Energy expert says gas price drop from Queensland exploration 'not guaranteed' as Anthony Albanese government looks to unlock east coast gas reserve
The development of an east coast gas reserve could be on Anthony Albanese government's agenda as a looming investigation is revealed, as an energy expert has warned a fresh move to explore gas opportunities in Queensland may not necessarily benefit the domestic supply.
The Queensland government this week announced nine new areas, totalling about 16,000 square kilometres, will be available for gas exploration.
Queensland Premier David Crisafulli claimed opening up the state for gas supply will put downward pressure on power prices.
The state's Minister for Natural Resources David Last said only two of tenders will be left for domestic supply demands at this stage, leaving about 15,000 square kilometres of the total tendered area without domestic mandates and available for export.
However, an energy expert has said though the state government's move may drive gas prices down, it is 'not guaranteed".
Centre for Independent Studies director of energy research Aidan Morrison said it was 'critical' to determine whether more or less gas ends up being contracted for export than what the newly earmarked areas produced.
'If they develop more gas in Queensland, but sign contracts to export even more gas than what they can produce and use the domestic market to top up what they develop... that pushes up domestic prices, which flow through to electricity costs,' Mr Morrison told SkyNews.com.au.
"However, there could be substantial downward pressure on prices even if some of the gas is exported, particularly if this export meets Santos' current shortfall in their own production. It all depends on the balance - ensuring more gas is produced than is contracted for export."
It comes as Resources Minister Madeline King outlined a review of Australian domestic gas supplies that would soon get underway at a conference in Brisbane earlier this week.
'I will say publicly what I have said privately to industry – the review we are about the undertake is an opportunity to achieve important reforms in the national gas system,' Ms King said in her speech.
Energy sector sources have now signalled they are getting ready for the federal government to launch a viability study into developing a gas reservation on the east coast, according to AFR.
A spokesperson for the Resources Minister told the masthead 'the role of market bodies to ensure more gas is made available for Australians' will be looked at as part of the federal government's gas review.
'Queensland and Western Australia are our two biggest gas exporters and they both have state-based gas reservation schemes,' the spokesperson told AFR.
'Australia has a suite of mechanisms that ensure Australian homes and businesses have enough gas for heating, cooking and manufacturing.'
Meanwhile, the federal Labor government has this week approved a bid to extend the life of Australia's largest gas plant until 2070.
Environment Minister Murray Watt announced on Wednesday a proposed decision to approve pushing out Woodside's North West Shelf gas project from its original deadline of 2030.
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Senator Cox only informed Greens leader Larissa Waters of her decision to leave the party 90 minutes before her defection was announced. She will join the government ranks despite having made previous comments critical of Labor policy. Senator Cox had previously spoken out against Woodside's North-West Shelf gas project, which Labor on Wednesday granted an extension until 2070. Pressed on her previous opposition to the project, Senator Cox said she did not want to comment on the issue as the extension was still being provisionally approved. "Obviously, I will be working with the Labor government now to ensure that we tread a pathway forward in ensuring that there's a delivery of what's required for the Australian public, particularly for the West Australian public," she said. "I would need to look at the provisional approval that's been made by (Environment Minister Murray Watt)." 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"I feel reassured with my experience, my skills and my knowledge, I can continue to collaborate and build on the existing relationships with an already amazing team of Labor MPs across the country." Senator Cox, who was a member of the Labor Party before she joined the Greens, will be formally admitted into Labor on Tuesday. Mr Albanese said Senator Cox, the first Indigenous woman to represent WA in the upper house, would be a welcome addition to the government benches. "She wants to be part of a team that's delivering progress for this country by being a part of a government that can make decisions, to make a difference," he said. "Dorinda Cox is someone who's a former police officer. She's someone who has a lot to offer in terms of policy development." The senator said improvements for Indigenous people would be more achievable within the government than from the crossbench. "It was a decision that I made, and I made that based on some deep reflection," she said. "It was one that I considered both at a professional level, but also at a personal level. So this wasn't a decision that I did on the hop or based on emotion." Senator Cox was accused of bullying staffers in 2024, with as many as 20 employees leaving in three years and complaints made to parliament's workplace support service. Mr Albanese said the allegations had been examined. "They were all dealt with in Senator Cox's case and dealt with appropriately," he said. Senator Cox only informed Greens leader Larissa Waters of her decision to leave the party 90 minutes before her defection was announced. She will join the government ranks despite having made previous comments critical of Labor policy. Senator Cox had previously spoken out against Woodside's North-West Shelf gas project, which Labor on Wednesday granted an extension until 2070. Pressed on her previous opposition to the project, Senator Cox said she did not want to comment on the issue as the extension was still being provisionally approved. "Obviously, I will be working with the Labor government now to ensure that we tread a pathway forward in ensuring that there's a delivery of what's required for the Australian public, particularly for the West Australian public," she said. "I would need to look at the provisional approval that's been made by (Environment Minister Murray Watt)." Senator Cox also criticised the Albanese government in August, saying it was not interested in closing the gap between Indigenous and non-Indigenous Australians. She had also said Australia was complicit in "making Israel's war crimes possible" in reference to the conflict in the Middle East.
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