Natural gas has an important role in the global effort to decarbonise. On an international scale, it facilitates the shift away from coal, particularly in fast-growing developing economies with increasing electricity demands. Domestically, in cases where renewables face constraints in rapid expansion, natural gas steps in to bridge the gap.

Data recently released by the International Energy Agency (IEA) projects an increase in global gas consumption due to its flexibility in navigating transitioning energy systems. This sentiment is echoed closer to home, with Australia’s energy authority, the Australian Energy Market Operator (AEMO), confirming that natural gas is indispensable for Australia’s renewable energy aspirations. Both the Australian Competition and Consumer Commission (ACCC) and AEMO concur that additional supply is required to meet the nation’s projected domestic gas demand.

The accelerated pace of the energy transition should be applauded, but it also demands careful planning to ensure energy security and reliability. While renewable energy sources are inherently intermittent, firming generation capacity, such as gas power peaking, is essential to maintain grid stability and support renewable expansion. In Queensland, approximately 15 GW of firming capacity must be installed in order to guarantee consistent and affordable energy supply during
renewables shortfalls.

Queensland has established itself as a global CSG to LNG powerhouse. However, unlike conventional gas resources, CSG development requires ongoing investment to sustain production levels through the management of existing gas field infrastructure and the development of new wells.

To foster and maintain investor confidence, policy settings that support the gas industry are imperative. Recent government interventions and increased red tape have adversely affected the sector. Given the central role of gas in both domestic and global energy systems, maintaining investor trust is critical in order to support decarbonisation and access to reliable energy.

Above all, the energy transition must ensure long-term security and stability. Queensland’s role in contributing to energy security and emissions reductions extends beyond its borders. The IEA states that import dependency for natural gas in Asia is projected to rise significantly from 27% in 2022 to 45% by 2050. With every exported LNG cargo equating to ~$4.5 million in royalties for Queensland, energy security is intrinsically linked to financial viability, making it a cornerstone of Queensland’s sustainable energy future.

The energy transition requires collective effort to reshape the energy landscape for a sustainable and prosperous future. Queensland can play a pivotal role in this global transition by addressing opportunities and challenges through realistic, evidence-based, and collaborative decision-making. By doing so, it can support a sustainable energy future not only within its borders but also on the broader global stage.