Make a submission: Published response
Published name
What category best describes your interest in gas? You can tick more than one.
1. Do you use any international and/or domestic forecasts to inform your outlook of the gas market?
Domestic forecasts for a benchmark production consumption cost.
2. What role do you see gas-fired generators playing in supporting Australia’s 82% renewable energy targets and beyond?
They have a key part to play especially during the transition period to renewables between 2023 - 2033.
3. How will the expected trends in demand from gas-fired generators impact other gas users?
The expected rise in demand may lead to increased gas prices and demand, potentially boosting local revenues and necessitating infrastructure investment. However, it also requires careful management of market dynamics, environmental impacts, and regulatory considerations. The global shift towards renewable energy poses a long-term challenge, underscoring the need for the Maranoas economic diversification and sustainable development.
4. What should government do to consider managing these impacts and to mitigate energy peaks caused by regional or seasonal variations?
Investing in renewable energy sources and storage solutions to reduce reliance on gas, implementing energy efficiency measures, and encouraging demand-side management to smooth out peaks. Upgrading energy infrastructure for better integration of diverse energy sources and improving grid resilience is crucial. The Government should develop policies that support a gradual transition from fossil fuels to cleaner alternatives, ensuring a stable energy market and protecting consumers from volatile prices. We need to share resources and incentivise the right practices and technology to further aid adaption.
5. How feasible, and at what scale, are alternatives to natural gas for the electricity sector?
Transitioning from gas to alternative technologies like solar and wind is increasingly feasible, however there are aspects that are not well considered like end of life and waste streams. In this part of Queensland solar power has become significantly cost-effective and the costs for these renewables have dropped, making them competitive with traditional energy sources. Whilst hydroelectric power remains a reliable alternative, we need smaller hydro systems provide a more sustainable option with fewer environmental impacts.
Nuclear power, faces challenges such as high capital costs, safety, and waste concerns however advancements such as Small Modular Reactors (SMRs) are making nuclear more viable.. Biomass and biofuels are viable but still depend on the amount of sustainable biomass available and our populations here are smaller so may not scale.
As a council on the Great Artesian Basin, geothermal energy, may prove a consistent and reliable source if technologies can be available to sustain base load power. Additionally, the role of energy storage technologies, like large-scale batteries are crucial for integrating intermittent renewables into the grid. Complementing these sources, should be demand response and energy efficiency measures to support regional needs.
6. How much longer will you continue using gas as a fuel source or feedstock for your business? Do you think your consumption of gas will decline over time, and if yes, at what rate?
We anticipate that we will continue to use gas at least over the next two decades. As a gas infrastructure owner who buys gas, our consumption will decline in direct correlation to the presence of the sector.
7. Are there alternatives that your business can use instead of gas (for example electrification, hydrogen, biomethane or circular economy inputs)? What barriers exist to using these alternatives? How can the substitution of gas be accelerated?
Electrification is most likely the obvious alternative given the nature of our business. As a regional council we are exploring alternatives such as electrification, hydrogen, biomethane, and circular economy inputs is a viable strategy. If electricity is viable it still faces challenges in infrastructure development and grid capacity. Hydrogen, requires advancements in production, storage, and distribution. Biomethane offers a direct substitute for natural gas, how needs technology scaling and base line amounts which may prove problematic. We do believe that as the Circular economy matures there is an ability to explore advanced waste processing however this needs investment in facilities. We need a combination of supportive policies, infrastructure investment, community engagement, industry partnerships, financial incentives, to align with local economic and environmental objectives.
8. What factor/s influence your willingness to adopt electric appliances or processes? How could governments support small businesses to decrease gas consumption?
AS a local level of government, other governmental standards and contracts are often barriers to the uptake of alternatives. In addition, if costs are manageable and financing and investment in the right spot the uptake would be seriously considered.
9. What role might carbon capture, utilisation and storage (CCUS) and negative emissions technologies (NETs) (for example direct air capture and carbon dioxide removal) play in decarbonising industrial processes that are hard to abate in your business or industry?
Construction emissions from industries like cement, steel, and chemicals, are difficult to reduce and CCUS can lower their carbon footprint and align with broader sustainability and climate goals as well as offering new job creation.
NETs address residual emissions, but face challenges like high implementation costs and the need for technological advancements, necessitating investment support and innovation within the region.
10. If your home or small business gas appliances (stove, heating, or hot water system) stop working, would you prefer to keep using gas or switch to an electric appliance?
Gas is an efficient and low cost way to access energy. Cost is the biggest factor as well as consistent quality of heating.
11. How can governments, industry and households work together to manage impacts for homes?
Government policy, industry innovation, collaborative education programs, public private partnerships making it easy to transition.
12. What do you see as the role of gas in Australia’s net zero transformation?
For Australia it needs to offer a cleaner alternative to coal in the short to medium term whilst renewable capacity is built. Ensure it has a key role in supporting grid stability, especially given the intermittent nature of renewables. Underscoring the need for its gradual replacement with more sustainable options, including electrification and low-carbon technologies like hydrogen blending and carbon capture. Getting this transition right is important.
13. What action is your industry or company taking to reduce greenhouse gas emissions and does gas use have a role to play?
Our council is developing a customised net zero strategy.
14. How can Australian LNG accelerate global decarbonisation without compromising energy security or affordability?
Australian LNG can act as a cleaner transitional fuel by diversifying energy sources. For LNG to effectively contribute to decarbonisation; it's crucial to invest in renewable energy and technologies like green hydrogen and energy storage, alongside implementing carbon capture and storage in LNG production. This approach should be part of a broader transition strategy, supported by government policies and international collaboration, to gradually shift towards a net-zero future while balancing economic and environmental considerations.
15. What measures will increase the transparency of LNG supply chains, including their environmental, social and governance impacts?
Regulatory frameworks and third party auditing including supply chain tracking.
16. Does current gas transport and storage infrastructure support the changing role of gas in the residential and commercial sector? If inadequate, what is needed and who should provide the change?
As the role of gas evolves, the current gas transport and storage infrastructure may require significant modifications. These include enhancing capacity and flexibility to accommodate new usage patterns and alternative gases like hydrogen or biomethane, as well as upgrading for safety and efficiency. Integration and adaptation for transporting and storing alternative gases will be key. This necessitates substantial investment, which could come from a blend of government funding, private investment, and consumer tariffs, supported by clear regulatory frameworks. Collaboration among stakeholders is essential to ensure that development aligns with environmental goals and the evolving needs of the sectors.
17. What role will LNG – and Australian LNG in particular – play in your country’s energy transition?
Still a significant role for the next two decades.
18. What is your economy’s current LNG demand and how do you predict this will change through to 2035 and beyond to 2050?
Globally demands have been increasing, there has also been significant geo political activity playing into this. I see that this will peak in about 2040 as the globe shifts to alternatives.
19. What options should the Australian Government consider to ensure international investment in Australian LNG projects remains competitive?
Strengthening trade relationships and making sure the regulatory environment is best practice. Investment and incentives should focus on the best for australia not just the international investor.
20. What value do you place on low or net zero emissions LNG production?
Low or net zero emissions LNG production holds significant value in the context of global energy and environmental sustainability. It allows increasing demand for cleaner energy sources, whilst offering competitive advantages in a global market that is more conscious about climate change. Greener production is critical to tightening global environmental regulations which reduce greenhouse gas emissions. Low or net zero emissions LNG projects support ESG goals and will drive technical innovation in the sector and enhance our energy sectors reputation.
21. What is the role of offshore acreage releases in the context of consumer demand and emissions targets? What factors should the Australian Government consider when releasing acreage?
Offshore acreage releases are often driven by the need to meet consumer energy demand. As the population grows and the economy expands, the demand for energy increases. The government must assess whether the current and projected energy demands can be met through existing resources or if new exploration is needed.
22. How could the offshore petroleum regime be improved to meet the objectives of the strategy?
Stricter environmental regulations, incentives for sustainable practices, transparent decision making, integration with renewables and good monitoring.
23. What are the major barriers and opportunities for new supply? How can the Australian Government prioritise, mitigate or manage these?
Barriers include High development costs, market uncertainty , infrastructure limitations, community concerns. The government should streamline processes and make sure investment is in the right spot such as storage, energy grid and transport. In addition the Govt needs to create a strong long term policy stance with good consultation and engagement.
24. What are some of the opportunities for gas production in Australia in the medium (to 2035) and long‑term (to 2050)? How could these necessary developments support decarbonisation consistent with achieving emissions reductions goals?
Hydrogen strategy, carbon neutral gas and incentives for hard to abate sectors. In the medium term (to 2035), natural gas can replace more carbon-intensive fuels and balance the intermittency of renewables, while technological advancements like carbon capture and storage (CCS) can mitigate emissions. Looking towards 2050, the focus shifts to producing blue and green hydrogen from natural gas, aiding in decarbonizing hard-to-electrify sectors and developing carbon-neutral LNG. To align these developments with decarbonization goals, Australia can invest in CCS/CCUS technologies, renewable energy integration, and create supportive policy frameworks. This approach, coupled with international collaboration and R&D in low-emission technologies, positions Australia’s gas sector as a key player in both national and global emissions reduction efforts, while maintaining energy security and economic stability.
25. How can the Australian Government better communicate and provide more transparency to local communities regarding gas projects?
A proactive and inclusive approach through open and ongoing dialogues with local communities through public consultations, community meetings, and accessible online platforms. Additionally, implementing transparent reporting and monitoring systems, where data on environmental, social, and economic impacts are openly shared, can provide communities with a clearer picture of the projects. Collaborating with local leaders, incorporating community feedback into decision-making, and ensuring that the benefits of gas projects, such as job creation and infrastructure development, are clearly communicated and realised by the local communities are also crucial.
26. What opportunities exist to improve engagement and consultation processes with industry?
Regular industry forum and roundtables.Collaborative policy development with community. Public private partnerships. Regular impact assessments.
27. How can all levels of governments better support the industry to engage with First Nations people and community groups?
Ensure that meaningful and respectful dialogue takes place by culturally competent people.
28. How can Australia support the potential for cost-effective, safe, and verifiable CCS projects, including for the gas sector, other industries and our region?
This can be done by a combination of ways such as investing in Research and developmentt, incentivising ccs projects with well established regulatory frameworks and good engagement. Cross sector collaboration should be encouraged both dometically and internationally.
29. How can the Australian Government better communicate and provide more transparency to local communities regarding CCS projects?
Forums, newsletters, communication to local government.
30. How fit for purpose is Australia’s gas transmission and distribution network?
Much of Australia's gas infrastructure is well-established and has been reliably delivering gas for decades. Ongoing maintenance and upgrades are essential to maintain its reliability, especially for older pipelines and facilities. The network's capacity to meet current and future demand is a critical factor. In areas experiencing population growth or increased industrial activity, the network might need expansion or reinforcement. As Australia moves towards a more renewable energy-dominated grid, the role of gas infrastructure in energy storage (like power-to-gas technologies) and in balancing intermittent renewable sources becomes more important. The network's ability to adapt to these new roles is crucial.
31. What changes should be made to the transmission and distribution network to prepare for the changing profile of gas demand in Australia? What risks and opportunities would this entail?
The transmission and distribution network needs upgrades to accommodate new gas sources like hydrogen and biogas, expansions or reinforcements in areas of growing demand, and integration with renewable energy systems for efficient energy storage and balancing. Enhancing the network's safety, environmental compliance, and cybersecurity resilience is also essential.
32. Could the construction of LNG import terminals contribute to improving energy security in Australia?
Yes.
33. Under what conditions would LNG import terminals be commercially viable in Australia?
These terminals would be dependent upon the supply and demand for domestic gas, the costs of production, the regulatory environment, flexibility and scalability, national policy and security as well as the costs of technology as well as the health of the global market.
34. Are you able to attract and retain the workforce and skills you need? How will these shift as we transition to net zero emissions?
Retention of workers is problematic at this point. There will be a need for a shifting set of skill requirements which will need training and development.
35. What are your long-term business and investment plans beyond 2035? How might these affect local economies, employment and communities?
We do not plan out this far, we plan in 10 year horizons, however changes to the industry may force us to look further out.
36. Describe the projects or best practice examples of industry engagement with the local community, as well as the benefits these projects bring to the people and regional economy.
As a council we engage with the resource sector in relation to major projects all the time. They actively engage with the community through forums, community events and newsletters that are effective at increasing understanding. They also visit councils to explain projects and are involved in the community.
37. How has the oil and gas industry impacted the local economy and employment opportunities in your region?
$355m in GRP - 34% Maranoa GRP; $22m in wages with 177 jobs at 20% employment in the region, $171m in local business and community with $18.1 billion in royalties paid. Overall this supports 1549 jobs.
38. What actions will assist workforce retention, upskilling and mobility in your community as the economy transitions to net zero emissions?
Career promotion, traineeships and apprenticeships, curriculum development and education forums and workshops.
39. What are the risks to Australia’s domestic gas security in the medium (to 2035) to long-term (to 2050) for your industry and how can these be addressed?
Depletion of domestic gas reserves is a significant risk as well as uncertainty in the market with adjustments to policy made quickly and without consultation.
Mitigation: Encourage gas exploration and development within the region while adhering to environmental regulations. Promote responsible resource management and diversify energy sources, such as exploring renewable energy options.
40. What do you see as the biggest risk to the ongoing affordability of Australia’s domestic gas supply? For example, what are risks to affordability in the wholesale or retail market?
Geopolitical uncertainty, policy uncertainty, global and domestic prices and policy and regulation. Supply shortages and retailer pricing is the largest risk especially price pass through issues.
41. What reforms can be made at a Commonwealth, state, territory, or industry level to allow gas supply to be more responsive to domestic demand signals?
Increased flexibility can come from reforms to make the gas supply more responsive to domestic demand signals in Australia involve enhancing market transparency by sharing comprehensive gas market data, promoting third-party access to pipelines, implementing gas reservation policies for domestic use, and regularly reviewing market rules and regulations. Additionally, the establishment of gas trading hubs, industry collaboration, government support through incentives and policy certainty, improved demand forecasting, streamlined entry for new market players, and investment in gas storage facilities are essential measures.
42. What actions are available to lower gas costs, including substitution and new supply, to provide certainty to consumers? How would these actions further the Australian Government’s decarbonisation goals?
Lower gas costs acould include diversifying energy sources by substituting traditional gas with cleaner alternatives like hydrogen and biogas. Additionally, increasing new supply sources through exploration and development of unconventional gas resources and investing in gas storage infrastructure can enhance supply security and price stability.
43. What opportunities exist in your industry to decarbonise supply chains?
Opportunities exist to decarbonize supply chains by adopting sustainable procurement practices, promoting energy-efficient transportation and logistics, and sourcing goods and services from low-carbon or renewable sources. By integrating environmentally friendly practices into supply chain management, such as reducing emissions from transportation and embracing circular economy principles, the industry can contribute to reducing its carbon footprint, mitigating climate change impacts, and promoting sustainability in the procurement and logistics processes.
44. Do you use any forecasts of gas supply to inform your outlook of the gas market? If so, what are they?
Basic industry outlook and information sessions from industry.
45. Are there any limitations or caveats associated with these scenarios? How do you address these limitations?
We are a small purchaser of gas and balance cost with need.