Australia is facing a gas crisis due to a mismatch between domestic supply and demand in the east coast market, driven by rapid growth in the LNG export market and the absence of a comprehensive national energy policy. The resulting high energy prices and unfavourable contract conditions have wide-ranging impacts for the Australian economy, particularly for industries reliant on gas. Without any changes, gas prices could continue to rise, leading to negative impacts on industry profitability – potentially leading to closures and job losses. This creates big risks for Australia.
Fortunately, there is a big solution: Demand side improvements, including energy efficiency and switching from gas to alternative low carbon energy sources. This has been largely overlooked in discussions on the gas crisis to date.