Australian Energy Producers calls for new gas supply

Australian Energy Producers, Australia’s peak oil and gas industry body, has called for new gas supply to be prioritised in order to avoid forecast shortfalls and put downward pressure on prices, it said on November 28.

In a submission to the Future Gas Strategy consultation process, the industry body said that natural gas is a secure, affordable, and low-carbon energy source that is essential for Australia’s economy and its transition to net zero emissions. The group also highlighted the role of natural gas in powering Australian industry, such as manufacturing and mining, and in processing critical minerals required for net zero technologies.

With domestic shortfalls predicted in coming years and LNG demand across Asia forecast to increase, Australian Energy Producers CEO Samantha McCulloch said the national strategy was welcome and should recognise the clear need for new natural gas supplies.

“New gas supply is the pathway to affordable and reliable energy for households and businesses” McCulloch said.

“Policy settings should encourage investment while barriers such as the uncertainty gripping the broken offshore regulatory approvals system need to be removed," she added. “The Future Gas Strategy needs to provide clear policy direction for the development of the nation’s abundant gas supplies to deliver the domestic energy and economic security our industry is committed to and our country needs."

McCulloch also highlighted the significant economic benefits of natural gas for Australia. 

“This industry delivered A$93bn of LNG earnings last financial year – as well as over A$16bn in taxes and royalties to help fund public services and infrastructure and A$45bn in expenditure directly with Australian businesses," she said.  

McCulloch said: “Australia has a competitive advantage to use net zero to secure substantial economic and emission reduction benefits through natural gas while underpinning our domestic energy security."