The role of gas will change as the world decarbonises. Australia requires a clear long-term strategy to help governments, industries and communities make decisions.
Australia’s oil and gas sector supports economic prosperity at home and for our trading partners. It also contributes to greenhouse gas emissions and climate change.
Future Gas Strategy
The Future Gas Strategy will outline our approach to managing gas through the energy transformation.
The strategy’s key objectives are to:
- promote Australia's energy security and affordability
- maintain Australia’s trade relationships, ensuring we remain a reliable and trusted supplier of Liquefied Natural Gas (LNG) to our region
- support decarbonisation of the Australian economy, including meeting our national climate targets of 43% reduction in emissions below 2005 levels by 2030 and net zero by 2050
- help our trade partners on their own paths to net zero.
To develop the strategy, we will investigate the supply-demand balance of gas to 2050. This means where, when and how much Australian gas is needed.
We’ll consider the needs of all market participants, including:
- gas producers
We’ll also consult publicly and seek input from:
- state and territory governments
- market participants
- peak industry bodies
- community groups.
We will welcome feedback from anyone with an interest in the role gas could play in the future, including our trade and investment partners.
Why we need a Future Gas Strategy
Australia uses natural gas as:
- an essential energy source for households and industry
- a direct input for many manufacturing processes.
- are a major employer for some regional communities
- contribute royalties and revenue
- drive national productivity.
The Australian Energy Market Operator (AEMO) forecasts that gas-generated power will play a key role in our energy system to 2050. The Australian Government’s target of an 82% renewable electricity system by 2030 relies on gas and gas storage to support firming of the electricity system.
Some sectors of the economy, like residential and commercial users, will be able to reduce their gas use through efficiency and electrification. But forecasts show other sectors, like heavy industrial users and manufacturers, will continue needing gas through to 2050.
Gas supply is decreasing faster than demand – at home and abroad.
The Australian Competition and Consumer Commission (ACCC) and AEMO have forecast domestic supply shortfall in the east and west coast gas markets this decade.
The International Energy Agency forecasts global net gas demand will increase to 2030. The strongest and most sustained growth in Australia’s key LNG markets will be in Asia. Australia’s LNG provides important flexibility to global energy markets. This is important for regional energy security. It will also support the energy transition across our region, as many Asian economies are using gas to support electrification and retire coal-fired power generators.
This means we need a clear long-term plan for gas to:
- maintain our domestic energy security
- realise our potential in the regional energy transformation
- support Australia’s energy system to become cleaner, cheaper and more reliable during the transition to net zero.
The Future Gas Strategy will help everyone who relies on gas to make long-term decisions while helping us meet our obligations under the Paris Agreement.