Gas plays a critical role in Australia’s economy.
Gas is also an important part of Australia’s future, because it will enable us to compete successfully in the global race for jobs and opportunities in a net zero world. The global shift to clean energy is Australia’s biggest opportunity for growth and prosperity.
Over the past year, my department has rigorously researched, modelled and analysed the future of gas. This work has been real-world tested through extensive consultation and peer-review. I am proud to publish this work alongside the strategy in a comprehensive analytical report.
The analytical findings are clear. Under all credible net zero scenarios, natural gas is needed through to 2050 and beyond, though its production and use will change over this period. Gas will be essential to the transition because our energy system needs gas to achieve net zero. Gas will be a transition fuel that firms renewable power generation and is required for manufacturing and minerals processing until such time as alternatives are viable. Gas can support our future made in Australia. However, the greenhouse gas emissions associated with gas must sharply decline and where gas use cannot be reduced, emissions must be increasingly abated and offset.
The Future Gas Strategy sets out the Australian Government’s approach to gas policy. The strategy uses evidence and data to establish 6 clear, enduring principles that will underpin future government policies and actions. It is vital for the whole community that discussion of gas and gas policy moves beyond unthoughtful slogans and centres on evidence-based principles.
We cannot rely on past investments in gas to get us through the next decades. We need continued investment in, and development of, gas supply and transport infrastructure to get us through the energy transition with thriving industries. To secure the clean, affordable and reliable energy Australia needs to compete in the global race for jobs and opportunities, and we need to capitalise on our natural resource endowment.
I want to make a point I have made many times before and will continue to make: Australia is and will remain a reliable and trusted trade and investment partner, including for liquified natural gas (LNG). Our trade partners have made large investments over decades in Australia’s resources industry. They are relying on Australian gas to transition their economies to net zero. Australia is broadening and deepening our existing energy partnerships into emerging industries like critical minerals, hydrogen, carbon capture and storage, and other clean energy exports. The strength of our relationships, based on mutual economic benefit and friendship, will endure.
I would like to thank and acknowledge the significant contribution from all who helped develop this strategy. I look forward to continuing to work closely with industry and communities as we work towards net zero and a future made in Australia. The road to both runs through the Australian resources sector.