Simon Birmingham (SA, Liberal Party, Minister for Education and Training) Share this | Hansard source

I thank Senator Duniam for his question and for his particular interest in relation to the importance of gas and gas supply in the Australian energy market, which is of course so critical to the operation of many manufacturing businesses as well as to households and businesses across Australia insofar as they impact on electricity prices.

Indeed, wholesale gas prices make up an estimated 15 to 30 per cent of total residential gas bills and household gas bills. These increase with increases in those prices flowing through the market—some five per cent per $2 per gigajoule increase in New South Wales, for example, according to the ACCC. That's why it's important, and that's why the Turnbull government has taken action to ensure that the supply-and-demand imbalance that appeared to be emerging in the Australian gas market is being rectified.

The Prime Minister has secured agreement with the heads of the three big east coast gas companies to ensure that there is sufficient gas supply to meet the projected shortfall in the Australian market and to ensure that there is sufficient gas supply to guarantee that in the future Australian consumers, be they businesses or households, have the gas to meet their needs. Indeed, the commitment from gas companies will see an estimated 54 to 108 additional petajoules of gas come into the Australian gas market. This is incredibly significant because, if you look at gas usage in a regional town, such as Warrnambool or Wollongong, or at a major industrial manufacturer, they would use just one petajoule per annum. The action we are taking is guaranteeing many times that—between some 54 and 108 additional petajoules entering the market.