Australian Energy Producers (AEP) has unveiled its Federal Budget submission for the 2024-25 fiscal year, urging the Federal Government to allocate funds for new gas supply to mitigate anticipated gas shortages and drive down gas prices.

The submission underscores the necessity for increased investment in gas exploration to avert projected shortages, apply downward pressure on prices, and safeguard the economic and emissions reduction advantages of Australia's abundant natural gas resources. In the wake of over a year marked by policy fluctuations, governmental interventions, and delays in project approvals, the AEP asserts the need for a recalibration of the policy and investment landscape concerning natural gas to secure the nation's energy future.

Highlighting the absence of new acreage releases for petroleum exploration since August 2022, AEP calls for the resumption of the release of new acreages. It emphasizes that price controls, instituted in the east coast gas market in 2023, should not evolve into a permanent fixture. The AEP urges the government to articulate a plan outlining the return to market signals and the incentivization of new supply, especially preceding the scheduled 2025 review of the Code of Conduct.

Furthermore, the government is implored to conduct a review of the energy requirements for critical minerals processing, ensuring a consistent gas supply to power the manufacturing of minerals crucial for achieving net-zero emissions.

The 2024-25 Federal Budget submission accentuates the pivotal and enduring role that natural gas is expected to play in Australia's transition to a net-zero energy landscape. It also underscores the burgeoning opportunities for LNG exports to facilitate regional emissions reductions. The urgency for new gas supply from coast to coast is emphasized to ensure the reliability and affordability of energy for both households and businesses.

To expedite the realization of these objectives, the AEP advocates for expeditious measures, whether through streamlining environmental approvals or rectifying deficiencies in the offshore regulatory system. Urgent action is deemed essential to secure the economic, energy security, and emissions reduction benefits inherent in natural gas.

The submission contends that the overdue release of new offshore petroleum exploration acreage necessitates prompt resumption, ensuring that the annual process aligns with domestic and regional commitments. A noteworthy proposal within the submission is the establishment of an Australian LNG Producer-Consumer Taskforce, aimed at fortifying regional relationships and positioning Australia to capitalize on the potential ten-fold growth in Asian LNG demand.

Additionally, the submission calls for Australia to assume a pivotal role as a regional hub for carbon capture, utilization, and storage (CCUS). This involves the development of a national roadmap and the establishment of Net Zero Zones to expedite emissions reductions. Carbon capture is underscored as a vital component of the net-zero pathway, contributing to emission reductions across various industries, unlocking the potential of low carbon hydrogen, and supporting carbon removal initiatives.

In summary, AEP's Federal Budget submission outlines a comprehensive strategy, encompassing increased gas exploration funding, the resumption of acreage releases, the avoidance of permanent price controls, and the establishment of task forces and hubs to fortify regional relationships and advance carbon capture initiatives. The submission represents a strategic blueprint to address the challenges and opportunities in Australia's energy landscape, paving the way for a sustainable and resilient future.