Coalition says it will allow gas producers to access $4bn net zero fund for critical minerals

The Guardian

02-04-2025

The Coalition has told a gas industry conference in Sydney it would give gas the same status as a critical mineral, to allow the industry to access a $4bn export finance fund set up to support the transition to net zero.
Queensland senator Susan McDonald told the conference on Wednesday morning the policy would ensure that gas – which is methane, a fossil fuel – 'remains a critical part of the Australian economy for decades'.
'I can announce today that to boost investment, a Coalition government will elevate gas to the same status as a critical mineral,' she said.
'This will ensure gas projects are able to apply for funding from the $4bn critical minerals facility.
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'This will ensure gas projects, so critical to our national and international security, are able to access specialised teams within the department of resources to support their projects.'
The facility is a fund managed by Export Finance Australia. It was established to support projects that are in line with the goals of the federal government's critical minerals strategy, which aims to boost the critical minerals sector as energy markets transition to clean energy.
The announcement follows Peter Dutton's budget reply last week, where the opposition leader vowed to establish an east coast gas reservation scheme to reduce domestic prices.
Dutton said he would require east coast gas exporters to add 10% to 20% to available gas supply for Australian homes and businesses, and that it could lead to wholesale gas prices falling from $14 to $10 a gigajoule before the end of the year. The Coalition had not yet explained how the policy would work, but promised to release modelling to back up the claims.
Samantha McCulloch, the chief executive of the peak industry body Australian Energy Producers, told the conference the announcement was 'further welcome news and further welcome recognition of the critical role of gas in our economy'.
Anti-gas group the Lock the Gate Alliance expressed alarm about 'the very large amounts of taxpayers' money being offered to the gas industry by the Coalition', noting Wednesday's announcement came on top of another promise in Dutton's budget reply, of $1bn for gas pipelines and storage facilities.
'This is a huge pot of public money being opened up during a cost of living crisis to big gas companies that are already making large profits, pay little to no royalties to the federal government, and absolutely don't need a taxpayers' leg up,' national coordinator Carmel Flint said.
Josh Runciman, from the Institute for Energy Economics and Financial Analysis, said because the vast majority of Australia's gas was exported, any benefits from the additional financial support could flow overseas.
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'Government financial support often plays a key role in supporting emerging Australian industries. Australia's critical minerals industry, still in its infancy, is one such industry likely to require government support,' he said.
'Conversely, Australia's gas industry is well established, rather than emerging, with hundreds of billions invested in recent decades without government support.'
In a pre-recorded speech to the conference, the resources minister, Madeleine King, said the opposition leader's overall gas plan was 'not much of a plan' and 'reckless' in its lack of detail.
She noted that in the recent parliament, the opposition had voted against government legislation designed to bring gas prices down for Australian consumers, such as a temporary $12 a gigajoule price cap.
'There is a distinct lack of detail [in the Coalition's policy], and there is certainly nothing new in it, and nothing the government hasn't already done,' King said.
'All Peter Dutton's gas reservation scheme has to offer is a slogan.'
McCulloch was also critical of the gas reservation plan, telling the conference it 'risks undermining the case for investment in the long term secure gas supply that we need'.