Australia’s Future Gas Strategy: Urgent Investment Needed to Support Net Zero Transformation
The Australian government’s Future Gas Strategy consultation paper has highlighted the urgent need for investment in new gas supply to avoid future shortfalls and support the net zero transformation in Australia and the region, according to Australian Energy Producers (AEP). The release of the paper marks the beginning of an important planning process to ensure energy security and affordability in households and businesses.
The discussion paper, which aims to support Australia’s energy system in reaching 82% renewables by 2030, outlines the need for cleaner, cheaper, and more reliable energy while maintaining the country’s reputation as a trusted energy supplier to the region. New analysis revealed in the paper shows that future gas demand will surpass supply in the east and west coast gas markets until 2034 and 2032 respectively.
Samantha McCulloch, CEO of AEP, emphasized the vital role of gas as a partner to renewables in electricity, a feedstock to Australian manufacturing and industry, and the importance of gas exports. McCulloch stated that gas is the safety net for the energy system and the key to providing reliable and affordable energy during the net zero transition.
To avoid shortages, McCulloch stressed the urgency of investing in new gas supply, with a focus on efficient and robust regulatory approval processes. The Future Gas Strategy serves as a platform to showcase the significant contribution of the gas industry to the economy, national well-being, and its role in achieving net zero.
McCulloch also highlighted the importance of carbon capture, utilization, and storage (CCUS) technology in decarbonizing gas production and hard-to-abate sectors, as well as the emerging opportunities in low-carbon hydrogen. She believes that the gas industry’s involvement in CCUS and low-carbon hydrogen will play a crucial role in driving the country towards net zero.
In conclusion, the Future Gas Strategy consultation paper underscores the need for immediate investment in new gas supply to avoid future shortfalls and support the net zero transformation in Australia. It emphasizes the significant role of gas in partnering with renewables, supporting industries like manufacturing and mining, and the importance of CCUS and low-carbon hydrogen in achieving energy security and emissions reduction goals.
