Australian businesses will be relieved by the federal government’s recognition that gas has a vital role in the nation’s transition to net zero.

A comprehensive strategy is needed to stabilise the gas market and provide additional certainty for potential investors, whose confidence has been softening in recent years, Australia’s largest and most representative business network said today.

“The Future Gas Strategy is sensible and reasonable in its approach. It indicates the government is committed to the role of gas in the energy transition,” ACCI chief executive officer Andrew McKellar said.

“Gas is essential for the future of manufacturing and value-adding in Australia and will play a crucial role in increasing domestic manufacturing to achieve ‘A Future Made in Australia’.

“A competitive gas market is necessary to ensure affordable, reliable and secure energy for Australia to 2050 and beyond.

“The warning bells have been sounding for long enough. There could be severe shortages of gas as early as next year.

“While the strategy will accelerate access to gas, the government must also take its foot off the brake by streamlining and simplifying approval processes for gas exploration and development.

“The federal government must reiterate to the states the important role of gas in the energy transition and work with them to remove regulatory barriers and access to new gas reserves.

“In the longer term, reducing gas-related emissions must happen to meet the net zero by 2050 target. We welcome the recognition of carbon capture and storage as an important component of the strategy.”

Australia’s LNG exports also have a central role in regional energy security and are a significant contributor to Australia’s trade balance and GDP.

“It is important that we continue to supply gas to maintain strong international relationships and trade reputation, as well as to maintain the confidence of international investors in Australia,” Mr McKellar said.