Greens say new gas won’t fix shortages as research links exports to soaring prices

The Greens have put the Albanese Government on notice, warning they’ll block any gas-shortage response that includes funnelling more public money into new gas fields.

The declaration comes as Labor prepares to release its strategy to avert a looming east-coast supply shortage projected from 2028.

“Government and industry lies are quickly unravelling. We don’t have a gas shortage, we have a gas export problem,” said Greens resources spokesperson Senator Steph Hodgins-May.

The Australian Energy Market Operator (AEMO) has warned that new investment is needed in central and east coast gas markets to address the predicted shortfalls in the southern states.

However, last month the Australian Competition and Consumer Commission (ACCC) reported “the outlook still depends on how much uncontracted gas LNG producers decide to export”.

“If Labor brings forward an option that incentivises new gas and hands more rewards to the corporations that have been ripping off Australians, they won’t have the support of the Greens.”

Research by the Australia Institute shows that gas exports have led to the tripling of wholesale east coast gas prices and doubling of electricity prices, since exports began in 2015.

“The kindest interpretation of the Australian and Queensland Governments’ role in allowing gas export corporations to brutally price-gouge Australians over the last decade is that they are weak and gullible. Arguably, they are complicit,” said Mark Ogge, Principal Adviser at The Australia Institute.

“Allowing new gas projects doesn’t solve the problem. We have tripled gas production in a decade, and we still have rolling shortages and high prices.

“New gas projects just mean more gas is exported and result in net-zero additional gas for Australians, unless we cut exports.”

“These companies have pillaged our environment and our resources,” said Senator Hodgins-May.

“Labor needs to cut ties with the gas lobby, tax exports, and commit to a fast and fair transition off gas – one that finally puts households ahead of gas corporations.”

The Greens are calling for a 25 per cent tax on all LNG exports – a measure proposed by the Australian Council of Trade Unions (ACTU).

“Gas giants have had a free ride for far too long. It’s time to finally make them pay their fair share,” said Greens economic justice and treasury spokesperson, Senator Nick McKim.

The Petroleum Resource Rent Tax (PRRT) was introduced in 1988 to ensure Australians benefit from country’s oil and gas reserves.

However, as the Australia Institute’s co-chief executive Richard Denniss points out, the Australian Government collects more money from student HECS debts than it does from the PRRT.

“In Norway, they tax the fossil fuel industry and they give university education to their kids for free. In Australia, we subsidise the fossil fuel industry and we charge our kids a fortune to go to university,” he said.

Analysis by The Australia Institute reveals that replacing the Petroleum Resource Rent Tax (PRRT) with a flat 25% tax on gas exports would raise more than $17 billion a year.

“The PRRT has become a massive joke at the expense of working Australians,” said Senator McKim.

“Australian nurses pay more tax than some of the biggest gas corporations in the country. That tells you everything about how broken the system is.

“It barely raises a cent while companies make eyewatering profits off a resource that belongs to all of us.”

There’s speculation the Albanese Government is “leaning towards a domestic gas reservation scheme” which would force gas producers to reserve some of their supply for the domestic market.

The Greens say they’re advocating for an export tax so the money raised can go towards offsetting the cost-of-living crisis gripping Australia.