But Labor’s green-tinged left opposes new gas projects and is pushing to speed up the fuel source’s demise.
King said last year that thefuture gas strategy must ensure Australia’s gas production did not slip below the demand,which would cause supply disruptions and high prices.
“We need to ensure gas demand decreases faster than supply through the energy transition,” she said in October.
Australia is one of the world’s biggest gas producers,but southern states are heavily reliant on interstate supplies. NSW does not produce any gas and Victoria relies on dwindling supply from its Bass Strait fields.
King said NSW and Victoria’s best solution is to open new gas fields.
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“The most efficient and carbon-conscious means of accessing gas needed for the transition to net zero is to extract it closer to the places where it is needed.”
Both states rely on Queensland gas fields,but producers cannot simply ramp up domestic supply because they are locked into long-term export contracts into Asia.
That’s why private companies want to develop gas import terminals,which could ship liquefied gas to the east coast from Western Australia,Queensland or the international market.
Another complicating factor for NSW and Victoria is that the interstate gas pipeline network is running at capacity,so even if Queensland increased its supply it may not be available for the southern states.
King said import terminals may be an option if they are commercially viable. Projects are in development in NSW and Victoria,but the proponents have yet to demonstrate a viable business model.
Squadron Energy,part of Andrew Forrest’s Tattarang Group,is building what could become Australia’s first terminal capable of receiving LNG. Squadron saysconstruction is 90 per cent complete but it has so far been unable to sign offtake agreements with gas suppliers or electricity generators,which are crucial to its business model.
Viva Energy is proposing LNG imports at the site of its Geelong oil refinery, but a final investment decision on the project has been stalled by the approvals process,including the state government’s assessment of environmental impacts.
“If gas that has been liquified,shipped and delivered via an LNG import terminal can be cost competitive with pipeline gas,then it could play a role in our energy mix,” King said.
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Opposition Resources spokesperson Susan McDonald said the government had failed to boost gas supply despite repeated warnings from AEMO.
“Last year’s gas forecasts had East Coast shortfalls in 2027,and thanks to Labor’s abject failures,this forecast supply cliff has been brought forward to 2026,” McDonald said.
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