Securing critical gas supply and infrastructure into the future

The Morrison Government has today released the first full National Gas Infrastructure Plan (NGIP) and the Future Gas Infrastructure Investment Framework to help secure our gas supplies over the next 20 years. 

As part of the Morrison Government’s gas-led recovery, the NGIP sets out a long-term development pathway that locks in supply for households and manufacturers, and five priority actions for east coast gas supply and infrastructure out to 2040. 

Key findings of the NGIP include:

  • At least one new basin will need to be brought online before 2030 to meet projected east coast gas demand;
  • Critical basins to unlock out to 2030 include the Narrabri gas project (NSW), the Beetaloo sub-basin (NT), the Galilee basin (QLD), and the North Bowen basin (QLD).
  • Strategic expansions to existing pipeline capacity and the construction of entirely new pipelines will be needed to transport gas supplies to east coast markets; and
  • Expanded transportation capacity from north to south is required as northern supply expands and southern supply declines.

Minister for Industry, Energy and Emissions Reduction Angus Taylor said the NGIP signals to the market priority actions for ensuring affordable, reliable gas and provides a pathway to unlocking new supply. 

“The Morrison Government is serious about gas and acknowledges the important role it plays supporting jobs, food-production, manufacturing, industry, exports and energy supply,” Minister Taylor said. 

“The National Gas Infrastructure Plan supports a strategic approach to gas infrastructure investment over the next 20 years and aims to guide industry to priority areas that need to be addressed to avoid a supply shortfall.

“This will ensure our domestic gas prices remain internationally competitive. The United Kingdom and Europe have experienced price increases over 400 percent in recent months due to gas shortages.

“The Government cannot sit back and allow that to happen here. Australian prices have remained 60 to 70 per cent lower than prices in Asia and Europe even in light of this major energy shock. 

“Unlocking basins and getting gas to where it is needed will support our job-creating industries. Our focus on gas and energy security has helped to grow our manufacturing sector, which is now at more than 1 million jobs – levels not seen since 2009.” 

The Government will implement priorities in the NGIP through the Investment Framework, which lays out the principles for potential Government support. 

The Government is also calling on industry to contribute to a new Expression of Interest (EOI) process to identify critical projects that require support to accelerate delivery.  

The EOI seeks submissions on critical mid-stream gas infrastructure projects that meet both the priorities identified in the NGIP and the principles of the Investment Framework. 

This includes projects that enhance competition in the market and allows for the consideration of gas infrastructure that also supports hydrogen, carbon capture and storage, and biomethane. 

“The Government wants industry to make these investments, and the Investment Framework and EOI will allow us to take action to accelerate the development of critical projects to Final Investment Decision,” Minister Taylor said. 

The NGIP has been informed by gas market modelling, analysis and stakeholder engagement to determine the most cost-effective solutions that ensure adequate supply and deliver the greatest benefits for gas consumers.

It follows the release of the National Gas Infrastructure Plan: Interim Report in May 2021, which provided practical solutions to alleviating risks of gas supply shortfalls in the near term and $38.7 million in support for projects. 

The Government has committed to developing an ongoing series of NGIPs, with the next report to be delivered in late 2022. 

For more information visit: 

Media contact:

Minister Taylor's office 02 6277 7120