The Federal and South Australian governments have signed a new energy agreement that includes the unlocking of new gas supplies.
The $1.08 billion State Energy and Emissions Reduction Deal contains a gas target of an additional 50 PJ per annum by the end of 2023 and 80 PJ per annum by 2030 in an effort to increase the supply of reliable and affordable gas to both SA users and the wider east coast market.
The agreement also includes a $400 million investment in emissions reduction projects including hydrogen, carbon capture and storage and electric vehicles.
The Commonwealth will contribute $660 million as part of the agreement while the SA Government will provide $422 million.
Prime Minister Scott Morrison said the deal would help reduce prices and create jobs.
“This means getting more gas into the market to support the increase in renewable solar and wind power coming into the electricity system.
“One works with the other to deliver lower cost, lower emissions and reliable power.
“This deal also makes sure that Australia gets ahead and stays ahead in the new energy economy by supporting the next wave of technologies, with a $400 million commitment for investing in key areas that have the potential to deliver new industries and opportunities for South Australians,” he said.
The Federal Government said achieving improved lower cost gas production in the Cooper Basin and a step-change in gas production in the Otway Basin would be a key focus.
SA Premier Steven Marshall said the agreement would help secure the state’s energy supply.
“This agreement also coordinates our efforts to deliver a hydrogen export industry in SA, deliver carbon capture and storage to reduce emissions, deliver the infrastructure needed for electric cars, and generate new revenue for farmers from carbon reductions,” he said.
“Put simply – this agreement is going to lower power bills for South Australians and create jobs in the fast-growing renewables industry.”
Australian Petroleum Production and Exploration Association (APPEA) CEO Andrew McConville said the deal showed how natural gas was at the forefront of both emissions reduction and energy security.
“Natural gas plays an important role in balancing renewable energy, ramping up and down to match supply and demand,” he said.
“Gas is affordable, reliable and good for the environment.”
For more information visit the Department of Energy website.