Submission to the Australian Government's Future Gas Strategy Consultation

November 17, 2023

Amandine Denis-Ryan

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Key Findings

There is a growing body of evidence to show gas will have a very limited role in the energy transition, with electrification representing the most economical decarbonisation options.

Focusing on opportunities to reduce gas demand, rather than investing in new supply, has enormous potential to eradicate the anticipated gas supply gap, while also bringing energy bills down.

17 November 2023

To: Department of Industry, Science and Resources
RE: Future gas strategy consultation

Thank you for the opportunity for the Institute for Energy Economics and Financial Analysis (IEEFA) to present its submission to this consultation.

The key points addressed in our submission are:

Gas use in Australia
- A compelling business case to accelerate cost-effective residential electrification
- Enormous untapped, cost-effective potential to reduce gas demand in Australia
- Gas generation unlikely to be a large demand source in the future
- Domestic ammonia production an ideal early mover to hydrogen
Australian LNG in the world’s transition to net zero emissions
- Growing evidence gas has a very limited role in a decarbonising world
- Looming LNG supply glut could make projects already under construction unnecessary
- Australia unlikely to be a competitive supplier of LNG in the future market
Oil and gas regulation
- Need for stronger regulation on decommissioning oil and gas production sites
- Stronger action needed to reduce oil and gas methane emissions
Reducing emissions from Australian gas production
- CCS should not be relied on to deliver emissions reductions
- Any use of CCS needs to be backed by strong regulatory protection
Gas transportation and infrastructure
- Adapting gas networks for hydrogen or biomethane does not make financial sense
- Plan needed to wind down gas distribution networks
- Demand reduction should be optimised before investing in new infrastructure
Royalties and revenues
- Opportunity for more reform of oil and gas sector’s tax and royalties regime
Domestic gas supply
- More focus needed on reducing demand before increasing supply
- Domestic demand should be prioritised over exports

Regards,

Amandine Denis-Ryan – Chief Executive, IEEFA Australia
Kevin Morrison – Energy Finance Analyst, Australian Gas
Joshua Runciman – Lead Analyst, Australian Gas
Jay Gordon – Energy Finance Analyst, Australian Electricity

Submitted via email.

Amandine Denis-Ryan

Amandine Denis-Ryan is CEO of IEEFA's Australia team. Amandine is a recognized expert in net-zero emissions transitions across the economy and led the development of the first domestic net-zero emissions pathway for Australia and subsequent updates.

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