Media release: ACCC urges governments to clear barriers to new gas projects and investment

The Australian Competition and Consumer Commission (ACCC) has urged Commonwealth and state governments to "reduce regulatory barriers" to investment in new gas supply and explicitly recognise the critical long-term role of gas in Australia's energy transition.

The ACCC's latest quarterly report on the east coast gas market confirms the gas industry continues to provide reliable and affordable energy for Australian homes and businesses, estimating a surplus across the east coast over 2025 and 2026. However, it warns Victoria and NSW face peak-period shortfalls this winter and structural shortfalls across the east coast by 2027 if new gas projects aren't developed.

Australian Energy Producers Chief Executive Samantha McCulloch said the ACCC report underscores the urgency for governments to fast-track new gas projects and provide policy certainty to avoid shortfalls and higher energy prices across eastern Australia.

"The ACCC has again urged governments to address the regulatory approval delays, legal hurdles and 'an uncertain policy environment' delaying new gas projects and deterring investment," Ms McCulloch said.

"At a time when Australians are facing cost-of-living pressures, governments must do everything they can to remove these barriers and ensure reliable and affordable energy for Australian homes and businesses."

Ms McCulloch welcomed the ACCC's recommendation that 'the role of gas should be explicit in government planning for the energy transition' to incentivise and coordinate investment in new gas supply and infrastructure.

The report noted that LNG imports are likely to be required to supplement gas supply in Victoria and NSW, but cautioned imports could increase gas prices and 'continued domestic gas production will be important to limit risks to energy security on the east coast and market stability associated with reliance on international LNG markets'.

Ms McCulloch said Victoria and NSW should focus on developing their own abundant gas reserves instead of relying on imports.

"The priority should be on providing reliable and affordable gas sourced close to where it is needed," she said.

"Australian gas producers are committed to providing reliable and affordable energy for Australian homes and businesses, but as the ACCC has confirmed governments must act to restore investment confidence and ensure timely approvals for new gas supply."

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