PERTH (miningweekly.com) – The federal government will invest an additional A$50.3-million to accelerate priority gas infrastructure projects that will protect Australia from potential energy shortages, keep pressure on prices and create jobs in regional Australia as part of plans for a stronger future. 

The additional funding, under the Future Gas Infrastructure Investment Framework, will be invested in seven priority projects, as well as key carbon capture and storage (CCS) infrastructure. 

Minister for Industry, Energy and Emissions Reduction Angus Taylor said the government was working with industry to accelerate priority projects to ensure Australia does not experience the devastating impacts of a gas supply shortfall, as seen recently in Europe.

“Our National Gas Infrastructure Plan (NGIP), released last November, highlighted the critical need for more gas storage to provide greater supply flexibility during winter peaks, along with the need to get more northern gas to the south.

“That’s why we are investing in seven priority projects as part of our gas-fired recovery, to make sure Australia has adequate supply and storage to avoid expected shortfalls in production in southern Australia that could emerge by 2024.

“Our investment will help keep the lights on and homes heated in southern Australia, and support our industries and businesses to keep operating.”

The seven infrastructure projects that support NGIP priority actions selected for early works support include the Southwest pipeline expansion and the Heytesbury underground gas storage project, in Victoria, the Project Range project and the Surat Hub and Gas Infrastructure Hub projects, in Queensland, the East Coast Gas Grid expansion Stage 2, and a feasibility study into the most efficient infrastructure to deliver natural gas from the Beetaloo sub-basin to the east coast gas market.  

The investment also includes funding for feasibility studies and options for carbon dioxide- (CO₂-) carrying pipelines from major gas and industrial hubs to prospective sites for CCS.

Taylor said that the government will now engage with the project proponents to finalise grant agreements.

CCS is one of the priority technologies under the Low Emissions Technology Statement 2021. Supporting the development of CO₂ infrastructure alongside major gas pipelines will enable low emissions natural gas production as well as open up opportunities for low emissions manufacturing and low-cost clean hydrogen production from natural gas.

“The government has a clear stance on both natural gas and CCS - we will strongly back these sectors which are critical to both affordable and reliable energy for all Australians, as well as emissions reduction," Taylor said. 

Funding details for the gas package will be included in the 2022-23 Budget.