Chris Bowen flags greater government intervention in energy markets with Gas Market Review

News.com.au

15 hours ago

Labor will consider forcing gas companies to redirect future supplies into the domestic market instead of selling to international markets, with Energy Minister Chris Bowen launching a review into Australia's gas market.
The Australian Competition and Consumer Commission warned on Monday Australia's east coast gas supply outlook has further deteriorated, with risks of a shortfall beginning from the fourth quarter of 2025 and into 2026 set to increase if 'Queensland LNG producers export all uncontracted gas'.
This is because southern states like NSW, Victoria, South Australia and Tasmania will need to 'continually rely on gas from Queensland as their local reserves deplete,' the ACCC's interim Gas Inquiry report, published on Monday, warned.
The ACCC says tipped 'structural shortfalls' on the east coast will continue from 2028 unless new gas supplies are brought online.
The government's Gas Market Review will look at how regulations can be improved to ensure affordable and adequate domestic gas supply, with Mr Bowen flagging the importance of gas as a firming power, alongside renewable energy, which will make up 82 per cent of Australia's grid.
However, he said existing commercial contracts with international partners will be protected. Australia is one of the world's largest liquid natural gas exporters with export earnings reaching a record $92.8bn in 2023.
'One thing we won't contemplate is ripping up existing contracts, creating sovereign risk, engaging in behaviours which will see Australia (considered) as an unreliable supply.
'We won't be doing that, but what we will be looking at is sensible, forward looking, prospective means to ensure that Australians get access to their gas.'
While Mr Bowen wouldn't be drawn on whether this would mean ramping up gas supplies, or creating an East Coast Gas Reserve, he said it was a 'reasonable request' to ensure 'Australian users get access to Australian gas'.
The review will also look at consolidating the Australian Domestic Gas Security Mechanism, Gas Market Code and Heads of Agreement with major east coast gas exporters to 'holistically' ensure policy can support the 'efficient supply of gas to industrial users, domestic users, and to the energy system'.
Separately, Mr Bowen also commented on Adelaide's bid to host climate conference Cop31 in 2026, with negotiations at a standstill due as Turkey also pitches for the rights.
The McMahon MP said while the bidding issue 'has not yet been resolved,' Australia had the support of the Western Europe Group.
He also declined to give an estimated cost for the event, but said there would be 'revenue opportunities' through sponsorship and attendance fees.
'This is a remarkable opportunity for Australia. It's the world's largest trades fair,' he said.
'It gives us an opportunity to talk to the world about Australia's capacity to help them decarbonise.
'It's a remarkable opportunity for the Pacific (to) put their issues on the table. If and when we're successful, of course, we'll have more to say about costs.'