Australia’s future gas strategy paves the way for net zero by 2050

The Australian Government, under the guidance of Minister for Resources and Northern Australia Madeleine King, has unveiled the Future Gas Strategy, a comprehensive plan outlining the crucial role of gas in Australia’s transition to a net zero emission economy by 2050. This strategic framework is aimed at securing affordable gas supplies while advancing towards a renewable energy grid, reinforcing Australia’s position as a dependable energy trading partner on the global stage.

Strategic Principles and Objectives

The Future Gas Strategy is built on six foundational principles intended to guide government policy concerning gas. These include ensuring gas affordability for Australians during the transition, identifying new gas supply sources to meet demand, and supporting the gradual shift to high-value and non-substitutable gas uses. The strategy also emphasizes the need for adaptability in gas and electricity markets to meet future energy requirements, and underscores Australia’s ongoing commitment to global emissions reduction and reliability as an energy exporter.

Actions and Measures

Outlined in the strategy are several key actions:

1. Preventing Gas Shortfalls: Collaborating with industry and state governments to accelerate the development of known gas reserves.

2. Reducing Gas-Related Emissions: Implementing measures to minimize methane emissions from gas operations and exploring further emission reduction strategies across six decarbonization pathways.

3. Supporting the Transition for Households and Businesses: Working with states and territories to manage energy pricing impacts and modifying the Gas Market Code.

4. Empowering First Nations: Enhancing consultation processes and pursuing benefit-sharing in offshore resource activities to involve First Nations communities as partners in the transition.

Furthermore, the strategy includes initiating projects for geological CO2 storage and fostering regional cooperation on transboundary carbon capture and storage (CCS) solutions.

Ministerial Insights

Minister King highlighted the strategic significance of gas: “Gas plays a crucial role in supporting our economy, with the sector employing 20,000 people across the country, including in remote and regional communities,” she said. “Ensuring Australia continues to have adequate access to reasonably priced gas will be key to delivering an 82 per cent renewable energy grid by 2030, and to achieve our commitment to net zero emissions by 2050.”

Impact and Future Directions

Gas is a linchpin in supporting industries such as manufacturing, food processing, and the refining of critical minerals, which are essential for reducing global emissions. It currently meets 27% of Australia’s energy needs and accounts for 14% of the nation’s export income. The strategy confirms that gas will remain an integral part of Australia’s energy landscape through 2050, facilitating renewable power generation and serving sectors where alternatives are not yet viable.

The Future Gas Strategy represents a balanced approach to navigating the complexities of energy transition. It is a pragmatic blueprint that not only addresses immediate energy needs but also sets a clear path towards sustainable development and emission reduction.