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Australia requires ‘political will’ to boost investment in new supply and avoid gas shortfalls

April 12, 2024
in News
Australia requires ‘political will’ to boost investment in new supply and avoid gas shortfalls
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Home Fossil Energy Australia requires ‘political will’ to boost investment in new supply and avoid gas shortfalls

April 11, 2024,
by

Melisa Cavcic

Australian Energy Producers, representing Australia’s upstream oil and gas exploration and production industry, has called for encouraging energy policies to bolster investor confidence, sort out the regularity approvals logjam, and ensure energy security in the long term by unlocking new gas supply.

Illustration; Source: Australian Energy Producers

While the Australian Competition and Consumer Commission (ACCC)’s Gas Inquiry March 2024 Interim Report outlines that Australia’s gas industry continues to deliver on its commitment to the domestic market, it also highlights the southern states’ reliance on gas from the north to keep the lights on. The report, which examined the short-term outlook, pointed out that forecasted structural shortfalls from 2028 remain.

Commenting on this, Samantha McCulloch, Australian Energy Producers’ Chief Executive, noted: “The report shows how the gas industry is fulfilling its commitment to providing reliable energy to Australian homes and businesses. But there is only so much the sector can do by itself.

“Australia has abundant gas reserves but needs the political will to restore investment confidence and ensure timely approvals for much-needed new gas supply. Governments must recognise the critical role of gas in keeping the lights on as we transform the economy to net zero.”

Posted: 28 days ago

With this at the forefront, Australian Energy Producers underlines that the ACCC’s report, which estimated that east coast supplies would be 6PJ in surplus while examining the third quarter of 2024, reaffirms the industry’s role in providing “reliable and affordable” energy to Australian homes and businesses.

The report said: “The southern states are expected to need an additional 25 PJ of supply to avoid a shortfall in quarter 3 2024. This will need to be withdrawn from storage or be transported from Queensland or the Northern Territory to the southern states.”

Moreover, areas where investment is said to be stifled by bans and regulatory uncertainty, such as in New South Wales and Victoria, will rely on other states for gas supply, despite having untapped gas resources, based on the ACCC’s report, which also warned that its positive forecast was still reliant on regulatory approvals to mobilize investment in newly developed fields.

Posted: 4 months ago

McCulloch added: “Warnings about approval delays must be heard. Governments must act with a sense of urgency to avoid looming shortfalls and ensure new gas supply is available for the millions of Australian households and businesses that rely on gas.”

long read

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>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : OffshoreEnergy – https://www.offshore-energy.biz/australia-requires-political-will-to-boost-investment-in-new-supply-and-avoid-gas-shortfalls/

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