australian Energy Producers, found global gas exploration investment had surged by nearly 30 per cent over the past five years. In contrast, Australia’s growth has been just 15 per cent, placing it well behind international peers.
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“The government’s east coast gas market intervention has not dampened prices, but it has sent a chilling signal to investors,” Ms McCulloch said. “To restore confidence, we must reduce approval delays, support new infrastructure, and acknowledge gas’s ongoing role in the energy transition.”
Policymakers are simultaneously grappling with looming supply issues.
The Australian Energy Market Operator has warned of a potential gas shortfall on the east coast from 2029, and flagged possible daily supply challenges even sooner without urgent investment in new developments.
Industry groups say regulatory hurdles are delaying crucial projects. One example often cited is Woodside Energy, still awaiting approval for a revised plan to continue operations at its North West Shelf facility, despite the site producing gas for more than half a century and the company proposing no physical expansion.
Environmental groups have pushed back against Woodside’s broader development agenda, criticising plans for major new LNG projects and arguing they risk prolonging fossil fuel use at a time when rapid decarbonisation is needed. They also dispute claims that LNG meaningfully displaces coal use globally.
The Albanese government has pushed back on suggestions it is ideologically opposed to gas, pointing to its Future Gas Strategy, released in May 2024, which positions gas as a critical component of the energy mix through to 2050 and beyond. Industry executives say actions such as protracted approvals and policy uncertainty suggest otherwise.