Greens gas policy would mean ‘lights out’: industry

Gas-fired power generation would end in five years under a push by the Greens, undermining Labor’s plan to accelerate the rollout of renewables without blackouts.

Australian Energy Producers chief executive Samantha McCulloch says the Greens’ gas policy would “mean lights out for Australia”. Picture: Lyndon Mechielsen/Courier Mail

Gas-fired power generation would end in five years in NSW, Victoria and South Australia under a push by the Greens and most teal MPs to end investment in the energy source, undermining Anthony Albanese’s plan to accelerate the rollout of renewables without blackouts.

With Environment Minister Tanya Plibersek accused by some of trying to stop development of the Beetaloo Basin, a report commissioned by Australian Energy Producers says an end to gas investment would hit electricity supply in eastern states within two years.

With the Prime Minister set to face pressure from the Greens and teals to ban gas development if Labor falls into a minority government, the EnergyQuest report said this would cause a “major economic disruption”.

The report forecast the policy would interrupt supply to gas power generators in NSW, Victoria and SA within two years and stop electricity generation from the fuel source in those states by 2029.

Gas electricity generation would cease in Western Australia by 2032 and Queensland by 2036, despite the Australian Electricity Market Operator forecasting demand for the fuel would grow over the coming decades as coal-fired power generators exit the market.

Gas peaking plants are able to be turned on quickly and provide backup power when conditions do not bode well for producing ­electricity from wind and solar generators.

The report also says the policy would see Australia fail to fulfil its international LNG contracts, with industrial users to be short of gas by the end of the decade leading to manufacturing job losses.

“Residential and commercial gas supply would be impacted last, with shortfalls in the east coast market from 2040 under the investment ban scenario – after all gas supply to power generation and industrial customers has ceased,” the report says.

Australian Energy Producers chief executive Samantha McCul­loch said the Greens’ gas policy would “mean lights out for Australia” and undermine the shift towards net-zero.

“The Future Gas Strategy is clear that the Australian economy will need gas to 2050 and beyond, and investment in new gas supply is urgently needed to meet demand,” she said. “AEMO has warned the east coast will need more gas for electricity while the ACCC called for the lifting of exploration bans and fast-tracking of approvals.

“Instead, the Greens policy would undermine energy security, drive up energy prices and extend the reliance on coal – both in Australia and for our key trading partners – ultimately increasing emissions and slowing the energy trans­formation.”

Energy company Tamboran Resources’ gas facility in the Beetaloo Basin. Picture: Pema Tamang Pakhrin

Greens leader Adam Bandt said Australians were “getting ripped off by big gas corporations who pay next to no tax while sending gas – and profits – overseas”.

“Gas is as dirty as coal, and the gas corporations are peddling misinformation because they know the Greens will force them to pay their fair share of tax to the Australian people in a power-sharing parliament,” he said.

With the Beetaloo Basin regarded as a key source of future gas, Ms Plibersek has written to the Independent Expert Scientific Committee asking for advice on how the project would impact water supply in the Northern Territory. Seeking the advice from the government’s scientific panel could potentially pave the way to Ms Plibersek using “water trigger” powers to reject the project, although development will continue while it is being assessed.

Opposition resources spokeswoman Susan McDonald said Ms Plibersek was motivated by “Greens’ preferences in Sydney for the next election”.

“In the middle of an energy price crisis, which is driving up power bills and the cost of goods, Labor has started down a pathway to cripple even more projects that can bring affordable and reliable energy to Australian households and businesses,” she said.