Matthew Canavan (Queensland, Liberal National Party, Minister for Resources and Northern Australia) Share this | Hansard source

I thank Senator Fawcett for his very important question. He is right to point out that early last year the country did face a crisis in gas supplies, a crisis that was putting at risk thousands of jobs, including in Senator Fawcett's home state of South Australia. That state has a proud history of manufacturing and it requires accessible and affordable supplies of gas to survive. The price of gas in Adelaide was $10 a gigajoule, a high for that region. Some businesses were receiving contract offers of $15 and $16—even $20 a gigajoule was offered in one instance.

As soon as the government received a report early last year from AEMO, the Australian Energy Market Operator, identifying a shortfall of gas potentially emerging this year and next, we convened a meeting the next week with the gas industry. The next month after that report we imposed a new framework for gas export controls to make sure that there was sufficient gas in Australia for Australian businesses and households. Later that year, in October, we came to an agreement with the gas industry for them to return gas to the domestic market such that export controls were not needed to be triggered. That agreement has led to 70 petajoules more coming back to the domestic market than previously from the gas industry. That has helped alleviate the gas supply situation and has helped bring prices down.

Last week the Australian Energy Market Operator updated their gas outlook report. Its great news that they now don't report a shortfall for next year. In fact, they report that we'll have 58 petajoules more gas than will be demanded next year, which will avoid the crisis situation we have had. In Adelaide, in Senator Fawcett's home state, the price of gas in the last three months has averaged $7.92 a gigajoule, down from the $10 level of a few years ago. This is good news for South Australian businesses and good news for businesses right across the country. The government is delivering better energy policy for our country to support businesses and jobs.