The test for the Mandatory Code of Conduct will be if it can support the investment that is urgently needed to bring on new gas supply to keep the lights on for Australian households and businesses and put downward pressure on prices.
Australian Petroleum Production & Exploration Association (APPEA) Chief Executive Samantha McCulloch said the industry was committed to providing secure, reliable and affordable energy.
Ms McCulloch said: “The announcement today suggests that the government has taken on board some of the industry’s feedback, however we await the final text of the Code to fully understand whether the industry’s concerns and recommendations have been addressed.
“The number one test will be whether the Code delivers the confidence producers need to make the urgent investment in new gas supply necessary to avert future shortfalls and deliver the reliable and affordable energy needed by all Australians.”
The Australian Competition Consumer Commission (ACCC) have made it clear that new gas production is needed.
The ACCC forecast potential structural shortfalls – when gas supply falls below gas demand on an ongoing basis – as early as 2027 with potential peak shortfalls even sooner.
The ACCC go on to state: “Without expansion in production, we anticipate there will be gas shortfalls [that] would place continued upward pressure on prices in the domestic gas market, as well as pressure on the electricity market.”
Ms McCulloch said: “At a time when Australian households and businesses are facing cost-of-living pressures, a range of independent authorities have made it clear that bringing on new gas supply is the key to putting sustained downward pressure on prices and ensuring supply security for manufacturers, power generators and households.”
