Government moves to boost gas supply – again

The federal government has turned – again – to its Gas Code of Conduct to boost availability and cut the cost of gas to consumers and industry.

Energy minister Chris Bowen announced that 260 PJ of gas will be made available between now and 2033 through two new enforceable supply commitments with Esso and Woodside under the code’s exemptions framework.

This would be sufficient to power east-coast gas-fired power stations for around two and a half years.

Bowen said: “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.

“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.”

Today’s announcement follows similar commitments made by Senex and APLNG announced in November 2023 and brings the total volume of gas secured through the Gas Market Code commitments to 564 PJs.

“Peter Dutton and his No-alition should be ashamed for having risked these commitments and energy security for households and businesses with their lack of support for the Code in the Parliament.”

Bowen said in a statement that gas was critical to supporting reliability and affordability of the increasingly renewable grid, by providing peaking and firming.

“This ensures households and industry can increasingly benefit from downward pressure on wholesale electricity prices that solar is already bringing.

“…The supply commitments announced today will directly feed into southern demand centres previously identified as being at particular risk of seasonal shortfalls and ensure there is sufficient domestic supply to keep the downward pressure on gas prices.”

Other exemption applications under the Gas Market Code are also being assessed.

Further reading:
Gas Code aiming to secure domestic gas supplies now law

Picture: Exxon Mobil/Esso: enforceable commitments