LABOR FOLLOWING, NOT LEADING ON GAS

The Coalition has advocated for a prospective domestic reservation of Australian gas for Australians.

However, we have little faith that the Government can deliver the gas that is needed in the East Coast to prevent the looming gas crisis and still encourage investment in the sector.

Under Labor, Australia’s share of global gas investments has fallen from 40 per cent to just a 15 per cent share, according to recent analysis from Wood McKenzie.

Labor’s latest intervention into Australia’s domestic and international gas market risks creating significant damage to our reputation as an energy supplier to our trading partners who currently supply diesel.

Labor has announced they will abandon the gas trigger and Heads of Agreement before they have even finalised the design of a new reservation, weakening the government’s ability to ensure Australia gets the supply it needs amid expected shortfalls prior to this policy commencing.

It also risks the viability of our smaller Australian gas companies who do not export, exclusively supply the domestic market, and compete for investment, as multi-nationals will now have greater control over domestic gas supply.

This also raises questions about whether there’s sufficient infrastructure in place to facilitate the flow of gas to the south.

What is more, it does nothing to address the lack of new exploration of gas, driven by Labor’s lack of release of gas acreage, which is desperately required to meet structural shortfalls predicted by 2030.

Shadow Resources and Northern Australia Minister Susan McDonald said regional communities will stand to lose as Labor commands Queensland companies to export gas to failing southern states – and miss out on royalty payments as a result.

“Queenslanders get it in the neck, this means less royalties for them, because Victoria and New South Wales can’t keep their own lights on as a result of negligent energy policies,” Senator McDonald said.

Shadow Minister for Energy and Emissions Reduction Dan Tehan said that there needs to be more Australian gas for Australians, but you cannot trust Chris Bowen and Labor to deliver that without destroying the gas market.

“The supply problem in the East Coast gas market is caused by the failure of the Victorian Labor Government to release areas for gas exploration,” Mr Tehan said.

“The Coalition took to the last election the need for a domestic gas reservation policy but Labor’s failures with energy policies provide no confidence that their policy will deliver affordable gas for households and industry and still allow for the gas companies to invest in new exploration and production.”

Labor’s consistent failures on gas have been clear:

• There has been just one offshore acreage release since Labor came into government in 2022 off Victoria, with stringent ‘no seismic’ conditions attached to it, hampering real drilling projects.
• Last week, the New South Wales Government announced the opening of new areas for gas exploration with proposals assessed requiring alignment with the ‘state’s emissions targets’, closing a door before it even opens.
• Labor has done nothing to speed up approvals of new projects including, changes under the EPBC to exclude oil and gas from being fast-tracked, the Safeguard Mechanism carbon tax, and a dirty deal with the Greens to remove clarification on consultation under the OPGGS Act in exchange for changes to the PRRT legislation.

Throughout years of the Labor Government’s ineffectual interventions, they have failed to provide any stable policy, clarity to industry or a secure regulatory framework that encourages investment in additional supply.

“Companies are telling me their investors remain deeply concerned that distortionary market rules are being considered when other states have failed to develop known gas reserves – and Victoria is running out of gas in an election year,” Senator McDonald said.

The Coalition’s record on gas is clear – in government we put in place measures to support new supply and address shortfall risk, but Labor has torn these plans up, and Australian families and businesses are losing out as a result.

The Coalition will examine the details of today’s announcement and consider the relevant legislation in due course.

ENDS