Tony Zappia (Makin, Australian Labor Party) Share this | Link to this | Hansard source

Over recent times there has been much discussion about soaring gas prices, rising energy costs and, now, Australia heading for a looming gas shortage. The situation defies logic. Australia has plenty of gas and is the world's largest exporter of LNG. In 2020-21, Australia produced 5,730 petajoules of gas. Of that, 1136 petajoules were consumed locally, with 390 petajoules, or just seven per cent of total production, used for domestic electricity generation.

Cost of living is the critical issue facing most Australian people right now. High energy prices directly cause cost-of-living increases and push up inflation. Inflated gas prices have been a key factor in rising energy costs. Right now throughout the world, gas producers are profiteering from a lucrative gas market. According to one report, here in Australia in 2021-22, LNG producers made up to $40 billion of windfall profits while paying next to nothing in tax. Not surprisingly, gas producers are keen to get hold of more gas, which they can then sell very profitably on the world market.

Claims that Australia is facing a gas shortage and that we need more gas supplied into the market if we want prices to come down are nothing more than part of a manipulative campaign by the gas industry, which is trying to force governments into approving more gas fields. It is a claim often perpetuated by some of those members opposite.

Australian gas in an Australian resource. No other country would allow its people to be exploited by the gas producers in the way that is happening here in Australia. Western Australia got it right when they introduced a gas reservation policy which included price controls. We are seeing the effects of that right now, where their gas pricing is very different to that on the eastern side of Australia. Members opposite, instead of protecting the interests of a handful of very profitable gas companies, should stand up for the tens of thousands of other businesses that they claim to represent and the Australian people who are being gouged by Australia's gas cartel. They should stop giving credibility to the dishonest claims of the gas sector.