‘Gas bin fire’: Labor blames Libs for Aussie gas crisis
Aussie’s critical gas shortage has Labor scrambling to convene an emergency meeting among states, and a grim warning to heavy energy users to cutback if the “gas bin fire” eventuates.
NSW
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Increasing Australia’s coal fired power output to cover a critical gas shortfall driving up power prices on the east coast has not been ruled out by the Albanese Government.
An escalating energy crisis is gripping the nation, with Australia Industry Group estimating it would cost $5 billion just to financially support the 10 per cent most vulnerable businesses and households to get through this winter.
New Energy Minister Chris Bowen on Thursday declared no solution had been ruled “in or out,” including working with industry to up coal power production.
“If there is advice to me about sensible and measure actions that can be taken, I will take them,” he said.
An estimated 30 per cent of coal fired power connected the National Energy Market was offline last month, with significant work required to re-establish output.
During the election Labor ruled out building new coal-fired power stations and being committed to a 43 per cent 2030 emissions reduction target.
Origin Energy chief executive Frank Calabria has called for government and industry to work together to increase coal power to cover the gas shortfall impacting east coast states.
A “perfect storm” of coal-fired power outages, flooded coal mines and the war in Ukraine has caused wholesale prices to soar.
Mr Bowen will convene an emergency meeting with his state counterparts early next week to discuss solutions, while heavy energy users have been warned they may have to cut back if a shortfall eventuates.
But Mr Bowen said a gas trigger established in 2017 that would force producers to sell to the domestic market instead of exporting was not “easy” to pull.
“If it was pulled today it would have absolutely no impact until the first of January anyway,” he said.
He accused the previous government of leaving Labor with a “gas bin fire”.
AI Group chief executive Innes Willox said big gas users like food processing, brick works, paper, chemical and fertiliser manufacturers would all be impacted if “rationing” was implemented as a temporary solution.
“Short term is either get more gas into the market and get more coal power, but neither are easy or simple,” he said.
Mr Willox said it would cost $5bn for the government to financially support those most vulnerable to huge wholesale power price hikes.
Queensland Senator Matt Canavan said increasing dependence on renewables would only make the problem worse.
“Because of a lack of investment, our coal stations are ageing,” he said.
“Coal stations are also being asked to back up renewables in ways they were not designed to do.
“That is leading to more frequent outages and hence and over-reliance on gas pushing the price of that up too.”
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