Latest news with #GasInquiry
Sky News AU
18 hours ago
- Business
- Sky News AU
Energy Minister Chris Bowen launches major review of gas market rules amid energy grid concerns
Energy Minister Chris Bowen has launched a comprehensive review of gas market regulations in a bid to shore up long-term energy security and affordability. The review comes after Mr Bowen's repeated claims that 'renewable energy is the cheapest form of energy'. As part of the review, the government will consult with industry, stakeholders and the public on how to regulate the gas market. There have been sweeping efforts across all levels of government in recent months to review the role of gas in the power grid amid concerns about reliability and cost. The Victorian government recently backed down on its contentious gas bans following alarm from consumers and industry stakeholders. The NSW government also faced calls to intervene in Sydney Mayor Clover Moore's ban on gas appliances in new buildings. Mr Bowen said his review will ensure the gas market will be "fit for purpose" as the country accelerates toward an 82 per cent renewable energy grid. 'Gas has an important role to play in our energy system as we transition towards 82 per cent renewables,' Mr Bowen said in a statement on Monday. 'Unlike coal, gas power generators can be turned on and off in a couple of minutes – providing the ultimate backstop in our energy grid.' 'It's critical that we use this review get the settings right in our gas market, ensuring we are securing affordable Australian gas for Australian use.' The goal will be to streamline regulatory mechanisms to support long-term investment, affordability, and domestic supply of gas. The Australian Competition and Consumer Commission (ACCC) released its latest Gas Inquiry report on Monday, raising concerns about the future of gas. The ACCC confirmed that while short-term supply was sufficient, the long-term outlook remains precarious without further investment. The report echoes years of warnings from the ACCC and the Australian Energy Market Operator about looming supply shortfalls. In response to those warnings, the Albanese government said it has secured 644 petajoules of enforceable domestic gas supply since 2023. Environment Minister Murray Watt recently gave the green light to Woodside's North West Shelf gas project extension until 2070 in order to firm up gas supply. The approval was made under the Environment Protection and Biodiversity Conservation (EPBC) Act, which doesn't require consideration of climate impact. The decision sparked backlash from environmental groups and the Australians Greens, who accused Labor of failing a major climate test. Greens leader Larissa Waters labelled the approval 'a betrayal' of the government's commitment to net zero by 2050 and vowed to encourage legal action. 'Approving fossil fuels out to 2070 totally undermines the government's commitment to net zero by 2050, which is already too late for a safe climate future,' Ms Waters said. Despite the criticism, Prime Minister Anthony Albanese defended the continued role of gas during the transition. 'You can't have renewables unless you have firming capacity. You don't change a transition through warm thoughts. You do it through a concrete proposal,' he said recently.
Perth Now
19 hours ago
- Business
- Perth Now
Chris Bowen flags greater government intervention in energy markets with Gas Market Review
Labor will consider forcing gas companies to redirect future supplies into the domestic market instead of selling to international markets, with Energy Minister Chris Bowen launching a review into Australia's gas market. The Australian Competition and Consumer Commission warned on Monday Australia's east coast gas supply outlook has further deteriorated, with risks of a shortfall beginning from the fourth quarter of 2025 and into 2026 set to increase if 'Queensland LNG producers export all uncontracted gas'. This is because southern states like NSW, Victoria, South Australia and Tasmania will need to 'continually rely on gas from Queensland as their local reserves deplete,' the ACCC's interim Gas Inquiry report, published on Monday, warned. The ACCC says tipped 'structural shortfalls' on the east coast will continue from 2028 unless new gas supplies are brought online. The government's Gas Market Review will look at how regulations can be improved to ensure affordable and adequate domestic gas supply, with Mr Bowen flagging the importance of gas as a firming power, alongside renewable energy, which will make up 82 per cent of Australia's grid. Camera Icon Energy Minister Chris Bowen wants to fortify domestic gas supply for residential and industrial cusomters as the ACCC warns of a looming shortfall in the critical power source. NewsWire / Martin Ollman Credit: News Corp Australia However, he said existing commercial contracts with international partners will be protected. Australia is one of the world's largest liquid natural gas exporters with export earnings reaching a record $92.8bn in 2023. 'One thing we won't contemplate is ripping up existing contracts, creating sovereign risk, engaging in behaviours which will see Australia (considered) as an unreliable supply. 'We won't be doing that, but what we will be looking at is sensible, forward looking, prospective means to ensure that Australians get access to their gas.' While Mr Bowen wouldn't be drawn on whether this would mean ramping up gas supplies, or creating an East Coast Gas Reserve, he said it was a 'reasonable request' to ensure 'Australian users get access to Australian gas'. The review will also look at consolidating the Australian Domestic Gas Security Mechanism, Gas Market Code and Heads of Agreement with major east coast gas exporters to 'holistically' ensure policy can support the 'efficient supply of gas to industrial users, domestic users, and to the energy system'. Separately, Mr Bowen also commented on Adelaide's bid to host climate conference Cop31 in 2026, with negotiations at a standstill due as Turkey also pitches for the rights. The McMahon MP said while the bidding issue 'has not yet been resolved,' Australia had the support of the Western Europe Group. He also declined to give an estimated cost for the event, but said there would be 'revenue opportunities' through sponsorship and attendance fees. 'This is a remarkable opportunity for Australia. It's the world's largest trades fair,' he said. 'It gives us an opportunity to talk to the world about Australia's capacity to help them decarbonise. 'It's a remarkable opportunity for the Pacific (to) put their issues on the table. If and when we're successful, of course, we'll have more to say about costs.'
