The Australian Government has solidified the energy security of its east coast market through new gas supply deals, ensuring a steady transition from coal to cleaner energy sources.
Under the government’s gas code rules, more than 260PJ of gas will be made available up to 2033 through the agreements signed with Esso and Woodside.
The gas, enough to power gas-fired power stations for approximately two and a half years, will be directed to southern demand centres, which are at risk of seasonal shortfalls.
As per the announcement, the goal is to maintain a sufficient domestic supply to exert downward pressure on gas prices.
These latest commitments build on previous deals from November 2023 with Australia Pacific LNG (APLNG) and Senex Energy, backed by Posco International of South Korea.
APLNG and Senex Energy agreed to provide up to 300PJ of gas by 2030.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below formBy GlobalData
Despite Australia’s capability to produce more gas than required for domestic consumption, the majority is earmarked for export.
The Labor Government, as reported by Reuters, has set a target for 82% of the country’s power to come from renewable sources by 2030.
Australia’s Minister for Climate Change and Energy, Chris Bowen, said: “We know that gas is critical to supporting a lower-cost, more renewable grid as ageing coal exits, and to support Australian manufacturing – which is why we have delivered this code to shore up energy reliability and affordability after a decade of chaos.
“The Albanese Government’s Gas Code has now delivered commitments for gas supply that is equivalent to what is needed for powering east-coast gas power stations for five years.”
Australia’s Minister for Resources, Madeleine King, said: “Gas is essential to supporting the nation’s energy grid and the reliable supply of gas is crucial to keeping energy prices down for households and businesses.
“Gas is our insurance policy for the energy grid as we move to cleaner and greener renewables. Gas is also indispensable in the processing of critical minerals and technologies such as wind turbines and solar panels.”