Gas reports show importance of gas code for more reliable, affordable energy supporting 82% renewables

Dept of Climate Change, Energy, Environment & Water

AEMO’s latest Gas Statement of Opportunities (GSOO) report confirms the Albanese Government’s policies to secure affordable gas are working to mitigate projected supply shortfalls in coming years, but longer-term challenges remain.

The Australian Energy Market Operator (AEMO)’s improved gas supply outlook has been bolstered by the introduction of the mandatory gas Code of Conduct (the Code), with AEMO noting the Code is set to deliver “a total of 564 PJ of potential new domestic gas supply to 2033”.

When accounting for projects covered by the legally enforceable supply commitments under the Code, “annual supply gaps are forecast to be delayed by two years to 2028”.

That’s because the Albanese Government has taken strong action on supply and prices.

At the time of the election, the average east coast gas price was $31.76 GJ.

Under the Code with the $12 GJ price anchor, the average gas price this month to date is $11.63 GJ, and the average price over the year to date has been $11.54 GJ.

The LNP need to explain why they failed to support the Code to deliver more reasonably priced gas, when the Greens attempted to disallow it in the Senate in November last year.

While we know the Gas Code is improving both the supply and pricing outlook, AEMO confirm that there’s more to do particularly over the medium to long term.

Of course, the Code is not the only policy the Albanese Government is delivering to boost better manage projected supply issues, we’ve also:

  • Worked with the states to expand AEMOs powers to manage seasonal and localised gas supply shortfalls, including boosting domestic gas storage.
  • Reformed the Australian Domestic Gas Security Mechanism to ensure its fit for purpose

And we’re also developing the Future Gas Strategy, to ensure a sustainable and secure gas sector, consistent with achieving net zero emissions by 2050 and helping to boost reliability in a cleaner, cheaper more renewable grid.

Comments from Minister Bowen

“The Albanese Government’s plan is about delivering a more reliable, resilient, firmed renewable energy system, with the Gas Code shoring up domestic supply of gas to support the grid and Australian industry.

“The LNP need to explain why they failed to support the gas Code when the Greens tried to disallow it, which analysis after analysis shows is increasing domestic supply and driving down gas prices.

“The LNP ‘gas led recovery’ was more like a ‘gas-lit’ policy that failed to deliver affordable energy to Australian industry and our domestic energy market.”

/Public Release. View in full here.