Importance of Natural Gas
Natural gas plays a vital role in supporting reliable, affordable energy at home and around the world. It helps keep power systems stable, supports essential industries, and underpins the growth of renewable energy systems by providing flexible, on-demand supply when needed.
Gas secures Australia’s energy reliability
- Gas powered generation continues to play a crucial role in the National Electricity Market as a back-up source during periods of low coal or renewable generation availability1.
- Gas powered generation is already playing a crucial role in maintaining electricity system reliability during infrequent periods of widespread low renewable generation – such as extended ‘dark and still’ events – as well as providing essential system security services that support overall grid stability1.
- Without gas, the electricity grid would struggle to meet peak Australian energy demand2.
Gas remains as an integral fuel for Australia’s energy future
- 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 sector1.
- We cannot turn off Australia’s gas without significant adverse impacts on Australians and our region2.
- Gas supports industries like food processing, manufacturing and steel production as they transition to lower emissions2.
New gas supply is needed to avoid shortages
- 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 20301.
- The Australian Energy Market Operator has also 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’1.
Gas matters for Australian households and businesses
- Around 5 million Australian homes rely on gas for cooking, heating and hot water2.
- Gas has powered Australian homes and businesses for decades and remains a key part of daily life2.
Gas underpins Australia’s role as a reliable energy partner
- Australia is one of the world’s leading LNG exporters, supporting energy security for our trading partners2.
- LNG exports help millions of households and businesses around the world access reliable energy2.
- International investment in Australia’s LNG industry exceeds $398 billion, reflecting its global importance2.
