The International Energy Agency (IEA) has called on Australia to deliver national road maps for gas and carbon capture technology to achieve net zero as part of its strengthened climate strategy.
The Australian Petroleum Production & Exploration Association (APPEA) said the IEA’s Australia 2023 Energy Policy Review recognised the crucial role gas supply played in national and regional energy security.
APPEA Chief Executive Samantha McCulloch said: 'The industry supports calls for national plans for gas and carbon capture, as important planning tools for net zero.
'The IEA makes it clear that Australia’s gas production must meet domestic and export needs, with the global LNG market increasingly calling on Australia to help ease the supply pressures during the global energy crisis.'
However, the IEA noted considerable investment uncertainty for natural gas production and related infrastructure, which they highlight reduces the private sector’s willingness to maintain existing infrastructure assets and invest in new capacity.
Ms McCulloch said: 'The IEA are clear that the temporary price cap should not become permanent because investment may be put at risk – effectively rejecting the notion of ongoing price controls proposed in the Mandatory Code of Conduct.
'The market should set the price. Interventions in markets only undermine investment confidence and lead to less new supply, putting upward pressure on prices.
'The IEA further highlight that robust policies are needed to improve the availability of natural gas supply in Australia.
'The report also recognises Australia’s suitability for large-scale deployment of carbon capture to enable domestic abatement and regional emissions reductions, as well supporting export opportunities for low-carbon hydrogen.
'The global carbon capture race has started and Australia can’t miss this opportunity when other countries are already making major moves to progress the technology.'
Source: APPEA
