Australia’s Upstream Industry Stepping up Gas Game With Reform Proposals

Wedoany.com Report-Aug. 24, Australian Energy Producers (AEP), representing Australia’s upstream oil and gas industry, has submitted a set of proposals to the Gas Market Review to strengthen the country’s natural gas supply. The submission emphasizes a prospective reservation policy to increase domestic gas availability, aiming to ensure a stable and competitive market while supporting long-term energy needs.

Samantha McCulloch, AEP’s Chief Executive, stated: “The Government’s Future Gas Strategy makes it clear that natural gas will remain critical to Australia’s energy security through to 2050 and beyond. This requires a strong, stable and competitive east coast gas market that delivers more gas when and where it’s needed, while providing certainty for existing and future investment.” She highlighted the need for policies that encourage investment and streamline approvals to support both domestic supply and the liquefied natural gas (LNG) sector.

McCulloch further noted: “This should include reforms to encourage more investment, streamline approvals, remove reporting duplication, and facilitate expanded gas pipeline and storage capacity. Actions must also support a robust LNG sector which goes hand-in-hand with a well-supplied domestic market. Australia’s abundant natural gas resources have underpinned decades of economic growth, providing generations of Australians with reliable and affordable energy.”

AEP’s recommendations include a three-track approach: establishing a flexible, prospective east coast gas reservation linked to new supply, taking immediate actions to align new gas projects with domestic demand, and ensuring market-driven pricing to maintain Australia’s role as a reliable regional energy partner. The organization also advocates sunsetting the Gas Market Code, heads of agreement, and Australian Domestic Gas Security Mechanism alongside broader market reforms.

Additional proposals focus on accelerating gas supply through fast-tracking development-ready projects, streamlining approvals for new and expanded gas initiatives, and enhancing pipeline and storage capacity. AEP also emphasizes sustainable exploration programs and integrating natural gas and carbon capture, utilization, and storage into energy policies. Streamlining market operations and harmonizing reporting are identified as immediate steps to improve efficiency.

These initiatives aim to secure affordable and reliable gas supplies, support economic growth, and maintain Australia’s competitive edge in the energy sector while meeting long-term regional energy demands.