Nicolette Boele is right: we do not have a gas supply problem

The claim: “We do not have a gas supply problem. We have a gas export problem.” 

That’s from Independent member for Bradfield, Nicolette Boele, who moved a private member’s motion in the House of Representatives on Monday, calling on the Government to restrict gas exports to solve shortages. 

Australia does not have a gas supply problem 

Australia is the world’s second-largest exporter of gas, but because of the way we run our energy market, local prices are linked to the higher foreign prices. Local prices have skyrocketed since the Australian government approved the exporting of gas from Queensland, commencing in January 2015. 

According to data from the Australian Energy Market Operator (AEMO), since gas exports from Queensland started, domestic gas prices have tripled, and electricity prices have doubled.  

Gas and electricity prices remain at near-record highs. Electricity prices follow gas prices because gas-fired electricity generation is often the most expensive form of generation in Australia’s National Electricity Market (NEM). The Government’s design of the NEM means the most expensive form of electricity sets the wholesale price of electricity for all users. 

Data from the Department of Climate Change, Energy, the Environment and Water in Australia shows that 83% of all gas extracted is used for export. Over the last five years, gas exports have been enough to supply domestic users for 22 years. 

As Boele told Parliament,  

“If we fail to act [on gas exports], manufacturers will face higher costs, householders will face even higher energy bills, and our electricity system will face greater risk during peak demand. If we succeed, we’llhave a market that works—one that delivers affordable energy, supports jobs and aligns with our climate goals.” 

Her call aligns with those made by The Australia Institute, Weld Australia, and the ACTU  for gas companies to pay their fair share of tax on their exports. 

The verdict: True