Here is Chris Bowen on May 1 - not sure if this part of the speech has been posted here:
That’s why the second part of the Government’s roadmap is to support renewables with storage and transmission, and recognise the important role of gas in underpinning the renewable transition.
Today I want to comment on gas in particular.
Frankly there are exaggerated claims on all sides of the gas debate.
Slogans like “gas-led recovery” and “no new gas” are equally catchy – and equally unhelpful to explaining the proper role of gas in our net zero energy mix.
That’s why my colleague Madeleine King is developing the Future Gas Strategy – so that our national discussion on gas can be guided more by the evidence and less by the culture wars.
Minister King will release the Strategy in the coming weeks.
But three facts should already be clear.
First, gas will play an important role in electricity by firming and peaking renewables.
Unlike coal and nuclear, gas generation is flexible. The ability to turn gas peaking power stations on and off at very short notice is sensible support for renewables.
Second, while technologies like green hydrogen will be vital – and I am very optimistic about Australia’s role in the global hydrogen supply chain – there are not yet substitutes for gas in many industrial settings.
And third, with current supplies of gas dwindling, new supply will be needed – even as we electrify at pace.
That’s why the Government has implemented the Gas Market Code.
The Code offers gas producers a simple choice:
Comply with a price cap of $12 a gigajoule in wholesale contract negotiations.
Or seek an exemption by committing to additional supply in the short term and new investment in the medium term, to support reasonable prices and on reasonable terms.
So far, producers have committed a total of 564 petajoules in supply and investment to support the east coast gas market.
That’s a huge improvement from the gas supply crisis that the Government inherited –
And from the global gas price spike caused by Vladimir Putin’s illegal and immoral invasion of Ukraine.
But there is more work to do.
I’ve heard from the Energy Users Association and its members on the possibility of extending the Code to retail markets.
The ACCC is currently reviewing retailer behaviour and pricing practices, with a focus on gas supply to commercial and industrial users.
I look forward to receiving the ACCC’s advice in coming months and discussing the issue further with you, alongside my colleagues the Treasurer and the Ministers for Industry and Resources.
(20min delay)