Households and businesses will have a choice over how their energy needs are met under a national gas plan, according to the federal government.
Australia has locked in gas for the electricity system, industry and exports through to 2050 under a future gas strategy released by Resources Minister Madeleine King on Thursday.
“Gas plays a crucial role in supporting our economy, with the sector employing 20,000 people across the country, including remote and regional communities,” Ms King said.
She said the sector would need continued exploration, investment and development of new gas fields to supply Australian needs and Asian economies.
“While we transition to electrification, that gas needs to be affordable, and to be affordable, you need reliable supply,” she said
One of Australia’s biggest exports, gas also supports manufacturing, food processing and refining of critical minerals that will help Australia and the world to lower emissions, she said.
Although the uses would change over time, gas would play an important role in backing up renewable power generation and was needed by heavy industry until alternative technologies become commercially viable, she said.
Storing carbon deep under the seabed is the bedrock of new gas with contentious carbon capture and storage (CCS) underpinning the sector’s continued expansion.
Acreage for offshore CCS and a new initiative on regional cooperation on storing carbon for regional partners is part of the plan.
PRINCIPLES FOR FUTURE GAS:
* Australia will produce and use gas while reaching 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 changes
* Reliable gas supply will gradually and inevitably support a shift towards “higher-value and non-substitutable” gas uses.
* 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.