A new study underscored the Australian gas sector’s contribution to the nation, with over $121 billion boost to the economy recorded last year, a 42% increase from the previous year, according to Gas Energy Australia.
“The latest data on the gas sector’s economic footprint, nationally and on a state-by-state basis, shows that it is a huge supplier of local jobs, a major economic driver and a vital component in making industry trick, while affording families much-needed flexibility and reliability with AEMO, yet again, calling future electricity supply into question,” Gas Energy Australia CEO Brett Heffernan said.
The economic analysis conducted by ACIL Allen for Gas Energy Australia confirms last year’s forecasting, with gas contributing $121.17 billion in domestic economic activity, accounting for 5.25% of GDP (up from 3.4%).
“This footprint underscores the opportunity and need for gas to continue to fill family, business and industry needs, especially the growing role of the LPG sector,” Heffernan stated.
“It’s significant because LPG is uniquely able to decarbonise. It has eight paths to achieve net zero or, indeed, actual zero emissions gas. From as early as 2026 bioLPG, a by-product of sustainable aviation fuel production, will be available in Australia. But, over the course of the transition to 2045, renewable ‘actual zero’ synthetic LPG, made from green hydrogen and CO2 from the atmosphere, will replace all conventional LPG,” he explained.
He said the technology offers a significant solution to the high costs associated with unreliable electricity, ensuring that existing appliances will reach net zero in the short term and actual zero by the 2040s.
“BioLPG and rLPG are ‘drop-in’ replacements for conventional LPG. That means no extra capital costs to homeowners, businesses or anyone using it. Existing cylinders, pipes and appliances require no changes,” he added.
The ACIL Allen report’s employment data also reveals tremendous development, with Australian gas producing over 17,000 additional full-time jobs during the year, totalling 258,779 local livelihoods reliant on gas.
“Australia’s future will need to be built with gas and, increasingly, by renewable net zero and actual zero gases,” Heffernan said.
“While gas production is the major economic driver at over $85 billion and almost 97,000 jobs, the report demonstrates the importance of gas to Australia’s electric power generation and irreplaceable role in manufacturing,” he added.
The report shows that gas contributes:
- electricity generation: $5.59 billion (up from $4.11 billion the previous year) and 20,004 jobs (up from 12,289), and
- high temperature manufacturing: $5.792 billion (up from $5.14 billion) and 29,372 jobs (up from 24,205).
Heffernan said Australian governments are realising that electricity alone is insufficient and are recognising the importance of having multiple renewable energy competitors.
“While LPG is a relatively small part of the gas landscape at just over $5 billion in economic activity (up from $3.6 billion last year), while supporting 20,500 jobs (up from 16,154), it is growing and can make significant inroads on Australia’s carbon footprint,” he stated.
“Based on current domestic demand, replacing all conventional LPG with synthetic actual zero renewable LPG by 2045 will reduce CO2 emissions by over 509,000 tonnes every year. All while continuing to deliver families, businesses and industry the gas they know, trust and can rely on.”
