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More gas secured for Australia’s east coast market

The federal government has secured enough supply to power east coast gas generators for six years.

The federal government has secured enough supply to power east coast gas generators for six years. Photo: AAP

More gas pumping into the east coast market under a new supply deal with Walloons will help ease power prices, the federal energy minister says.

An additional 40 petajoules would be available for the domestic market through to 2027 under an enforceable supply commitment, Chris Bowen said.

It builds on commitments made by Esso, Woodside, Senex and APLNG, bringing the total amount of gas to more than 600 petajoules.

“The Albanese government’s gas code has now secured the equivalent of enough gas to power east coast gas generators for six years,” Bowen said in a statement on Thursday.

Gas would supplement the transition to renewable energy, which would further ease power prices in the long run, he said.

Resources Minister Madeleine King also says gas supply is crucial.

“The shift to clean, renewable energy is well underway but in the meantime we need gas to ensure our energy system remains stable, reliable and affordable,” King said.

“The enforceable supply commitments will ensure Australian gas is available for Australian users at reasonable prices and on reasonable terms and give producers the certainty they need to invest in supply.”

The use of additional gas has been criticised by the Greens and climate groups for its detrimental effects on global warming.

The opposition has backed extra gas being pumped into the market to lower energy prices.

– AAP

Topics: Gas
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