Australian Energy Producers call for action plan on new gas supply and renewed commitment to CCS technology

A powerful energy lobby group has called on the Albanese Government to make Australia a regional carbon capture and storage hub as it also presses the case for an urgent action to bring on crucial new gas supplies. In its 2024-25 Budget submission to be released on Monday, Australian Energy Producers said the Government must act to unlock new supplies on both the east and west coast of the country to get ahead of forecast shortages and offer price relief for users. It also wants a review into the energy needed for critical minerals processing to ensure there is sufficient gas that will be required to power the manufacture of the minerals crucial to global decarbonisation and net zero targets. AEP chief executive Samantha McCulloch said an action plan was needed to bring on new supply. “Whether it’s through streamlining environmental approvals or fixing the broken offshore regulatory system, Australia needs to move quickly to secure the economic, energy security and emissions reduction benefits of natural gas,” Ms McCulloch said. “The release of new offshore petroleum exploration acreage is long overdue and this annual process needs to get back on track to maintain our domestic and regional commitments.” AEP — which last year changed its name from the Australian Petroleum Production and Exploration Association — also wanted a renewed support of carbon capture and storage technologies, particularly as part of Australia’s future low-carbon hydrogen mix. The recommendation come amid a background of regulatory uncertainty for the gas industry, which has complained of environmental approval delays, and arguments that WA’s own gas policies — which sets aside 15 per cent of a gas exporter’s reserves for domestic use and bans the overseas sale of onshore gas altogether — are holding back the development of new projects. AEP also wants to set up an Australian LNG producer-consumer taskforce “to strengthen regional relationships and ensure Australia benefits from a potential 10-fold growth in Asian LNG demand”.