What does net zero mean for Australia’s domestic gas market?
A number of speakers have been asked to address the issue of net zero in the lead up to the 2022 Australian Domestic gas Outlook conference. This comes as a result of new found attention on emissions from fossil fuels following the Paris climate conference (COP21).
It is known that gas remains a vital part of most country’s energy, using it as a lower emissions alternative to coal.
What does the future hold for Australia’s gas sector in this transition, and how should it respond?
Defining net zero for the gas industry
“A true net zero by 2050 commitment would be a seismic shift for the gas industry. No new projects, no new gas infrastructure, reduced exploration; gas in Australia would be a sunset industry,” said Bruce Robertson, from the Institute for Energy Economics and Financial Analysis (IEEFA)
Maintaining standards of living and energy security
David Maxwell from Cooper Energy said, “Natural gas will continue to play an essential role in maintaining the energy security Australians are used to, even in a net zero future”.
“In 2021 alone our members signed 19 new gas supply agreements with domestic customers and announced more than $27 billion of investment in new projects to continue providing reliable and secure energy for Australia,” said Andrew McConville, CEO of the Australian Petroleum Production and Exploration Association (APPEA).
Gas as a low emissions energy source
Mr Davis believes natural gas is currently assisting industry and manufacturing reduce greenhouse gas emissions.
As a cleaner energy source, natural gas is pivotal to securing Australia’s net zero emissions future,” claimed Mr McConville.
Gas supporting the transition to intermittent renewable energies
A large majority see gas as vital to the transition of energy as it provides backup support for irregular renewables.
“Ongoing investment in maintaining natural gas supplies will be required to ensure Australians can continue to access the reliable supply of energy we are all used to,” said Mr Berman, who is confident that gas is essential as a power supply back-up in the transition.
Shelley Roberston from Mineral Resources added that gas will play a key role in providing reliable fuel when energy sources, such as solar and wind are unavailable.
Outlook for gas in a net zero future
It is noted that natural gas could provide as a fuel source for hydrogen and will be critical to the economy of Australia for decades to come.
The gas sector sees hydrogen as well as alternative fuels as key to their future.
The Australian Domestic Gas Outlook conference will bring together over 300 attendees and host high-level discussions that will help shape the future of domestic gas.
To see a full snapshot of the conferences content, view the agenda here.