Queensland Energy Minister David Janetzki vows to block plan forcing state to share its gas

Queensland has fired a warning shot at states seeking to force it to share gas reserves, with the Energy Minister declaring he won’t accept ‘heavy-handed interventions’ that could cost billions.

Queensland Energy Minister David Janetzki. Picture: Liam Kidston

Queensland Energy Minister David Janetzki has warned he will not support moves to give Australia’s power regulator the authority to force the state to reserve gas for other states facing shortages.

Speaking in parliament on Wednesday, Mr Janetzki said NSW and Victoria’s opposition to gas and poor planning should not penalise Queensland’s lucrative export market over the east coast gas shortage.

The nation’s energy ministers plan to meet in Canberra next Tuesday for the Energy and Climate Change Ministerial Council, where they will discuss giving the Australian Energy Market Operator the regulatory powers to direct a state reserve gas to be moved interstate to cover shortfalls at the direction of energy ministers in affected jurisdictions.

Mr Janetzki said the changes would deter private investment and rob the state of revenue.

“While Queensland has continuously supported gas development, southern states have not,” Mr Janetzki said. “That is in stark contrast to NSW, which produces no national gas, and where we’ve seen efforts to develop the Narrabri gas field appear to stall.

“Meanwhile, Victoria’s many years of ideological warfare on gas, whether it be household use or commercial production, has come to a head as the sheer weight of reality has forced them into reconsidering damaging rhetoric that demonised the industry.

“Any reforms to Australia’s gas market settings must acknowledge Queensland’s substantial and ongoing contribution to domestic demand, regional trade and the national economy.”

Mr Janetzki’s statement coincided with the expected passing on Wednesday evening of the state’s Energy Roadmap, which will keep the state’s young fleet of coal-fired power stations operating into at least the 2040s and repeal Labor’s renewables targets. The emissions target to reach net zero by 2050 will remain.

One of the first moves on energy by the first-term Crisafulli Liberal National Party government was to open nine new tenements in central and western Queensland. It is part of the government’s commitment to expand gas production in the state by partnering with the private sector to deliver an extra 400 megawatts of gas-fired electricity in central Queensland.

Last year, Queensland’s gas production reached almost $27bn and generated about $1.7bn in royalties for the state's coffers. By 2027, about 90 per cent of all gas along the east coast will come from Queensland.

Strong revenues from gas and coal royalties were among the factors that slashed Queensland’s share of GST by more than $2bn in March to allow more funds to be distributed to states with a poorer budget position, such as Victoria.

“Southern states want to force Queensland to fix their self-made problem, to the detriment of Queensland taxpayers,” Mr Janetzki said. “I will not accept other jurisdictions trying to push through heavy-handed market interventions.”