Passing of Conventional Onshore Gas Legislation A Positive Boost for Gas Reliant Manufacturers
Emily Wood | June 17, 2020
The opening up of conventional onshore gas fields in Victoria from 1 July 2021 is a welcomed step towards ensuring sufficient gas for vital manufacturing in the state, said the leading advocate for large energy users, Energy Users’ Association of Australia (EUAA).
“We congratulate the Victorian government and welcome this sensible outcome which we expect will deliver new gas into the domestic market in the coming years,” said EUAA Chief Executive Officer, Mr Andrew Richards.
“The EUAA hopes this will help us avoid forecast gas shortfalls, support jobs in key manufacturing sectors and encourage fast start gas generation to support the transition to a cleaner energy sector.”
Gas is a vital input into many essential manufacturing processes such as making packaging, bricks, steel, and food processing. In many cases, there is no commercially available or affordable alternative to this fuel so without it we would stop making these products.
Current gas forecasts predict that Australia could run short of gas as soon as 2024. With Victoria the largest user of gas in the country, a shortage of gas would have detrimental impacts, so opening up gas exploration in the state is particularly important.
“Gas has also become an increasingly important element in our electricity system in recent years as larger volumes of variable renewable energy enters the market,” added Mr Richards. “While batteries will play a growing role, quick response gas fired power plant will still be required as the pace of the energy transition increases.”
EUAA members represent companies that produce countless essential items that Australians use every day. They have long been calling for bipartisan energy policy to create a framework for a more sustainable, affordable and reliable market.
EUAA members include Incitec Pivot; Nyrstar; Orora Limited; Visy; Qenos; Simplot Australia; Bluescope Steel; Shell; Wesfarmers; Woolworths; Flow Power; CQMS Razer; SA Water; Gold Coast Airport; Sun Water; Harvey Norman; Sydney Water; Air Liquide and BOC Limited to name just a few.
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Media Contact: Emily Wood 0421 042 121