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Anthony Albanese at odds with Fitzgibbon in dismissal of gas in energy market

The energy divide in the ALP’s ranks has been exposed with the Opposition Leader at odds with his resources spokesman on the critical role of new gas projects to shore up Australia’s electricity market.

Highlights of the Daily Telegraph's Bush Summit

The critical role of new gas projects to shore up Australia’s electricity market has been dismissed by Opposition Leader Anthony Albanese — fuelling an energy divide within Labor’s senior ranks.

Mr Albanese downplayed the role of gas in Australia’s future energy mix, saying it was a “matter of where growth will be” which was “primarily” renewable technology.

He used a recent report by the Australian Energy Market Operator (AEMO) to support his claims.

Opposition leader Anthony Albanese at The Daily Telegraph Bush Summit. Picture Rohan Kelly
Opposition leader Anthony Albanese at The Daily Telegraph Bush Summit. Picture Rohan Kelly

“If you look at (AEMO), the predictions going forward and all of the scenarios don’t see a significant increase in gas as a proportion of the electricity market,” he told the ABC yesterday.

But the same document also said ­renewables would have to be supported by “gas-powered generation,” which would “continue” to play a “critically important” role in the national energy market.

“Six to 19 gigawatts of new dispatchable resources will be needed in support to firm up the inherently variable renewables,” the AEMO report said.

Mr Albanese’s stance was also at odds with members of his own front bench.

Joel Fitzgibbon and Labor Senator Deborah O’Neill discuss Orica’s Kooragang Island facility in Newcastle where ammonium nitrate is store. Picture: Milan Scepanovic
Joel Fitzgibbon and Labor Senator Deborah O’Neill discuss Orica’s Kooragang Island facility in Newcastle where ammonium nitrate is store. Picture: Milan Scepanovic

Labor’s resources spokesman Joel Fitzgibbon said those who disregarded the importance of gas as a transition energy source were “cherry picking” reports.

Mr Fitzgibbon told a panel at The Daily Telegraph Bush Summit last week that an ACCC report this month also very clearly made the point there was a need for further gas generation to cover a “shortfall” in NSW and Victoria.

“Not having enough gas means higher prices for everyone, both households and manufacturers,” he said.

“So we need to get more gas out of the ground, we need the interconnector between Queensland and NSW for the southern states.”

Santos’s long-awaited Narrabri Gas project is among the new gas-powered energy options on the table. Picture: Nathan Edwards.
Santos’s long-awaited Narrabri Gas project is among the new gas-powered energy options on the table. Picture: Nathan Edwards.

Energy Minister Angus Taylor told The Daily Telegraph it was clear Mr Albanese “did not understand gas”.

“He’s cherry picked from one scenario with one report with unrealistically high gas prices,’’ Mr Taylor said.

Mr Taylor said it was clear Mr Albanese wanted to see “the end” of gas ­development in Australia despite the economic consequences.

Original URL: https://www.dailytelegraph.com.au/news/nsw/anthony-albanese-at-odds-with-fitzgibbon-in-dismissal-of-gas-in-energy-market/news-story/051b2749b9f0f335ce7dff1656f4143f