Future Gas Strategy
13 November 2023
GAS Energy Australia hopes that, from this submission, there is greater understanding leading to recognition that LPG is different. LPG has a unique value proposition in the gas space, with a vital role to play as a renewable energy source that can quickly and relatively easily fully decarbonise.
LPG presents a solution to the growing problem of coal-fired power coming out of production, at the same time as renewable sources like solar, wind, etc., struggle to meet expected targets.
While LPG is a relatively small part of the Australian gas landscape, its footprint across the nation is significant – encompassing over 2,026,450 homes, 130,000 businesses, millions of outdoor recreational users, as well as a major exporter – exporting 70% of current production.
LPG's clear and commercially-viable scope to provide flexible, reliable, affordable and secure energy for household, commercial, industrial (including agriculture) and recreational uses, while being net zero emitting and moving to actual zero emitting, is an opportunity.
It can also be a growing part of the national economy. As reported in ACIL Allen's Economic Contribution of the Australian Gas Economy 2021-22, last year LPG drove over $5 billion in domestic economic activity (up from $3.6 billion the previous year), while supporting 20,516 Australian jobs (up from 16,154 a year earlier).
Based on current domestic demand, replacing all conventional LPG with synthetic actual zero rLPG by 2050 would reduce CO2-e emissions by up to 1.94 million tonnes every year. It would take massive pressure of electricity supply and provide much-needed flexibility in meeting the future energy task.
This can be achieved while continuing to deliver families, businesses and industry the gas they know, trust, can afford and rely on. It also represents an opportunity via exports to assist our trading partners to decarbonise.
The LPG sector has undertaken to complete this transition without any call on government funding. However, the need for governments to recognise this transition is vital to giving the industry confidence to invest in these renewable technologies.
[ENDS]
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