Albanese Government declares investment in gas still needed, with fuel to be used beyond 2050

The Federal Government is showing signs it will change course on oil and gas policy but the multibillion-dollar industry wants a newly released strategy followed with action.

The Future Gas Strategy released on Wednesday said natural gas would be needed beyond 2050 in “all credible net zero scenarios”.

There’s been debate about the need for investment into new gas fields but the Government was clear that more capital would be needed in the decades ahead.

That sets the scene for a change in the Government’s approach, after shaking investor confidence through a series of interventions in the sector, including a price cap.

Woodside chief executive Meg O’Neill said the company welcomed the strategy’s clarity on the ongoing role of gas to keep the lights on and support manufacturing.

She said the company would work with the Government on the “next level of detail”.

“In order to protect Australian jobs, investment and energy security, we need a consistent and coherent policy framework for gas that provides timely consideration of proposals, stable tax and fiscal settings and is not vulnerable to manipulation by activist groups whose only goal is to prevent projects from proceeding,” Ms O’Neill said.

Two major projects were held up by court challenges in the past 12 months — Woodside’s Scarborough and Santos’ Barossa.

The Federal Court found claims in the Barossa case were based on contradictory and made-up evidence.

But Woodside’s approval for seismic work was junked in September. The West Australian previously revealed the company’s 1196-page environmental document showed 32 meeting with Traditional Custodians during the approval process.

The gas strategy says the Government should act immediately to clear up consultation requirements.

Industry lobby group Australian Energy Producers also endorsed the strategy but said it would need to be backed by clear and tangible action to unlock supply.

Chief executive Samantha McCulloch said new gas would be needed to address looming shortfalls.

“A Future Made in Australia (policy) is not possible without natural gas,” she said.

“Delivering on the strategy’s objectives will require a whole-of-government response and national leadership to bring State governments on board.”

The strategy projects gas-fired power will be needed for decades, with demand for the fuel’s use in electricity to potentially double by 2025 in a high case. That’s driven by the use of gas power to firm up renewables as coal plants are switched off.

Federal Resources Minister Madeleine King said continued investment into gas would be needed to achieve a transition to green energy.

“Our trade partners have made large investments over decades in Australia’s resources industry,” Ms King said.

“They are relying on Australian gas to transition their economies to net zero.”

Greenpeace Australia chief executive David Ritter said the plan was a “betrayal” of the Government’s commitment on climate action.

“Minister King’s so-called strategy might as well have been written by the fossil fuel lobby; it is full of measures to ease the way for new gas, and conveniently light on measures to protect the threatened species that will be harmed in the process,” he said.

“It reads like a blank cheque for the industry to drill as they please, no matter the cost to our communities, and our climate.”