Australian Energy Producers Propose Strategies to Boost Natural Gas Supply

Australian Energy Producers (AEP), representing the country’s upstream oil and gas exploration and production industry, has put forth a set of proposals aimed at enhancing Australia’s natural gas arsenal.

Submitting a prospective reservation policy to the Gas Market Review as part of their efforts to increase gas supply to the domestic market, Australian Energy Producers emphasized the need for a collaborative approach to ensure sustainable solutions for the future of the gas market.

Samantha McCulloch, Chief Executive of Australian Energy Producers, stated: “The Government’s Future Gas Strategy highlights the importance of natural gas for Australia’s energy security. We need a robust east coast gas market that can deliver reliable supply and provide investment certainty.”

McCulloch stressed the significance of a well-designed reservation policy linked to new supply to support a competitive domestic gas market. She emphasized the role of the LNG sector in maintaining energy security and supporting investment in new gas supply.

She further added: “Reforms to encourage investment, streamline approvals, and enhance pipeline and storage capacity are crucial. With the right policies, we can ensure ample gas supply for Australia’s energy needs and maintain our competitive advantage.”

Australian Energy Producers proposed a three-track approach to ensure a reliable gas supply, including establishing a prospective east coast gas reservation, sunset existing market mechanisms, and promote gas exploration programs.

Actions to accelerate gas supply include fast-tracking development-ready projects, streamlining approvals, and increasing pipeline capacity. Streamlining market operations and harmonizing reporting are also identified as key steps for market efficiency.