“The shortage of the domestic market and the price shocks we have seen in recent weeks have nothing to do with the behavior of gas producers or exporters, who are doing everything possible to support the market right now.
“This is the result of more than a decade of failure of energy policy that has prevented the industry from developing more gas supply in a timely manner.”
On Wednesday, the Australian energy market operator activated for the first time its gas supply guarantee mechanism to ensure that there was adequate gas for electricity generation in Victoria, South Australia and Tasmania.
Under the voluntary mechanism, the three Queensland LNG exporters divert gas to the south for power generation. The three companies involving the domestic producers Origin Energy and Santos, as well as large global companies such as Shell, redirected the gas destined abroad to the domestic market.
Amid calls for more gas, the Greens demanded that the government subsidize households to abandon gas for electrical appliances, with subsidies of up to $ 25,000 and loans of up to $ 100,000 for households.
“Opening up new gas projects is a climate crime,” said Greens leader Adam Bandt.
But work is not hostile to gas as a sick fuel and sees the development of new gas fields as a legitimate solution in the medium term.
“If you can tick all the boxes from an environmental and commercial standpoint, that would be appropriate,” said Treasurer Jim Chalmers.
“Gas is an important part of our economy. But even here we are talking about the long-term development of possible gas fields. Therefore, even if we follow this path, this will not solve these problems that we face right now. “
In order to get more initial relief, Bowen will convene a meeting early next week with his state counterparts at which regulators will inform them.
At the same time, I was wondering if anything could be done.
“I make it clear that the Albanian Labor government will take all necessary measures to ensure the reliability and continued affordability of energy markets, especially on the east coast,” he said.
“But … the days of knee-jerk reactions, the days of ad hoc interventions, the days of implementing poorly thought-out policies are the days of the last nine years.
“We will do what is necessary and we will not shy away from difficult decisions. These decisions will be based on evidence, good politics, not partisan politics, fights, climate wars and cultural wars. “
The gas trigger will not work until January 1st
The government is under increasing pressure to push and activate the Turnbull government’s gas trigger, a mechanism that forces gas exporters to divert more products to the domestic market to ensure supply and, by extension, lower the price. .
Due to the consultative process involved in pulling the trigger, Mr. Bowen said even if the trigger was tight now, the extra gas would not flow until Jan. 1.
“It’s not a short-term response,” he said.
However, it is understood that Labor is aware that just the threat of pulling the trigger could be enough to drive the action of the gas giants, which the Coalition already supports.
Mr Bowen struggled to blame the previous government for the situation.
“The nine years of denial and backwardness of the old government, its 23 energy policies, its changing policy approaches have left Australia ill-prepared and our energy markets ill-prepared for the challenges we face today in relation to gas and energy supply, “he said. dit.
“The previous government did not do the necessary work to increase renewables or storage. If we had more storage and renewable energy and better transmission, we would be in a much better position to meet today’s challenges. “
It was the previous Labor government responsible for granting export licenses for Queensland gas fields without any requirement for an East Coast national gas reserve.
Five years ago, as a shadow treasurer, Mr. Bowen advocated the introduction of this reserve that would apply to all new and expanded gas fields.
He said on Thursday that re-igniting this proposal, which was examined by the old government, was a living option.
“The government will take action based on expert advice whenever we deem it appropriate,” he said.
Nationals MP Barnaby Joyce, who was ousted as leader on Monday, told the government to stop distorting and press the trigger.
Mr Bowen said the final decision would be up to Mrs King.
“If the government and Minister King decide to implement it, it will be done after full consideration and advice. Minister King is talking to gas companies today about what supply they can put online.”