LABOR BUNGLING LEADS TO YET ANOTHER WINTER GAS RISK

Shadow Minister for Resources and for Northern Australia, Senator Susan McDonald, has warned Australia is heading towards a preventable winter gas squeeze, following the latest ACCC gas inquiry which confirms tightening supply across the east coast.

The Resources Minister has today outlined a notice of intent to trigger the Australian Domestic Gas Security Mechanism (ADGSM) after yesterday’s concerning ACCC report shows the market could face a supply shortfall of up to 12 petajoules in the third quarter of 2026, depending on export behaviour. It also highlights acute risks in the southern states, including a projected 16 PJ supply gap in July alone.

“The gas trigger is a last resort that was never used by the Coalition. Labor has to consider it because they’ve waged war on gas through neglectful policies, excessive red tape to get new projects off the ground, and consistent anti-investment signalling to businesses that could have started new gas projects here sooner,” Senator McDonald said.

“Australians have been repeatedly warned about tight supply but there has been no clear plan from Labor to bring more gas online,” Senator McDonald said.

“Now we have another approaching winter and yet another warning about shortages, but no action from the government to fast-track new supply projects.”

“Labor has left Australia exposed at the worst possible time,” Senator McDonald said.

“This report confirms that in the middle of winter, southern states will be scrambling for gas – relying on storage and supply from Queensland just to keep the lights on.

“Southern states have waged war on gas and again they’re relying on Queensland to get them out of trouble.”

Senator McDonald said the situation reflected a broader failure of energy policy.

“Instead of backing reliable domestic supply, Labor has created uncertainty and risk in the system,” she said.

“The Albanese Government has been hostile to gas and has continued pursuing crazy emissions targets with no plan to safeguard energy security. As we’ve seen with the fuel and fertiliser crisis, they have been asleep at the wheel, ignoring warnings and then bungling the response. Australian households and businesses are being left to carry the consequences.”

The Coalition established the ADGSM in 2017 as a ‘backstop’ to manage exports in case of a domestic shortfall and to ensure there is sufficient natural gas to meet the needs of Australians, particularly if there is a gas supply shortfall forecast.

ENDS