As part of Australia’s gas-fired recovery, the government has committed to boost the east coast gas market across the entire supply chain.
This will be done through the three key areas of:
- unlocking supply
- delivering an efficient pipeline and transportation market
- empowering gas customers.
Affordable and plentiful gas will play a central role in strengthening the economy and Australian industry through the recovery from COVID-19.
The government will drive the gas-fired recovery through $58.6 million of new measures. These include:
- release of the National Gas Infrastructure Plan: Interim Report
- $38.7 million to support critical gas infrastructure projects to alleviate a forecast supply shortfall
- $3.5 million to design and implement the Future Gas Infrastructure Investment Framework. This will support gas projects identified by future National Gas Infrastructure Plans (NGIP).
- $5.6 million to strengthen the energy system planning framework by delivering a further NGIP in 2022
- $4.6 million to empower gas-reliant businesses to negotiate competitive contract outcomes
- $6.2 million for development of the Wallumbilla Gas Supply Hub in Queensland.
The National Gas Infrastructure Plan: Interim Report (Interim NGIP) focuses on the gas supply shortfall forecast for this decade.
The Interim NGIP provides a blueprint of infrastructure requirements for the east coast gas market to 2027. It identifies four infrastructure projects that are required to prevent the shortfall, including:
- two gas storage projects at Golden Beach and Iona in Victoria
- expansion of the South West Victorian pipeline
- an import terminal with the Port Kembla project considered the most advanced.
The $38.7 million of targeted support will accelerate these projects to final investment decisions (FID).
This measure also includes $5 million to work with the Queensland Government to deliver a pipeline pre-feasibility study for the North Bowen basin.
The Hon Angus Taylor MP, Minister for Energy and Emissions Reduction, said gas must be supplied to consumers at the right price, with infrastructure being key to delivery.
‘The government will not sit back and allow the shortfall to eventuate. The risk to the economy is too great,’ the Minister said. ‘Without action to address supply, industry and households will be faced with higher prices, disruptions in supply and unplanned outages.’