CHECK AGAINST DELIVERY

I begin by acknowledging the Kaurna people, the Traditional Custodians of the land on which we gather today.

I pay my respects to their Elders, past and present, and extend that respect to all Aboriginal and Torres Strait Islander peoples with us today.

I’d also like to acknowledge:

• Samantha McCulloch, Chief Executive of Australian Energy Producers
• Cecile Wake, Chair of Australian Energy Producers

Good morning, everyone.

It’s always great to be in Adelaide, and especially good to be here for this important event.

The stakes for energy security have rarely been higher.

Since the outbreak of the conflict in the Middle East and the effective closure of the Strait of Hormuz, Australia has been confronted with a truth that many of the people in this room have been arguing for years:

Energy security isn’t abstract.

It’s the price at the bowser, the feedstock available to our manufacturers, and the measure of our country’s ability to function.

And it isn’t guaranteed.

It’s something we must create and maintain.

The Albanese Government’s response to the crisis has been swift.

The National Fuel Security Plan provides a coordinated response across the Commonwealth, States, and Territories.

We have pursued fuel diplomacy and supported the release of emergency reserves.

And, by halving the fuel excise, we have taken steps to ease the burden on Australian businesses and families.

It’s worth recognising the hard work of the many people who helped make that swift response possible.

In responding to this crisis, we’ve been reminded of something very important:

Australia’s standing as an energy producer that can meet domestic demand and help our regional partners is one of our nation’s most durable and significant strategic assets.

And it’s our international standing which has delivered for us in this global crisis.

Australian LNG has been the backbone of our international partner’s energy security for decades.

And through recent bilateral meetings with our neighbours in the Asia-Pacific and our partners, the Prime Minister has reinforced Australia’s standing as a reliable supplier of LNG, while securing vital assurances for future supplies of petrol, diesel and fertiliser.

The direct linkage between our LNG exports and our national fuel security cannot be overstated.

It matters that Australia can be counted on in times of stress.

That reliability is down to the hard work and dedicated advocacy of Australia’s energy producers.

And as the Prime Minister emphasised in Western Australia recently – the middle of a global fuel crisis is the worst possible time to jeopardise our international partnerships, or the investment that underpins them.

Hundreds of billions of dollars of investment have built Australia’s gas and resources industries, supporting thousands of regional jobs and communities across the country.  

The revenues flowing from Australia’s oil and gas sector have funded hospitals, schools, and the safety net that many Australians rely on.

As you would all know, the Albanese Government has set the country on a path to Net Zero by the middle of this century.

It’s our role – our responsibility – to make that path as predictable and as fair as possible.

That means co-designing the frameworks that will guide your operations and investment choices.

And it means getting the settings right.

With that in mind, I’d like to use the remainder of my time this morning to discuss three topics:

The Australian Domestic Gas Security Mechanism, the Offshore Petroleum Acreage Release, and our ongoing work on carbon capture and decommissioning.

Last December, the Government released the Gas Market Review Report, which encompassed a review of the Australian Domestic Gas Security Mechanism, the Gas Market Code, and the Heads of Agreement with east coast LNG exporters.

It reflected a clear-eyed assessment of major issues facing Australia’s gas market.

The Review recommended fundamental reforms to improve the domestic gas market and ensure supply for industrial, commercial, and household use.

As part of our response, the Albanese Government announced it would progress detailed design of a prospective domestic gas reservation scheme.

The Government has announced it will introduce a domestic gas reservation scheme that will require gas exporters supply a proportion of their total production to the Australian market – equivalent to 20 per cent of exports, from 1 July 2027 – ensuring Australians have the affordable gas they need.

The 20 per cent domestic reservation will put strong downward pressure on domestic gas prices, shield our industry and households from global price volatility, and ensure Australia’s energy security by avoiding potential gas supply shortfalls.

The Government will legislate the new domestic supply obligation and commence further targeted consultation on the final design details.

I know many people in this room have questions.

That’s exactly why we’re committed to consultation.

In the coming days, we will release a consultation paper, followed by additional industry roundtables to continue engaging on the design of the reservation.

I also want to note that last Friday, Minister King received advice from industry and experts that the east coast market has sufficient supply to meet Australian demand in the third quarter of this year.

It means no further action will be required under the Australian Domestic Gas Security Mechanism.

If Australia’s outlook changes, the Albanese Government will not hesitate to take necessary action in the national interest to secure domestic supply for Australian consumers.

The second subject I’d like to canvass this morning is the recent offshore petroleum acreage release.

Last December, Minister King announced five new areas would be opened up for bidding in the Otway Basin.

And two weeks ago, she announced the approval of a new production licence to develop the Annie gas field off the Victorian coast, to support additional supply to the east coast market.

The Government also announced it is seeking nominations of new areas for offshore petroleum exploration in the Gippsland and Bass Basins.

Many of our existing production fields are already mature.

Without new exploration and investment, we face a structural decline in supply that will make it harder to meet our energy needs and fulfill export contracts.

The Gippsland and Bass Basins offer the opportunity to unlock new petroleum sources using primarily existing infrastructure.

Unlocking them will help bring down costs, reduce risks, and allow new titleholders to build on work that’s already been done.

Gas remains an important transition fuel as we move toward Net Zero, and carbon capture and storage will play an important part in that goal.

This is an area where Australia has a real opportunity to build a world-leading industry.

I’ll say more about that shortly.

But for now, I want to emphasise that this recent announcement signals that the Government remains committed to domestic oil and gas production.

We understand the infrastructure and investment requirements for energy producers.

And we know that energy security requires expanding supply, not just managing demand.

As you all know, the Albanese Government has committed to reducing Australia’s emissions by 62 to 70 percent by 2035, and to Net Zero by 2050.

The Climate Change Authority, the IPCC, and the International Energy Agency all recognise CCS as an important tool for decarbonisation, especially for hard-to-abate industries and residual emissions that can’t be curtailed through electrification alone.

The Albanese Government is building domestic CCS capabilities to reduce emissions, support our Indo-Pacific partners to decarbonise, and to grow our economy.

Minister King has now declared three offshore greenhouse gas storage formations. The Calliance formation, Cliff Head and in March this year, the Reindeer formation.

These are positive steps that will help bring these projects to life.

We are also progressing the regulatory framework under the Offshore Petroleum and Greenhouse Gas Storage Act to ensure it remains fit for purpose as the industry scales.

And we are taking steps to enable transboundary movement of carbon dioxide for offshore CCS, which will help position Australia as a regional hub for carbon management.

On decommissioning, there will be substantial work and opportunity ahead as fields mature.

Australian technology and workers are already engaged on projects in Northwest WA and the Bass Strait, and the Government remains committed to the growth of a domestic decommissioning industry.

I note the AEP’s participation in both the Decommissioning Industry Forum and the UK-Australia Decommissioning Partnership MoU.

This year has been clarifying.

It has reminded us that energy is the thing that keeps the trucks moving, keeps our manufacturing sector humming, and keeps the economy functioning.

Australia’s energy producers have always understood this.

The Albanese Government’s job is to set the policy framework that allows this industry to do what it’s always done well:

To produce, to invest, to innovate, and to produce the fuel that keeps our country running.

Through mechanisms such as the Gas Market Review, the ADGSM, the acreage release, and the CCS framework, that’s what we’re committed to.

These initiatives are all part of a coherent vision for an Australian energy sector which continues to deliver for this country through the transition to Net Zero and beyond.

The road ahead will not be without challenges.

As the crisis in the Middle East has shown, the global energy system – which Australia is part of – remains vulnerable to disruption.

However, Australia’s standing as a trusted, reliable energy partner – and the strength of the producers represented in this room – gives us the resilience to manage shocks and keep our transition on track.

Australia has navigated challenging moments before.

And, just as we will this time, we have done so by backing our industries and our workers – and being guided by the long-term national interest.

I look forward to working with you all to make that happen.

Thank you.