Australia’s energy producers have endorsed the government’s new Future Gas Strategy aimed at bolstering natural gas development but cautioned that the country is still at risk of gas supply shortfalls this decade amidst volatile global markets due to ongoing conflicts.
Meg O’Neill, chair of the Australian Energy Producers, expressed the group’s support for the Future Gas Strategy, which was released earlier this month.
The strategy underscores the need for new gas sources to satisfy both domestic and export demands during the energy transition.
O’Neill’s comments are part of a speech she is scheduled to deliver at an Australian gas industry conference in Perth on Tuesday.
“This is a challenge Australia faces this decade. As the Future Gas Strategy points out, without action, the east coast of Australia faces projected shortfalls by 2028 and the west coast by 2030,” O’Neill is expected to say.
She added that such shortfalls could exacerbate market volatility and increase prices for households and businesses.
“The best solution to a shortage is always supply, supply, supply… And we welcome acknowledgment in the Strategy that we’ll need the right regulatory settings to do so,” she emphasized.
Australia, which was the world’s second-largest exporter of liquefied natural gas (LNG) last year, formulated the Future Gas Strategy following criticism of short-term measures aimed at boosting domestic gas supply and lowering energy prices.
These measures included price caps and export limits from the country’s three east coast projects. The industry raised concerns that these interventions might harm long-term energy investments.
Despite producing more gas than needed for domestic consumption, Australia exports the majority of its supply. In 2023, the country exported 80.9 million metric tons of LNG, with China, Japan, and South Korea being its largest customers.
However, Australia’s energy market operator warned in March that the southeast region faces potential gas shortages during next year’s winter months due to demand potentially exceeding supply. The operator called for urgent new investments to avert any possible shortfalls.
