Blackouts within two years under Greens’ ‘reckless’ gas ban

A Greens push to ban new gas would result in blackouts across southeast Australia in as little as two years, leading to manufacturing closures and the loss of long-term export contracts.

A “reckless” Greens push to ban new gas would result in blackouts across southeast Australia in as little as two years, leading to manufacturing closures and the loss of long term export contracts.

Halting investment in gas supply would “devastate the economy” leading to southern states running out by 2029, industrial manufactures closing within a decade and Queensland’s long term liquid natural gas (LNG) export contracts being broken, according to a new Energy Quest report commissioned by Australian Energy Producers.

The Greens’ policy to end all investment in new oil and gas projects would exacerbate forecast shortfalls in the “southern region” of Australia, including NSW, Victoria and South Australia, resulting in “major economic disruption” for households and businesses.

The analysis showed Australia’s domestic gas supply would be interrupted “within two years” with no supply available in five years.

The Greens’ policy to end all investment in new oil and gas projects would exacerbate forecast shortfalls in the “southern region” of Australia. Picture: NewsWire / Monique Harmer

“Within a decade most industrial demand would go unmet and most industrial gas users would likely cease operations due to a lack of alternative energy sources, and in the longer term there would be significant disruption and potentially shortfalls for residential and commercial gas users,” the report said.

An investment ban would also result in the “rapid decline” of Queensland LNG exports, which would be forced to cease entirely within 12 years.

Australian Energy Producers chief executive Samantha McCulloch said the Greens’ “no new gas” policy would mean “lights out for Australia” and be “a handbrake on the transition to net zero.

“The Greens don’t have a credible plan for Australia’s future,” she said.

“Their three-word slogan is not an energy policy, but a recipe for destroying Australia’s economy and energy security. Australians deserve to know what a vote for the Greens really means for jobs and their energy bills.”

Industry leaders say substantial economic benefits from new gas projects would also be lost if new investment stopped. Picture: NewsWire

Earlier this year the federal government released its Future Gas Strategy, which said the Australian economy would need gas to 2050 and beyond, with investment in new supply required to meet the demand.

Ms McCulloch said the substantial economic benefits from new gas projects would also be lost if new investment stopped.

“Australia’s gas industry is a major economic driver – investing hundreds of billions of dollars in recent decades, creating thousands of jobs, delivering up to $17 billion annually to governments and spending $40 billion with businesses in Australia each year,” she said.

Greens leader Adam Bandt has already signalled the gas would be focus of the party’s climate attack against Labor at the next election, which would include a push to restrict gas export contracts and force major companies to divert supply to the domestic market.

Mr Bandt has also called for government to help businesses and households electrify.

“A lot of gas is used for heating in industrial processes,” he said.

“Now that could be substituted for electricity, but industry is going to need some help to make that substitution.”