Gas Acceleration Program

The accessibility and price of gas have been identified as key risks for Australian business competitiveness and cost of living pressures. Predicted supply shortfalls by the end of the decade, combined with other factors, including linking to international export markets, ageing infrastructure, state and territory bans, are resulting in a higher new ‘normal’ gas price and constrained availability.

AEMO’s Gas Statement of Opportunities 2017 report forecasts domestic gas shortfalls of 10PJ – 54PJ to 2024, in the eastern gas market, unless additional supplies are made available. If this supply shortage eventuates and is not addressed, gas prices are likely to increase significantly. Higher gas prices means higher energy costs for households. Higher energy and input costs for industry, particularly trade exposed companies, could lead to the potential movement of jobs offshore. Higher prices also affect the ability for gas fired generation to offer sustainable, reliable electricity generation options during the transition to lower emissions.

In response, the $26 million Gas Acceleration Program (GAP) is being established to accelerate the development of known significant gas resources. GAP will support projects with the greatest likelihood of securing new and significant gas supplies for the eastern gas market from onshore gas fields.

GAP will assists states stimulate investment in a diverse range of projects from competing gas producers. Grant guidelines are currently being developed and will favour projects that have prospects to deliver gas to east coast gas consumers within 36 months (year end 2020).

For more information about GAP, please email GAP@industry.gov.au

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