The Australian government has unveiled its Future Gas Strategy, outlining a comprehensive plan for the role of gas in the nation’s transition to net zero emissions by 2050.
The strategy, released by Minister for Resources and Northern Australia Madeleine King, emphasises the importance of gas in ensuring affordable and reliable energy for Australia while supporting global emissions reductions and maintaining its position as a reliable trading partner.
The Future Gas Strategy is built on six key principles:
- Commitment to supporting global emissions reductions, reaching net zero emissions by 2050.
- Ensuring gas remains affordable for Australian users throughout the transition.
- Recognising the need for new sources of gas supply to meet demand during the transition.
- Supporting a shift towards higher-value and non-substitutable gas uses while maintaining consumer choice.
- Adapting gas and electricity markets to remain fit for purpose throughout the energy transformation.
- Maintaining Australia’s status as a reliable trading partner for energy, including LNG and low-emission gases.
The strategy includes a detailed analytical report on gas demand and supply, developed through extensive work and consultation.
It outlines several actions to be taken, including:
- Working with industry and state and territory governments to encourage timely development of existing gas discoveries to prevent shortfalls.
- Collaborating with industry and regulators to reduce gas-related emissions, minimise venting and flaring of methane, and adopt technology-neutral approaches to exploration data acquisition.
- Managing pricing impacts and the Gas Market Code in partnership with states and territories to support households and businesses through the transition.
- Clarifying consultation requirements for offshore resources activities and pursuing benefit-sharing with First Nations peoples.
- Promoting geological storage of CO2 and supporting regional cooperation on transboundary carbon capture and storage.
Minister King emphasised the crucial role of gas in supporting Australia’s economy, particularly in industries like manufacturing, food processing, and refining of critical minerals.
She highlighted that gas will be essential for firming renewable power generation and will remain necessary in hard-to-abate sectors until alternatives are viable.
The Australian Energy Producers welcomed the strategy, noting its importance in providing clear direction on national energy policy and supporting gas’s central role in the economy and energy transformation.
The industry emphasised the need for tangible actions to unlock new gas supply and ensure long-term energy security.
The Victorian Chamber of Commerce and Industry also supported the strategy, highlighting the importance of gas for Victorian businesses and industries.
The Chamber emphasised the need for alignment between federal and state governments on the role of gas in achieving net zero emissions.
The Future Gas Strategy represents a significant step towards a sustainable energy future for Australia, balancing the need for reliable and affordable energy with the imperative to reduce emissions and combat climate change.
