The Coalition’s National Gas Plan that we release today will secure supply and drive down prices to make sure Australian gas is available for Australian homes and businesses first.
Australians have some of the most abundant gas reserves in the world right beneath our feet – we should be unlocking these resources to deliver lower energy prices and prosperity for Australians.
Under Labor, Australians are facing the worst cost-of-living crisis in a generation, and energy prices remain at unsustainable levels. Household gas bills have surged by 34%, and electricity by 32%, costing households up to $1,300 more than Labor promised before the last election.
Looming gas shortages and soaring gas prices are also threatening jobs, manufacturing, and Australian industry. With business input costs flowing directly to consumers, high energy prices mean Australians are paying more at the checkout because Labor has failed to secure reliable and affordable gas supply.
The Coalition’s National Gas Plan will fix Labor’s national energy emergency. As a key pillar of this plan, a Dutton Coalition Government will immediately introduce an East Coast Gas Reservation scheme to ensure reliable and affordable energy for households and businesses.
The Coalition’s East Coast Gas Reservation scheme will deliver between 50 to 100 petajoules of additional gas to the domestic market in the first full year of operation – equivalent to a further 10 to 20 per cent of current domestic demand.
We will work with these exporters to ensure ‘foundation’ contract volumes with our trading partners are honoured, at all times. And we will work to ensure the mechanism design delivers this additional gas while recognising the important contributions already made to the domestic gas market.
By ensuring this additional gas remains in Australia, our plan will ensure domestic gas prices will be decoupled from volatile, expensive international markets – by ensuring there is a financial incentive to deliver this gas to Australians as a priority.
Big energy users also have an important role to play by stepping up to contract for gas in the longer term.
Independent advice is that these measures, complemented by the rest of the National Gas Plan, will work quickly to push wholesale prices down to below $10 per gigajoule, which is above the long run marginal cost of new gas production and well below current prices of around $14 per gigajoule.
Modelling conducted by Frontier Economics has concluded that the Coalition's National Gas Plan will see a 23% reduction in wholesale gas prices, which will progressively mean:
- 15% reduction in retail gas bills for industrial customers.
- 7% reduction in retail gas bills for residential customers.
- 8% reduction in wholesale electricity prices.
- 3% reduction in residential electricity prices.
Our East Coast Gas Reservation scheme will work as part of a suite of measures in our National Gas Plan to unlock new projects – like the Beetaloo and Narrabri – and keep prices low.
To encourage new supply, we will:
- Introduce a new $300 million Strategic Basin Plan to accelerate investment in new supply, both near-term projects and new opportunities;
- Audit development-ready gas projects, with a focus on delivering to the southern states;
- Fast track a decision on WA’s North West Shelf project within 30 days;
- ‘Use it or lose it’ stipulations so offshore gas fields are not locked up for years;
- Cut red and green tape, including halving approval timeframes, streamlining consultation requirements and gas title transfers; and
- Defund the discredited Environmental Defender’s Office.
To drive energy prices down, we will:
- Introduce of an East Coast Gas Reservation scheme;
- Ensure a fit-for-purpose ‘gas trigger’ or Australian Domestic Gas Security Mechanism as a last resort measure; and
- Add gas to the Capacity Investment Scheme to ensure new reliable gas-fired electricity generation is built.
To deliver gas to where it is needed, we will:
- Establish a new massive $1 billion fund for critical gas infrastructure to get gas to where it is needed; and
- Reinstate the National Gas Infrastructure Plan.
Together these measures will safeguard energy security for Australians, unlock new supply, and create opportunities for smaller players to grow and access international markets while putting downward pressure on prices.
Only a Dutton Coalition Government will deliver cheaper energy for Australian households and businesses.