Albanese government launches review into gas policies
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The news: Potential future shortfalls in Australia’s gas supply will be under the microscope as part of a federal government review into the sector.
The context: Climate Change and Energy Minister Chris Bowen on Monday announced a “holistic review” of Australia’s gas market, analysing whether successive gas polices work effectively in tandem or could be strengthened.
That will include the Australian Domestic Gas Security Mechanism (introduced under the former Coalition government), the Gas Market Code and the heads of agreement with major east coast gas exporters (both introduced under the Albanese government).
The announcement was timed to coincide with the Australian Competition and Consumer Commission’s (ACCC) latest report into the sector, which found domestic gas supply was sufficient in the short-term but longer-term investment was needed.
The ACCC found an uptick in volumes of gas from producers and retailers. The average price under gas supply agreements dropped 2% in the second half of 2024 compared to the first half.
Bowen said the review would help deliver on the government’s 2024 Gas Strategy, which emphasised the continued importance of gas as Australia transitioned to net zero emissions by 2025.
The strategy left open the door for the government to, as a last resort, limit gas exports to ensure domestic supply.
What they said: “It’s critical that we use this review get the settings right in our gas market, ensuring we are securing affordable Australian gas for Australian use, while remaining a reliable energy exporter and delivering lasting energy security in our region,” Bowen said in a statement.
The source: Chris Bowen and Madeleine King media statement
