Why does Australia need gas for the future?

The Federal Government, Australian Competition and Consumer Commission (ACCC) and the Australian Energy Market Operator (AEMO) have all recognised that natural gas remains as an integral fuel in Australia’s energy future:

• The Federal Government’s Future Gas Strategy notes that during Australia’s transition to a net zero emissions future, gas will continue to be used by Australian households, businesses, and industry, and to support the operation of the electricity sector. Source: Department of Industry, Science and Resources (2024), Future Gas Strategy, p.17.
• The ACCC Gas Inquiry 2017-2030 recognises that: ‘Natural gas will play a critical role in Australia’s transition to lower emissions. As renewables are increasingly relied upon for electricity generation, gas will be required to support energy security, reliability and affordability, while remaining an important source of energy and feedstock for residential, commercial and industrial users’. Source: ACCC (2025), Gas Inquiry - September 2025 Interim Report, P. 1.
• As Australia transitions to a net zero emissions future, gas will remain essential for households, businesses and industry, and to support the operation of the electricity sector. Source: Australian Energy Market Operator (2026), Gas Statement of Opportunities, p. 3.

Why are new sources of gas supply critical for the Australian domestic market?

It is well documented that new sources of gas supply are critical for the Australian domestic market:

• New sources of gas supply are needed to meet demand during the economy-wide transition. Future Gas Strategy | Department of Industry Science and Resources
• The Australian Energy Market Operator has stated that: ‘While the scale of gas consumption remains uncertain through the energy transition, particularly gas usage for electricity generation, all scenarios identify the need for new supply investments to maintain supply adequacy’.  Source: Australian Energy Market Operator (2026), Gas Statement of Opportunities
• From 2030, annual supply gaps are projected in each of AEMO’s scenarios under the majority of weather years simulated, even with the development of committed and anticipated gas supplies and expanded electricity developments that offset GPG needs. Source: Australian Energy Market Operator (2026), Gas Statement of Opportunities (GSOO), p. 70.
•  The Australian Energy Market Operator’s 2026 Gas Statement of Opportunities forecasts gas shortfall risks during extreme peak day demand conditions from 2029 in southern Australia, with a need for additional supply in most scenarios from 2030. Source: Australian Energy Market Operator (2026), Gas Statement of Opportunities

Why does developing new domestic gas supply rely on large-scale investment from export projects?

New domestic gas supply relies on large-scale investment in export projects to develop gas fields:

• In recent years, approximately 25-30% of East-Coast domestic demand has been supplied by the LNG Export Industry in Queensland, including approximately 20% from APLNG.
• Arguments that Australia could divert gas developed for export fail to recognise the domestic gas market’s reliance on supply from these gas export projects, the nature of Australia’s trade and investment relationships and the role of Australian gas in our trade partners’ decarbonisation pathways.
• The ability to finance new supply investments relies on access to export market demand and scale, international capital, and the presence of competitive, clear, and stable investment signals. Source: APLNG Submission to Gas Market Review 2025.pdf