The Australian Government is enhancing its energy system by increasing the domestic gas supply, crucial for Australian manufacturing and supporting reliability as households and businesses increase low-cost renewables.
The Federal Government has announced two new supply commitments with Esso and Woodside, allowing over 260 PJ of gas to be made available between now and 2033, enough to power east-coast gas-fired power stations for approximately 2.5 years.
“We know that gas is critical to supporting a lower-cost more renewable grid as aging coal exits, and to support Australian manufacturing — which is why we’ve delivered this code to shore up energy reliability and affordability after a decade of chaos,” Minister for Climate Change and Energy Chris Bowen said.
“The Albanese Government’s Gas Code has now delivered commitments for gas supply that’s equivalent to what is needed for powering east-coast gas power stations for five years.”
The supply commitments announced today will directly support southern demand centres at risk of seasonal shortfalls, ensuring sufficient domestic supply to maintain gas price downward pressure.
According to Minister for Resources and Northern Australia Madeleine King, gas will play as Australia’s insurance policy for the energy grid as the country transitions to cleaner and greener renewables.
“Gas is essential to supporting the nation’s energy grid and reliable supply of gas is crucial to keeping energy prices down for households and businesses,” Minister King said. “Gas is also indispensable in the processing of critical minerals and technologies such as wind turbines and solar panels.”
“Importantly, this agreement underlines the continued importance of the Bass Strait in supplying and supporting the east coast energy network,” the Minister added.