The Hon Chris Bowen MP, Minister for Climate Change and Energy
The Hon Madeleine King MP, Minister for Resources
The Albanese Government has signed an agreement to bring more Australian gas into the domestic market, improving local supply pressures for a further four years to 2029.
Commercial and industrial gas consumers will receive first preference for the new supply of up to 40PJ of affordable gas. The Government's Gas Code of Conduct means new supply will be offered at $12/GJ, indexed to CPI.
APLNG will now supply up to 10PJ of gas per year for four years, having agreed to extend the terms of its existing domestic supply deal under the Code, which was originally set to expire at the end of this year. This is expected to enable additional contracting for long-term domestic gas supplies. 10PJ of gas is enough to entirely support heating and cooking use in about 200,000 homes.
After a decade of ignored warnings from the ACCC and Australia's Energy Market Operator about supply shortages and failed promises from the Coalition for a COVID gas-led recovery, in just one term the Albanese Government has stepped in to now secure 644PG of enforceable supply commitments for domestic gas under its mandatory Code of Conduct which came into effect in 2023.
This is the same Code the Coalition disgracefully refused to support.
Legally enforceable commitments under the Code provide more affordable gas to the Australian market in the short to medium term and as more clean, cheap, renewable energy comes into the grid, gas firming will play an important role in ensuring system reliability.
The supply commitment will feed into key demand centres and help ensure sufficient domestic supply to keep downward pressure on gas prices.
For heavy industrial gas users, the Albanese Government's reformed Safeguard Mechanism requires them to meet a continually reducing emissions limit by reducing onsite emissions and offsetting any emissions above those limits.
Combined with our $1.4 billion decarbonisation investments through the Powering the Regions fund, this ensures Australia's heavy industry sector, which employs hundreds of thousands of people around Australia is supported to stay strong and competitive as it transitions to net zero.
Compliance with the Code is monitored by the Australian Competition and Consumer Commission.
Comments from Climate Change and Energy Minister Chris Bowen:
"This single deal with APLNG has secured almost as much gas for Australian users as the Coalition's Resources spokeswoman Susan McDonald has aspired to procure across her entire gas policy.
"It goes to show Peter Dutton's team don't understand Australia's energy and industrial needs and don't have a credible path forward to keep Australia growing and the lights on.
"Gas has an important role to play in our energy system as we transition towards 82 per cent renewables. Unlike coal or nuclear gas power generators can be turned on and off in a couple of minutes. And when it's off, it's zero emissions.
"The Gas Code has secured affordable gas for local businesses - will Peter Dutton rule out scrapping this code if elected?"
Comments from Resources Minister Madeleine King:
"The Albanese Government's gas policies are working to secure more affordable gas for households and businesses across Australia.
"These are the same gas policies that Peter Dutton and the Coalition have consistently voted against at every turn.
"In prioritising empty slogans over serious policy, Peter Dutton and the Coalition are proving they are simply not ready to govern.
"Gas will continue to play an important role in firming up renewable energy and supporting high-heat manufacturing."
