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APGAMay 9, 2024 2:31:12 PM2 min read

Future Gas Strategy is a decisive step toward addressing Australian energy challenges

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The Australian Pipeline and Gas Association (APGA) welcomes the Federal Government’s foundational Future Gas Strategy to help guide the domestic energy system. The Strategy provides a base for further building blocks to ensure natural and renewable gases can play their vital role in Australia reaching net zero by 2050.

The Future Gas Strategy (FGS) recognises the critical role that gas plays in a range of applications in the short, medium, and long terms. It also identifies gas supply shortfalls articulated by industry and by the Australian Energy Market Operator (AEMO), and illustrates the enduring importance of natural gas and emerging role of renewable gases as a reliable partner to intermittent renewables as part of Australia’s energy transition.

In the 2024 Gas Statement of Opportunities (GSOO), AEMO plainly states that the investment environment for natural gas supply and infrastructure projects remains challenging and uncertain due to regulatory approval requirements, difficulty acquiring financing for natural gas projects, and market participants’
resistance to making long-term commitments in an uncertain investment environment.

The Future Gas Strategy identifies these challenges, and outlines a high-level approach to addressing them. Additionally, APGA recommends three building blocks to help enable delivery of the FGS’s key principles.

1. Inclusion of gas-fired generation in the Capacity Investment Scheme, Renewable Energy Transformation Agreements (RETAs) or alternative capacity scheme.
2. Amend the National Greenhouse and Energy Reporting Scheme (NGERS) to recognise and allow for the use of renewable gases in common-use infrastructure to help businesses and retailers begin to decarbonise their operations through carbon-neutral gases such as biomethane or green hydrogen.
3. Further develop and facilitate a fit-for-purpose investment and regulatory environment for upstream development and associated gas infrastructure.

APGA chief executive Steve Davies said the Future Gas Strategy underscores the importance of natural and renewable gases in ensuring the Government can deliver a present and a future that’s Made in Australia.

“We warmly welcome the enshrining of a key principle to deliver affordable gas supply, which will be vital for the long-term security of Australian businesses and the broader industrial economy,” Mr Davies said.

“This pragmatic Strategy builds on the empirical evidence outlined by AEMO, and other market participants, to articulate and set-out a pathway to address Australia’s energy issues – both today, and into the future.”

“We look forward to working with the Federal Government to ensure this Strategy can help turbocharge Australian industry, while also lowering costs and emissions for households and businesses.”

The Australian Pipelines and Gas Association (APGA) represents the owners, operators, designers, constructors, and service providers of Australia’s pipeline infrastructure, connecting natural and renewable gas production to demand centres in cities and other locations across Australia. Our members offer a wide range of services to gas users, retailers and producers and ensure the safe and reliable delivery of 28 per cent of the end-use energy consumed in Australia.

For further information or the opportunity to engage with Mr Steve Davies please contact:
Paul Purcell
Corporate Affairs Manager
0422 247 750



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