The economic contribution of the industry extends beyond direct payments to governments. The gas industry is expected to spend $41 billion with Australian businesses across the same period. Additionally, the gas industry has invested more than $400 billion in recent decades to find and develop Australia’s natural gas resources.

The gas sector is also a major employer, with around 80,000 people directly or indirectly employed along the natural gas supply chain. It also supports tens of thousands of jobs in sectors such as mining and manufacturing.

2. Natural gas stabilises the energy grid

Natural gas provides a reliable and flexible source of electricity generation to back up new renewable energy sources in the power system.

For instance, natural gas power plants can be switched on and off quickly in response to changes in demand, or when renewable sources are unavailable, providing a critical safety net for the supply of electricity.

Indeed, federal government research shows the electricity grid would be unable to cope with peak electricity demand without gas.

“Natural gas has never been more important as we phase out coal power generation and transition to more renewables,” says McCulloch.

“Reliable gas supply is key to unlocking new manufacturing opportunities aligned with net zero,” she says.

This includes mining and processing critical minerals for batteries and renewable technologies.

3. Gas is vital to Australia’s clean energy transition

Australia’s oil and gas industry is committed to net zero emissions across the economy by 2050. Consequently, the gas sector is investing in technologies and measures needed to achieve national and global climate targets.

For instance, the gas industry is leading the development of carbon capture and storage technologies in Australia. According to the International Energy Agency, without carbon capture and storage, reaching net zero will be virtually impossible.

“Carbon capture and storage is one of few technologies available for deep emissions reductions in heavy industry, including cement production. It provides a technology-driven solution to remove carbon from the atmosphere,” says McCulloch.

Australia has the expertise, infrastructure and natural geology to be a regional decarbonisation powerhouse in carbon capture and storage.

The Gorgon liquid natural gas facility in Western Australia is the world’s largest carbon dioxide storage project. It has stored more than 9.5 million tonnes of carbon dioxide since 2019. A second major carbon dioxide storage project at Moomba in South Australia is expected to open later this year.

“Natural gas combined with carbon capture and storage is the most affordable and mature pathway to produce low-carbon hydrogen. It’s an opportunity to use our abundant natural gas resources to support net zero goals, while helping Australia to gain a foothold in emerging global hydrogen markets,” says McCulloch.

Natural gas will remain a pivotal component in Australia’s energy transition, offering a bridge to a cleaner energy future, while ensuring stability, affordability and security for the nation’s energy needs.

This article was produced in partnership with Australian Natural Gas on behalf of Australian Energy Producers Ltd. For more information on the role of natural gas in Australia, go to keepingthecountryrunning.com.au.