Joint media release with Minister for Climate Change and Energy the Hon Chris Bowen.
The Albanese Government has secured more Australian gas at reasonable prices for Australia’s east coast gas users, through a new supply deal with Walloons, part of Shell.
An additional 40 petajoules will be made available for the domestic market for gas power generation between now and 2027 though an enforceable supply commitment with Walloons under the Albanese Government’s Gas Code of conduct.
Today’s announcement is in addition to commitments made by Esso, Woodside, Senex and APLNG, and brings the total volume of enforceable gas supply commitments secured for households and businesses through the Gas Market Code to more than 600PJs.
In March the Australian Energy Market Operator acknowledged the beneficial impact the Albanese Government’s Gas Code was having on the supply outlook, particularly in key Southern demand areas.
AEMO confirmed the legally enforceable supply commitments have pushed back projected shortfalls by two years, to 2028.
This is the same Gas Code the Coalition disgracefully voted against, despite having been warned of gas shortages since 2013, and knowing that not having the Code would jeopardise domestic gas supply and keep prices high for households and businesses.
Gas is important to ensuring Australia’s increasingly renewable grid is reliable and affordable, by providing gas-powered electricity into the grid at key times to back up the flow of energy from solar and wind.
Using gas as a peaking energy source, means more clean, renewable energy can be brought into the grid, which pushes wholesale electricity prices down for consumers.
Walloons is a part of Shell’s QGC business. It is responsible for the marketing and trading of natural gas in the Australian gas market on behalf of the Queensland Curtis LNG (QCLNG) joint venture.
Quotes attributable to Climate Change and Energy Minister Chris Bowen:
“We are driving energy prices down for households and businesses by bringing more clean, cheap renewables into the grid and making sure we have enough future supply of reasonably priced domestic gas to keep our grid stable and reliable.
“After the former coalition government sat on their hands for a decade and did nothing to address the forecast supply gaps or rising gas prices, the Albanese Government’s Gas Code has now secured the equivalent of enough gas to power east coast gas generators for six years.
Quotes attributable to Minister Madeleine King, Minister for Resources
“The shift to clean, renewable energy is well underway but in the meantime we need gas to ensure our energy system remains stable, reliable and affordable.
“The enforceable supply commitments will ensure Australian gas is available for Australian users at reasonable prices and on reasonable terms and give producers the certainty they need to invest in supply.
“The Gas Code is an important part of the Albanese Government’s commitment to easing cost of living pressures.
“This commitment is in line with the Albanese Government’s Future Gas Strategy.”
