In this report, Australian Pipelines and Gas Association chief executive officer Steve Davies focus on government activity that has impacted gas markets and the pipeline industry.
So you may have noticed, the gas industry has been making headlines recently due to significant government activity that has impacted gas markets and the pipeline industry. The government has made interjections with the intent to determine outcomes through gas price caps and an increased scope of powers for the Australia Energy Market Operator (AEMO). These developments have all played out heavily in the media and are the likes of which we have not seen since the 1970s.
In response to these changes, our advocacy program and policy team has been working tirelessly to ensure the voice of the industry is heard. We have introduced several new narratives into the conversation, most recently focusing on the “cost of electrification” for the everyday person. Independent modelling from the parliamentary Budget Office has revealed that the cost of electrifying a suburb in Canberra would be an average of $26,000 per home to switch from gas to electricity. Through a few simple calculations, we were able to put a total cost of electrification in a region upwards of $130 billion, which is a total much higher than what has been estimated to date. This interjection resulted in much-needed debate on the cost of electrification and its impact on the gas industry, as well as a few days of media coverage for the APGA.
Our policy team has also been working relentlessly to inject commentary on the opportunity renewable gas provides to meet emissions targets and direct conversation around proposed changes to the industry. We have provided commentary on key topics including the safeguard mechanism, Australian domestic gas security mechanism, and state-based policy in Tasmania, New South Wales, and South Australia. You can have a look at the submission section of the website and see that we have made 24 submissions to the end of April in 2023 already. This is an unprecedented level of activity from governments across the country and I am sure that you are all experiencing the effects of this in some way, shape or form in your own organisations.
It is great that APGA has the capacity to match this level of activity and be a bigger part of the public conversation this year. I can see from the feedback that members are noticing. The additional resources APGA’s Owner Members have put into the enhanced advocacy program is the reason we have been able to keep the pace and make more of a difference. The work we are doing is critical to ensuring the role of gas and gas infrastructure in delivering a decarbonised future is understood, accepted and supported across Australia.
At APGA, we are committed to our 2050 vision and support a net-zero future for Australia. Within that, we believe that a multi-pronged approach to emissions reduction is necessary. As such, we are actively advocating for the introduction of a renewable gas target. Renewable gases, such as hydrogen and biomethane, represent a real, technically viable approach to lowest-cost energy decarbonisation in Australia. We see renewable gases playing a critical role in decarbonising gas use for both wholesale and retail customers. All that is needed now is a plan to deliver the integrated energy system of the future that delivers decarbonised liquid, gas and electricity to the country. I can write it in a single sentence but it is a huge task.
The theme of this edition of The Australian Pipeliner is as important as ever in our industry, with a focus on future fuels and emissions reduction. We believe that it is crucial to continue this theme throughout the year at the APGA, with a particular focus on the future of the industry and the role that renewable gases play. As such, we would like to extend an invitation to you to attend this year’s APGA Convention and Exhibition in Perth in October. Early bird is open now! We believe that this is an excellent opportunity to learn more about the industry, network with like-minded individuals, and stay up-to-date on the latest trends and developments, and how you can play a role in the future of the industry.
I hope to see you all there.
This article featured in the May edition of The Australian Pipeliner. Access the digital copy of the magazine here.
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