The Federal Government will look to speed up gas production and expand carbon capture and storage as part of its long-term gas strategy.
Releasing Australia’s Future Gas Strategy today, Federal Resources Minister Madeleine King said gas would play an important role in the transition to net zero by 2050.
The Strategy outlines a number of actions including preventing gas shortfalls by working with industry and state and territory governments to encourage more timely development of existing gas discoveries in gas-producing regions, implementing a “use it, or lose it” policy.
There is also a commitment to release more offshore sites for storage of our own and other countries’ CO2.
The strategy states the Government would “establish a new initiative on regional cooperation on transboundary carbon capture and storage which will provide options for energy security and carbon management solutions for our regional partners”.
Work will also be done to reduce gas-related emissions by working with industry and regulators to minimise venting and flaring of methane from operations and support households and businesses by working with the states and territories to manage pricing impacts and the Gas Market Code.
The Strategy is centred on six principles that will underpin Government policy on gas.
- Australia is committed to supporting global emissions reductions to reduce the impacts of climate change and will reach net zero emissions by 2050.
- Gas must remain affordable for Australian users throughout the transition to net zero.
- New sources of gas supply are needed to meet demand during the economy-wide transition.
- Reliable gas supply will gradually and inevitably support a shift towards higher-value and non-substitutable gas uses. Households will continue to have a choice over how their energy needs are met.
- Gas and electricity markets must adapt to remain fit for purpose throughout the energy transformation.
- Australia is, and will remain, a reliable trading partner for energy, including LNG and low emission gases.
Minister King said gas played a crucial role in supporting the economy, with the sector employing 20,000 people.
“Ensuring Australia continues to have adequate access to reasonably-priced gas will be key to delivering an 82 per cent renewable energy grid by 2030, and to achieve our commitment to net zero emissions by 2050.
The Future Gas Strategy is available on the Department of Industry, Science and Resources website.