The Australian Government’s Future Gas Strategy recognises the critical role of natural gas for Australia’s energy security in a net zero economy to 2050 and beyond, and that continued investment in new gas supply is needed.
This was the joyous reaction of Australian Energy Producers Chief Executive Samantha McCulloch who said the Strategy, announced last week, should now provide clear direction on national energy policy that supports the central role of gas in the economy and Australia’s energy transformation.
“The Future Gas Strategy sends a clear message that gas has a critical long-term role in Australia’s energy mix to provide reliable and affordable energy to homes and businesses and drive domestic manufacturing to 2050 and beyond,” Ms McCulloch said.
“The Strategy needs to be backed by clear, tangible actions that urgently unlock new gas supply to address looming shortfalls and provide an unequivocal signal to the market that Australia is committed to ensuring sustainable gas supply to the Australian economy and the region.”
Ms McCulloch said the Strategy laid a foundation for meaningful reforms to the Australian Government’s gas policy to provide more regulatory certainty, progress new supply projects and restore investor confidence and Australia’s reputation as a reliable energy partner.
“The Future Gas Strategy provides an opportunity to reset gas policy in Australia,” Ms McCulloch said.
“A Future Made in Australia is not possible without natural gas. Delivering on the Strategy’s objectives will require a whole-of-government response and national leadership to bring state governments on board.” Ms McCulloch said the Government’s commitment in the Strategy to remain a “reliable and trusted trade and investment partner” needs to recognise there will be significant growth in LNG demand in our region to 2050.
“In addition to the significant economic and strategic benefits from Australia’s LNG trade with countries like Japan, Korea and Malaysia, our LNG exports also have an important role to play in the energy security and decarbonisation of our region.
“It would be short-sighted and at odds with Australia’s commitment to global emissions reductions if we were to stifle LNG exports and miss out on the significant economic opportunity on our doorstep.”
Ms McCulloch said industry would continue to work with the Government to ensure the Strategy translates to tangible outcomes that ensure Australia’s long-term energy security.
“The success of the Strategy will be determined by whether it delivers meaningful policy reforms that address the barriers to new gas supply and investment, and that recognise the central role of gas in the energy transformation,” Ms McCulloch concluded.
Chorusing its approval in synch with AEP was the Australian Resources and Energy Association (AREEA) welcoming support for gas sector
Steve Knott, Chief Executive Officer of AREEA, said the Association welcomes the Federal Government’s commitment of support for the nation’s gas sector.
“It’s long overdue recognition that gas has a significant role to play in the energy transition and Australia’s future,” Mr Knott said.
“The world’s energy security depends crucially on the ongoing role of gas in the energy mix. For Australia, this has broader implications than reserves of resources and the technical capacity to extract them.”
Knott added that by strengthening international production, stable policy settings for a competitive investment environment must be a top priority.
“Excessive regulation, tax, red tape and new and unnecessarily complex industrial relations transaction costs only make it more difficult to do business, deterring investment and hurting productivity and jobs,” he said.
“AREEA will work closely with the Government to ensure the wider regulatory system removes barriers and puts Australia in a prime position to secure investment in new gas projects.”
Oil and gas industry welcomes Queensland’s energy security commitment
In a separate celebration Australia’s oil and gas industry welcomed the announcement by the Queensland Government to invest in energy security with $21 million to support the fast-tracking of four new gas projects in the Bowen Basin.
AEP Queensland said The New Frontier Gas Exploration Program is important to secure the new gas supply that keeps the lights on for Queenslanders, while delivering more wide-ranging benefits across communities.
“The funding will boost the already 30,000 jobs along the supply chain in Queensland, and the billions of dollars spent with thousands of local Queensland suppliers and contractors,” Australian Energy Producers Queensland Director Keld Knudsen said.
The announcement came hot on the heels of the Federal Government’s Future Gas Strategy release.
“In the same week the Future Gas Strategy recognises the critical role of natural gas for Australia’s energy security in a net zero economy to 2050 and beyond – and that continued investment in new gas supply is needed – we welcome the Queensland Government’s support for the gas sector,” Mr Knudsen said.
“This investment demonstrates leadership and understanding of the key role gas will play in the energy mix to provide reliable and affordable energy to homes and businesses and drive domestic manufacturing to 2050 and beyond.”
“We encourage the Queensland Government to build on the program and expand this important initiative, making it permanent across the state to stimulate additional investment and encourage new gas supply in other regions.”
Mr Knudsen said the funding will drive innovation in exploration technologies, tapping into the sector’s innovation and expertise, ultimately bringing more Queensland gas to market.
“This underscores the state’s dedication to meeting current and future energy demands sustainably and responsibly,” he said.’
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17/05/2021