The federal government has taken another step to ensure reliable and affordable gas supply for Australian households and businesses on the east coast.
A new supply deal has been struck with Walloons, part of Shell’s QGC business, to provide an additional 40 petajoules of gas to the domestic market for power generation between now and 2027.
The deal with Walloons is an enforceable supply commitment under the Australian government’s Gas Code of Conduct.
It brings the total volume of gas supply commitments secured through the Code to over 600 petajoules.
Previous commitments were made by energy companies Esso, Woodside, Senex, and APLNG.
In March, the Australian Energy Market Operator (AEMO) acknowledged the positive impact of the Gas Code on the domestic supply outlook, particularly in key southern demand areas.
AEMO confirmed that the legally enforceable supply commitments have pushed back projected gas shortfalls by two years, to 2028.
The secured gas supply plays a crucial role in supporting Australia’s transition to renewable energy sources.
Gas-powered electricity generation can provide reliable backup to the grid during periods of high demand or when solar and wind energy production is low.
By using gas as a peaking energy source, more clean, renewable energy can be integrated into the grid, ultimately driving down wholesale electricity prices for consumers.
Climate Change and Energy Minister Chris Bowen emphasised the government’s efforts to drive down energy prices for households and businesses through increased renewable energy and ensuring a future supply of reasonably priced domestic gas to maintain grid stability and reliability.
Minister for Resources Madeleine King highlighted the importance of gas in ensuring a stable, reliable, and affordable energy system during the transition to clean, renewable energy.
The enforceable supply commitments provide certainty for Australian gas users and producers, aligning with the Future Gas Strategy and commitment to easing cost-of-living pressures.
