Governments and industries are now taking action to avoid higher energy costs for households and businesses.

In order to address the upcoming gas supply shortage, the Albanese government has signed a significant agreement with the largest producer of liquefied natural gas (LNG) on the east coast.

On Monday, January 22, Energy Minister Chris Bowen and Resources Minister Madeleine King announced new gas supply contracts of more than 260 petajoules—equivalent to 2½ years of gas-powered generation demand—up to 2033.

This gas will be sourced from the Bass Strait Project, operated by ExxonMobil’s local subsidiary, Esso, and part-owned by Woodside.

The government has signed a deal with ExxonMobil’s local subsidiary, Esso, and is part-owned by Woodside. Source: @exxonmobil_aus/X (Twitter)

The project taps into the gas fields in the Gippsland Basin off the southeast coast of Victoria.

This move comes in response to warnings from regulators that consumers in Australia’s southern states could face gas shortages from 2028, which could send skyrocketing energy bills.

The Australian Competition and Consumer Commission (ACCC) said in its gas inquiry interim report released in December: ‘Transporting gas from Queensland to the southern states will be increasingly important to cover these potential supply gaps.’

If not addressed, a gas shortage could lead to blackouts, as gas-powered electricity generators may be unable to operate during peak demand periods and meet supply shortfalls.

This new deal aims to prevent such a scenario, ensuring a steady gas supply to the wholesale market, where power generators and energy distributors can purchase gas.

Lower wholesale prices should, in turn, result in lower energy bills for households and small businesses.

The agreement with Woodside and Esso marks the second round of exemptions under the government’s Mandatory Gas Market Code. This code, which came into force in July 2023, sets a price ceiling of $12 a gigajoule (GJ) to ensure certainty for the producers and wholesale users.

However, suppliers can exceed the cap, subject to ministerial approval, if they prioritise sending gas to Australia’s east coast market rather than abroad.

The agreement is for more than 260 petajoules of gas from the Bass Strait Project. Source: @exxonmobil_aus/X (Twitter)

Mr Bowen stated: ‘The Albanese government’s gas code has now delivered commitments for gas supply that’s equivalent to what is needed for powering east coast gas power stations for five years.’

Further exemptions under the code to secure additional supply are also being assessed by the federal government.

However, the move has not been without criticism.

Opposition Energy Spokesman Ted O'Brien argued that the announcement was a concession by the federal government that the code of conduct was failing to boost supply.

‘What has proven to be the case is you can’t get gas flowing in this country unless you work outside of Labor’s own framework,’ he pointed out.

‘The only way you can get gas flowing in this country is if companies are given the opportunity to work outside of the policy framework Labor itself has put in place,’ Mr O’Brien added.

Despite the criticism, Ms King emphasised the importance of gas as 'insurance' for the energy grid.

She explained: ‘Gas is essential to supporting the nation’s energy grid, and the reliable supply of gas is crucial to keeping energy prices down for households and businesses.’

‘Gas is also indispensable in processing critical minerals and technologies such as wind turbines and solar panels,’ Ms King continued.

The ministers said the additional supply would directly feed into southern demand centres and ensure sufficient domestic supply to keep the downward pressure on gas prices.

So, what does this mean for you? In the short term, you may not notice any immediate changes.

However, in the long run, this deal could help keep your energy bills stable and ensure a reliable gas supply for your home and business.

Key Takeaways

• The Albanese government has signed new gas supply contracts with Esso and Woodside to address potential gas shortages and drive down prices.
  
• The agreement is for more than 260 petajoules of gas from the Bass Strait Project, which will help prevent energy supply gaps forecast to begin in 2028.
  
• This deal is the second set of exemptions under the Mandatory Gas Market Code, which sets a price ceiling but allows for ministerial exemptions if supply is prioritised to the Australian market.
  
• Energy Minister Chris Bowen emphasised that the secured gas supply will help reduce energy prices and support the reliability of Australia's energy grid as the country moves towards renewable generation.
  

What are your thoughts on this new gas deal? Do you think it will help to keep energy prices stable? Share your thoughts in the comments below.

 

[I'm Mal]

wasn't it liebour said there would be no carbon tax? stop burying your head in the sand.

 

[I'm Mal]

Are you serious? The corrupt LNP are the reason Australia are in this position. Billions of dollars for projects that never existed nobody except the mega rich mates from any of Morrison's, potato head Dutton and brain dead unfaithful Joice ruined this country while the rich got richer at the expense of the poor. At least labour are helping those that need it most. It's a big hole LNP left us in and labour have cut the deficit left by Morrison and co by billions. But don't listen to the impartiality of experts and economists it doesn't fit with your narrative. LNP the most corrupt and hated party in Australia's history.

hahaha enjoy your liebour fantasy land. If it was not for LNP, Australia would be a third world country. If you received any government support payments during the pandemic, you should pay them back with interest for being so outrageously ungrateful. Your idol albo wanted more money paid out in welfare. That is the only reason the national debt escalated. It was brain dead albo, butler, marls, wong, chalmers et al and leprechaun joyce that that ruined the country. The hole was created after 23 May 2022 and blamed on the Morrison Liberal Government. But of course since you are towing the party line you stick rigidly to the script you have been given and ignore the reality that we now have the worst PM ever by far and the most reviled and incompetent bunch of clowns pretending to run the country.

 

[IAN3005]

Governments and industries are now taking action to avoid higher energy costs for households and businesses.

In order to address the upcoming gas supply shortage, the Albanese government has signed a significant agreement with the largest producer of liquefied natural gas (LNG) on the east coast.

On Monday, January 22, Energy Minister Chris Bowen and Resources Minister Madeleine King announced new gas supply contracts of more than 260 petajoules—equivalent to 2½ years of gas-powered generation demand—up to 2033.

This gas will be sourced from the Bass Strait Project, operated by ExxonMobil’s local subsidiary, Esso, and part-owned by Woodside.

View attachment 39766

The government has signed a deal with ExxonMobil’s local subsidiary, Esso, and is part-owned by Woodside. Source: @exxonmobil_aus/X (Twitter)

The project taps into the gas fields in the Gippsland Basin off the southeast coast of Victoria.

This move comes in response to warnings from regulators that consumers in Australia’s southern states could face gas shortages from 2028, which could send skyrocketing energy bills.

The Australian Competition and Consumer Commission (ACCC) said in its gas inquiry interim report released in December: ‘Transporting gas from Queensland to the southern states will be increasingly important to cover these potential supply gaps.’

If not addressed, a gas shortage could lead to blackouts, as gas-powered electricity generators may be unable to operate during peak demand periods and meet supply shortfalls.

This new deal aims to prevent such a scenario, ensuring a steady gas supply to the wholesale market, where power generators and energy distributors can purchase gas.

Lower wholesale prices should, in turn, result in lower energy bills for households and small businesses.

The agreement with Woodside and Esso marks the second round of exemptions under the government’s Mandatory Gas Market Code. This code, which came into force in July 2023, sets a price ceiling of $12 a gigajoule (GJ) to ensure certainty for the producers and wholesale users.

However, suppliers can exceed the cap, subject to ministerial approval, if they prioritise sending gas to Australia’s east coast market rather than abroad.

View attachment 39765

The agreement is for more than 260 petajoules of gas from the Bass Strait Project. Source: @exxonmobil_aus/X (Twitter)

Mr Bowen stated: ‘The Albanese government’s gas code has now delivered commitments for gas supply that’s equivalent to what is needed for powering east coast gas power stations for five years.’

Further exemptions under the code to secure additional supply are also being assessed by the federal government.

However, the move has not been without criticism.

Opposition Energy Spokesman Ted O'Brien argued that the announcement was a concession by the federal government that the code of conduct was failing to boost supply.

‘What has proven to be the case is you can’t get gas flowing in this country unless you work outside of Labor’s own framework,’ he pointed out.

‘The only way you can get gas flowing in this country is if companies are given the opportunity to work outside of the policy framework Labor itself has put in place,’ Mr O’Brien added.

Despite the criticism, Ms King emphasised the importance of gas as 'insurance' for the energy grid.

She explained: ‘Gas is essential to supporting the nation’s energy grid, and the reliable supply of gas is crucial to keeping energy prices down for households and businesses.’

‘Gas is also indispensable in processing critical minerals and technologies such as wind turbines and solar panels,’ Ms King continued.

The ministers said the additional supply would directly feed into southern demand centres and ensure sufficient domestic supply to keep the downward pressure on gas prices.

So, what does this mean for you? In the short term, you may not notice any immediate changes.

However, in the long run, this deal could help keep your energy bills stable and ensure a reliable gas supply for your home and business.

Key Takeaways

• The Albanese government has signed new gas supply contracts with Esso and Woodside to address potential gas shortages and drive down prices.
• The agreement is for more than 260 petajoules of gas from the Bass Strait Project, which will help prevent energy supply gaps forecast to begin in 2028.
• This deal is the second set of exemptions under the Mandatory Gas Market Code, which sets a price ceiling but allows for ministerial exemptions if supply is prioritised to the Australian market.
• Energy Minister Chris Bowen emphasised that the secured gas supply will help reduce energy prices and support the reliability of Australia's energy grid as the country moves towards renewable generation.

What are your thoughts on this new gas deal? Do you think it will help to keep energy prices stable? Share your thoughts in the comments below.

Time will tell....$125 a year?????? I believe it when I see it!!!!!!

 

[gbaerken]

Any savings proposed while the liebour circus is in office will be eaten up by higher taxes and charges. They have proven that nothing they say can be trusted and until such time as LNP is back in office, it is going to be more of "It won't be easy under albaneasy"

The only difference between the 2 parties is the the spelling. Don't forget Libs were in power when Mandates and Lockdowns were implemented and the did nothing about it. Vote independents in like they did in New Zealand and ditch this 2 party system which is taking us nowhere. We didn't have it before WW2 so it can be dispensed with.

 

[IAN3005]

The only difference between the 2 parties is the the spelling. Don't forget Libs were in power when Mandates and Lockdowns were implemented and the did nothing about it. Vote independents in like they did in New Zealand and ditch this 2 party system which is taking us nowhere. We didn't have it before WW2 so it can be dispensed with.

One part is as bad as the other....corrupt politicians

 

[Jennie]

I think if we stop sending our gas overseas we a great way of preventing a gas shortage.

It is sold overseas cheaper than we pay for it. We subsidise other countries.

 

[tumoulin]

AIRBUSALBO, the KING of broken promises, has stuffed up Australia BIG BIG TIME. He is wasting billions of taxpayer $'s .. I hope he and his govt. will never ever be re-elected again.View attachment 39836

LNP Propaganda.

 

[tumoulin]

One part is as bad as the other....corrupt politicians

Both major parties sell Australia out to multinationals. Australia and Kuwait export similar amounts of gas annually. Kuwait collects $20 billion in royalties. Australia collects $1 billion. Liberal, National and Labor made it so.

 

[Bob Kennedy]

Governments and industries are now taking action to avoid higher energy costs for households and businesses.

In order to address the upcoming gas supply shortage, the Albanese government has signed a significant agreement with the largest producer of liquefied natural gas (LNG) on the east coast.

On Monday, January 22, Energy Minister Chris Bowen and Resources Minister Madeleine King announced new gas supply contracts of more than 260 petajoules—equivalent to 2½ years of gas-powered generation demand—up to 2033.

This gas will be sourced from the Bass Strait Project, operated by ExxonMobil’s local subsidiary, Esso, and part-owned by Woodside.

View attachment 39766

The government has signed a deal with ExxonMobil’s local subsidiary, Esso, and is part-owned by Woodside. Source: @exxonmobil_aus/X (Twitter)

The project taps into the gas fields in the Gippsland Basin off the southeast coast of Victoria.

This move comes in response to warnings from regulators that consumers in Australia’s southern states could face gas shortages from 2028, which could send skyrocketing energy bills.

The Australian Competition and Consumer Commission (ACCC) said in its gas inquiry interim report released in December: ‘Transporting gas from Queensland to the southern states will be increasingly important to cover these potential supply gaps.’

If not addressed, a gas shortage could lead to blackouts, as gas-powered electricity generators may be unable to operate during peak demand periods and meet supply shortfalls.

This new deal aims to prevent such a scenario, ensuring a steady gas supply to the wholesale market, where power generators and energy distributors can purchase gas.

Lower wholesale prices should, in turn, result in lower energy bills for households and small businesses.

The agreement with Woodside and Esso marks the second round of exemptions under the government’s Mandatory Gas Market Code. This code, which came into force in July 2023, sets a price ceiling of $12 a gigajoule (GJ) to ensure certainty for the producers and wholesale users.

However, suppliers can exceed the cap, subject to ministerial approval, if they prioritise sending gas to Australia’s east coast market rather than abroad.

View attachment 39765

The agreement is for more than 260 petajoules of gas from the Bass Strait Project. Source: @exxonmobil_aus/X (Twitter)

Mr Bowen stated: ‘The Albanese government’s gas code has now delivered commitments for gas supply that’s equivalent to what is needed for powering east coast gas power stations for five years.’

Further exemptions under the code to secure additional supply are also being assessed by the federal government.

However, the move has not been without criticism.

Opposition Energy Spokesman Ted O'Brien argued that the announcement was a concession by the federal government that the code of conduct was failing to boost supply.

‘What has proven to be the case is you can’t get gas flowing in this country unless you work outside of Labor’s own framework,’ he pointed out.

‘The only way you can get gas flowing in this country is if companies are given the opportunity to work outside of the policy framework Labor itself has put in place,’ Mr O’Brien added.

Despite the criticism, Ms King emphasised the importance of gas as 'insurance' for the energy grid.

She explained: ‘Gas is essential to supporting the nation’s energy grid, and the reliable supply of gas is crucial to keeping energy prices down for households and businesses.’

‘Gas is also indispensable in processing critical minerals and technologies such as wind turbines and solar panels,’ Ms King continued.

The ministers said the additional supply would directly feed into southern demand centres and ensure sufficient domestic supply to keep the downward pressure on gas prices.

So, what does this mean for you? In the short term, you may not notice any immediate changes.

However, in the long run, this deal could help keep your energy bills stable and ensure a reliable gas supply for your home and business.

Key Takeaways

• The Albanese government has signed new gas supply contracts with Esso and Woodside to address potential gas shortages and drive down prices.
• The agreement is for more than 260 petajoules of gas from the Bass Strait Project, which will help prevent energy supply gaps forecast to begin in 2028.
• This deal is the second set of exemptions under the Mandatory Gas Market Code, which sets a price ceiling but allows for ministerial exemptions if supply is prioritised to the Australian market.
• Energy Minister Chris Bowen emphasised that the secured gas supply will help reduce energy prices and support the reliability of Australia's energy grid as the country moves towards renewable generation.

What are your thoughts on this new gas deal? Do you think it will help to keep energy prices stable? Share your thoughts in the comments below.

The government are totally wrong demonising coal and replacing it with "renewable" energy which has proven to vastly increase electricity bills. While gas is "environmentally" better than coal, no-one has ever proven that carbon dioxide is a "climate changer", that needs to be eliminated. Man caused carbon dioxide is just a very small fraction compared to naturally occurring carbon, why do the "experts" only want to eliminate it from power generation, vehicles and transport, agriculture etc and not worry about what is impossible to control, let alone eliminate.
The stupid government want us to all drive EV's, what a joke. They can't supply enough electricity to charge them all up each time, at a reasonable price, and if you live outside of the main cities and need to drive many miles for any reason, good luck...
Their push to "renewables" is resulting in losing thousands of acres of food producing country, and creating huge eye-sores with solar panels and wind turbines, both of which need replacing more frequently than either coal or gas fired generators. Not to mention the addes cost of extra transmission lines and towers to bring the power from those renewable generators to the users in the cities. Then there is the cost of disposing of them when they reach the end of their life.
In my opinion the only real replacement for coal or gas if they MUST be replaced is nuclear power. Modern reactors are safe, and don't use any more ground than the coal generator they are replacing.
The Collinsville coal generator has outlived its efficient life, and was closed down, leaving North Queensland without a source of power, with the closest being Gladstone, nearly a thousand kilometres away. The sensible thing is to rebuild it using the latest technology and using the existing coal, water and transmission facilties on that site.

 

[Graham12]

I think if we stop sending our gas overseas we a great way of preventing a gas shortage.

The overseas customers of the gas paid upfront for the tens of billions of infrastructure. Nobody in Australia wanted to stump up for it. That gives them some entitlement to buy the gas.

 

[Rexdog]

Governments and industries are now taking action to avoid higher energy costs for households and businesses.

In order to address the upcoming gas supply shortage, the Albanese government has signed a significant agreement with the largest producer of liquefied natural gas (LNG) on the east coast.

On Monday, January 22, Energy Minister Chris Bowen and Resources Minister Madeleine King announced new gas supply contracts of more than 260 petajoules—equivalent to 2½ years of gas-powered generation demand—up to 2033.

This gas will be sourced from the Bass Strait Project, operated by ExxonMobil’s local subsidiary, Esso, and part-owned by Woodside.

View attachment 39766

The government has signed a deal with ExxonMobil’s local subsidiary, Esso, and is part-owned by Woodside. Source: @exxonmobil_aus/X (Twitter)

The project taps into the gas fields in the Gippsland Basin off the southeast coast of Victoria.

This move comes in response to warnings from regulators that consumers in Australia’s southern states could face gas shortages from 2028, which could send skyrocketing energy bills.

The Australian Competition and Consumer Commission (ACCC) said in its gas inquiry interim report released in December: ‘Transporting gas from Queensland to the southern states will be increasingly important to cover these potential supply gaps.’

If not addressed, a gas shortage could lead to blackouts, as gas-powered electricity generators may be unable to operate during peak demand periods and meet supply shortfalls.

This new deal aims to prevent such a scenario, ensuring a steady gas supply to the wholesale market, where power generators and energy distributors can purchase gas.

Lower wholesale prices should, in turn, result in lower energy bills for households and small businesses.

The agreement with Woodside and Esso marks the second round of exemptions under the government’s Mandatory Gas Market Code. This code, which came into force in July 2023, sets a price ceiling of $12 a gigajoule (GJ) to ensure certainty for the producers and wholesale users.

However, suppliers can exceed the cap, subject to ministerial approval, if they prioritise sending gas to Australia’s east coast market rather than abroad.

View attachment 39765

The agreement is for more than 260 petajoules of gas from the Bass Strait Project. Source: @exxonmobil_aus/X (Twitter)

Mr Bowen stated: ‘The Albanese government’s gas code has now delivered commitments for gas supply that’s equivalent to what is needed for powering east coast gas power stations for five years.’

Further exemptions under the code to secure additional supply are also being assessed by the federal government.

However, the move has not been without criticism.

Opposition Energy Spokesman Ted O'Brien argued that the announcement was a concession by the federal government that the code of conduct was failing to boost supply.

‘What has proven to be the case is you can’t get gas flowing in this country unless you work outside of Labor’s own framework,’ he pointed out.

‘The only way you can get gas flowing in this country is if companies are given the opportunity to work outside of the policy framework Labor itself has put in place,’ Mr O’Brien added.

Despite the criticism, Ms King emphasised the importance of gas as 'insurance' for the energy grid.

She explained: ‘Gas is essential to supporting the nation’s energy grid, and the reliable supply of gas is crucial to keeping energy prices down for households and businesses.’

‘Gas is also indispensable in processing critical minerals and technologies such as wind turbines and solar panels,’ Ms King continued.

The ministers said the additional supply would directly feed into southern demand centres and ensure sufficient domestic supply to keep the downward pressure on gas prices.

So, what does this mean for you? In the short term, you may not notice any immediate changes.

However, in the long run, this deal could help keep your energy bills stable and ensure a reliable gas supply for your home and business.

Key Takeaways

• The Albanese government has signed new gas supply contracts with Esso and Woodside to address potential gas shortages and drive down prices.
• The agreement is for more than 260 petajoules of gas from the Bass Strait Project, which will help prevent energy supply gaps forecast to begin in 2028.
• This deal is the second set of exemptions under the Mandatory Gas Market Code, which sets a price ceiling but allows for ministerial exemptions if supply is prioritised to the Australian market.
• Energy Minister Chris Bowen emphasised that the secured gas supply will help reduce energy prices and support the reliability of Australia's energy grid as the country moves towards renewable generation.

What are your thoughts on this new gas deal? Do you think it will help to keep energy prices stable? Share your thoughts in the comments below.

Any govt. with any forethought would have put in a gas reservation policy years ago and the companies would have been happy to work within the rules instead of greedily contracting almost all for overseas sale.

 

[BellaJugar]

At the same time the ALP government in Victoria is trying to ban gas - love it!

They also want to try and ban it here in NSW too.