- The Prime Minister has announced another budget measure, targeted at unlocking Australia’s gas supply and driving down electricity prices
- Scott Morrison wants to reset the East Coast gas market by unlocking supply and building a better pipeline and delivery model
- He’ll do this by re-negotiating with States and Territories for gas supply targets and spending close to $30 million on key gas basins
- The PM also wants to sign new agreements with the three east coast LNG exporters to shore up Australia’s supply and avoid shortfalls
- Additionally, the Morrison Government aims to establish an Australian Gas Hub in Queensland to trade LNG more fairly
- He said all of these measures would help increase Australia’s gas supply and ultimately drive down electricity prices
- The total package will cost $52.9 million and fits in with the Government’s wider $250 million JobMaker program
Prime Minister Scott Morrison has announced a new plan to overhaul Australia’s gas industry and drive down electricity prices.
The latest budget measure is expected to cost $52.9 million and aims to unlock more gas, shoring-up Australia’s supply and lowering the cost for consumers.
More gas
The first part of the Morrison Government’s plan involves getting more gas into the market, by unlocking five key gas basins across Australia.
These include the Beetaloo Basin in the Northern Territory and the North Bowen and Galilee Basin in Queensland — with $28.3 million to be spent on the projects.
The government also wants to negotiate new gas supply targets with States and Territories and has threatened to impose “use-it or lose-it” requirements on gas licenses.
Additionally, the Prime Minister will seek new agreements with the three East Coast LNG exporters to avoid too much gas being exported overseas and leaving Australia in a shortfall.
Better network
Once Australia is able to produce more gas, Scott Morrison will focus the Government’s attention on bettering the country’s domestic supply chain.
The government has promised to identify priority pipelines as part of a new National Gas Infrastructure Plan (NGIP) — which has a $10.9 million price tag.
The Prime Minister also highlighted an existing $250 million investment — part of his government’s wider JobMaker plan — in three critical pipeline projects which are expected to generate thousands of jobs.
These include the Marinus Link, Project Energy Connect and VNI West interconnectors.
“These links will help put downward pressure on prices, shore up the reliability of our energy grid and create over 4000 jobs,” Prime Minister Scott Morrison said.
Lower prices
Finally, the PM also committed to establishing an Australian Gas Hub, which will act as a central market for the fair pricing and supply of LNG.
“We’ll work with industry to deliver a gas hub for Australia that will ensure households and businesses enjoy the benefits of our abundant local gas while we hold our position as one of the top global liquefied LNG exporters,” the Prime Minister added.
“This is about making Australia’s gas work for all Australians. Gas is a critical enabler of Australia’s economy,” he continued.
The Gas Hub will be located at Wallumbilla in Queensland, which is already the country’s most well-connected gas hub.
Along with this, Scott Morrison has also vowed to pursue a voluntary industry-led code of conduct, to level the playing field between consumers and producers.
“As we turn to our economic recovery from COVID-19, affordable gas will play a central role in re-establishing the strong economy we need for jobs growth, funding government services and opportunities for all,” the PM said.
Today’s gas overhaul announcement follows a similar statement by Energy Minister Angus Taylor yesterday, where he vowed to shore-up Australia’s fuel supply.