The federal government’s releasing its future gas strategy today saying more of the resources will be needed in the decades ahead, as it will be crucial in decarbonising Australia’s electricity grid and helping other nations.
In 2022, Australia exported $91 billion worth of liquid natural gas, supplying 40 per cent of Japan’s gas needs, 36 per cent of Taiwan’s and 24 per cent of Singapore’s.
Resources Minister Madeline King says the federal government is committed to achieving net zero emissions by 2050, and the country will need gas to get there.
“There will be a need for gas, because there are many uses for gas that we can’t substitute. We hope to substitute, but we don’t know when that will be possible,” she told the ABC’s AM.
“What I’m talking about is the processing of critical minerals or some high heat manufacturing uses, which we hope we’ll be able to use hydrogen for, and we’re investing in the research in that, and so are other countries as well, and companies.
“But in the meantime, you can’t have wishful thinking that might happen without having the backup, which is gas.
“So the 5 million households around the country that rely on gas for their heating and energy. While we transition to electrification, that gas needs to be affordable. And to be affordable, you need reliable supply.”
The gas industry welcomes the new strategy and says it will provide more regulatory certainty, progress new supply projects, and restore investor confidence.
“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,” Australian Energy Producers’ chief executive Samantha McCulloch said in a press release.
“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.”
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