The Australian Government is delivering a new energy system, with the Gas Market Code supporting the domestic supply of gas.
This is critical for Australian manufacturing, and supporting reliability as households and businesses ramp up low-cost renewables.
Over 260 PJ of gas will be made available between now and 2033 through two new enforceable supply commitments with Esso and Woodside under the Gas Code of Conduct exemptions framework. This would be sufficient to power east-coast gas-fired power stations for around two and a half years.
The announcement is in addition to the commitments made by Senex and APLNG announced in November 2023 and brings the total volume of gas secured through the Gas Market Code commitments to 564 PJs.
Gas is critical in supporting reliability and affordability of the increasingly renewable grid, by providing peaking and firming. This ensures households and industry can increasingly benefit from downward pressure on wholesale electricity prices that solar is already bringing.
Minister Chris Bowen stated, “We know that gas is critical to supporting a lower-cost, more renewable grid as aging coal exits, and to support Australian manufacturing – which is why we’ve delivered this code to shore up energy reliability and affordability after a decade of chaos.”
The supply commitments announced on the 22 January will directly feed into southern demand centres previously identified as being at particular risk of seasonal shortfalls and ensure there is sufficient domestic supply to keep the downward pressure on gas prices.
Minister Madeleine King said, “Gas is essential to supporting the nation’s energy grid and the reliable supply of gas is crucial to keeping energy prices down for households and businesses.”
“Importantly, this agreement underlines the continued importance of the Bass Strait in supplying and supporting the east coast energy network.”
Other exemption applications under the Gas Market Code are also being assessed – the mandatory Gas Market Code of Conduct came into force in July 2023 and will be reviewed in 2025.