On Monday the Prime Minister alerted Australians to the real possibility of an energy crisis, as the predicted gas shortage had been revised upwards; three times worse than previously thought. “It’s estimated there will be a shortfall … of around 110 petajoules of gas?—?more than three times the figure we were advised earlier in the year,” said the Prime Minister.
Sighting two reports the Government had recently received, one from the Australian Energy Market Operator (AEMO) and one from the Australian Competition and Consumer Commission (ACCC), showing shortages in gas for the east coast domestic market over the next two years, the Prime Minister said the shortages “will be considerably higher than that estimated six months ago”.
The Prime Minister, while quick to sheet home blame to the Opposition, saying this predicament is “one of the great Labor failures in energy policy”, was also pragmatic in his assessment of work already undertaken by his Government to improve gas supply, saying “following our announcement earlier in the year of foreshadowing export controls, we know that there has already been more gas brought into the market by the exporters. But it has clearly not been sufficient to date.”
By Wednesday, the Prime Minister, alongside the Minister for the Environment and Energy, the Hon Josh Frydenberg MP and the Deputy Prime Minister, the Hon Barnaby Joyce MP, had met with the heads of Origin, Santos and Shell, and received guarantees that an offer 107 petajoules of the expected gas shortfall would be made available for east coast consumers and small businesses. Of that, 54 petajoules would be made available in 2018 and an additional 53 petajoules if required (under AEMO worse case scenario).
The Acting Opposition Leader, the Hon Tanya Plibersek MP, in charge while the Hon Bill Shorten MP tours South Korea and Japan with the Shadow Minister for Foreign Affairs, Senator the Hon Penny Wong, urged the Government to enact emergency powers to further restrict gas exports immediately. Ms Plibersek said the Prime Minister should insist on more Australian gas staying in Australia. “We need to pull the gas trigger (now)… Malcolm Turnbull has the power to act today to avert blackouts this summer. He should do so,” said Ms Plibersek.
