The Australian government has unveiled its Future Gas Strategy, outlining a medium and long-term vision for the role of gas in the country’s transition to a net-zero emissions economy by 2050.
The strategy aims to secure affordable gas for Australia as it moves towards a more renewable grid while reaffirming its commitment to being a reliable trading partner.
Minister for Resources and Northern Australia, Madeleine King, released the strategy, emphasising that decisions on gas supply and production will be based on the best available information to support a future made in Australia.
The strategy is built on six key principles that will guide government policy on gas:
- Commitment to Global Emissions Reductions: Australia will reach net-zero emissions by 2050.
- Affordability: Gas must remain affordable for Australian users throughout the transition.
- New Sources of Supply: New sources of gas supply are needed to meet demand during the transition.
- Reliability: Gas supply will support a shift towards higher-value and non-substitutable uses.
- Market Adaptation: Gas and electricity markets must adapt to remain fit for purpose.
- Reliability as a Trading Partner: Australia will remain a reliable trading partner for energy, including LNG and low-emission gases.
The strategy also includes a detailed analytical report on gas demand and supply, produced after extensive consultation and research.
It outlines several actions to be taken, including preventing gas shortfalls, reducing gas-related emissions, supporting households and businesses through the transition, empowering First Nations peoples, and promoting geological storage of CO2.
Minister King highlighted the crucial role of gas in supporting the economy, with the sector employing 20,000 people across the country, including remote and regional communities.
“Ensuring Australia continues to have adequate access to reasonably priced gas will be key to delivering an 82 per cent renewable energy grid by 2030, and to achieve our commitment to net zero emissions by 2050.
“The strategy makes it clear that gas will remain an important source of energy through to 2050 and beyond, and its uses will change as we improve industrial energy efficiency, firm renewables, and reduce emissions,” said King.
She emphasised that ensuring access to reasonably priced gas will be key to achieving the country’s renewable energy goals and net-zero emissions commitment.
Gas currently supplies 27 per cent of Australia’s energy needs and represents 14 per cent of its export income.
The government has implemented measures such as the mandatory Gas Code of Conduct, a renewed Heads of Agreement with LNG exporters, and strengthened the Australian Domestic Gas Security Mechanism (ADGSM) to ensure affordable gas supplies.
The Future Gas Strategy is seen as critical for supporting manufacturing, food processing, and refining of critical minerals, which will help Australia and the world lower emissions.
Gas will also play a vital role in firming renewable power generation and supporting hard-to-abate sectors like manufacturing and minerals processing until alternatives are viable.
However, the strategy has faced criticism from communities impacted by climate change, with concerns raised about the environmental impact of further gas exploitation.
Groups like Bushfire Survivors for Climate Action and Community Disaster Action Group have expressed disappointment, calling for an immediate transition to renewables to protect communities from worsening disasters.
The Future Gas Strategy is available on the Department of Industry, Science, and Resources website for further details and public review.
