Future Gas Strategy

The strategy at a glance

The Future Gas Strategy is our plan for gas production and consumption in Australia. The strategy explains the principles the Australian Government will use to guide policymaking about gas to support the transition to net zero.

The strategy is an evidence-based framework built around 6 principles. It draws on the Future Gas Strategy Analytical Report, which provides in-depth analysis of relevant data about gas supply, consumption and emissions. The strategy is also shaped by extensive public consultation, which revealed the barriers and opportunities around gas supply and consumption for Australian households and businesses and our international trade partners.

The role of gas will change as we reach net zero in Australia by 2050. Even in net zero scenarios, Australia and the world will need gas at lower levels through to 2050 and beyond. Australian gas will play an important role in an orderly global and domestic energy transformation. However, to meet our legislated climate goals, we must find alternatives to gas and gas-related emissions must decline.

Throughout the strategy, we use several scenarios to help shape our understanding of the future of Australian gas. These scenarios are not predictions. They let us compare potential versions of the future based on different assumptions. This helps decision makers understand potential trade‑offs and make the best choices possible.

Read more information about these scenarios in Appendix A.

Guiding principles for Australia’s gas

The strategy adopts 6 principles that will guide policy actions to achieve the strategy’s aims. 

1. Australia is committed to supporting global emissions reductions to reduce the impacts of climate change and will reach net zero emissions by 2050. Gas production and use must be optimised through the transition and residual use must be abated or offset to achieve this economy-wide commitment.
2. Gas must remain affordable for Australian users throughout the transition to net zero. A future made in Australia, our competitive advantage in abundant resources, and our standard of living requires reliable, affordable and clean energy. Continued gas development and more flexible gas infrastructure is needed to increase the resilience of Australia’s energy system and keep costs down as we transition. Government decisions on gas development rights should prioritise timely development and discourage repeated delays to ensure supply and affordability.
3. New sources of gas supply are needed to meet demand during the economy-wide transition. Government policies to enable natural gas exploration and development should focus on optimising existing discoveries and infrastructure in producing basins. This includes applying technology-neutral approaches to exploration data acquisition (to minimise seismic surveying where possible), prioritise energy security, and align with our net zero emissions targets. Robust environmental approval processes are key to the social license of the gas industry.
4. Reliable gas supply will gradually and inevitably support a shift towards higher-value and non-substitutable gas uses. Households will continue to have a choice over how their energy needs are met.
5. Gas and electricity markets must adapt to remain fit for purpose throughout the energy transformation.
6. Australia is, and will remain, a reliable trading partner for energy, including Liquefied Natural Gas (LNG) and low emission gases. Australia’s ambition to become a renewable energy superpower will involve developing new low emissions energy exports to support the energy security and decarbonisation efforts of our trade partners.