20 March 2025
Labor’s reckless energy policy is driving Australia into a worsening gas crisis, with a new report confirming imminent supply shortfalls and surging costs for households and businesses.
The Australian Energy Market Operator’s (AEMO) 2025 Gas Statement of Opportunities, released today, warns that by 2028, domestic gas supply will not be sufficient to meet eastern market demand. This means blackouts, gas rationing, and continued skyrocketing prices across the east coast.
Shadow Minister for Climate Change and Energy, Ted O’Brien MP, said that under Labor, gas investment has collapsed, supply is shrinking, and Australians are paying more for less.
“This winter, families and businesses will be at the mercy of the weather. If it’s a cold one, bills will soar, and there’s no guarantee the gas will even be there to keep the lights on.”
“Labor created this crisis through reckless intervention and ideological hostility toward gas. Instead of fixing the problem, they’re scrambling to shift the blame”, Mr O’Brien said.
When in government, the Coalition delivered a stable and secure gas market. Investment flowed, supply was secure, and prices were kept in check. Under Chris Bowen, all of that has been thrown away. His anti-gas ideology has led to shortages, soaring prices, and a nation suffering from a full-blown energy crisis.
“The Coalition has a clear plan to restore investment in gas, bring down prices, and secure our energy future. If Labor doesn’t reverse course, Australians will be left shivering in the dark, paying the price for their incompetence.”
Shadow Minister for Resources, Senator Susan McDonald, said this release is yet another government report confirming the Albanese Labor government has failed to take any real action to secure gas supply or bring down prices.
“Over the last three years, we have seen Labor Governments increase fees for new gas exploration, forbid any Government investments in gas, funded activist lawfare against new gas projects, and forced a “price cap” that the ACCC confirmed has failed to bring down prices.
“Australians will only have Labor to blame for their higher energy bills and looming shortfalls.”
The importance of gas to the economy cannot be understated. Energy is the economy and under Labor we are quite literally running out. Not content with creating gas supply uncertainty in Western Australia through their delay on the North West Shelf, this report confirms that the Albanese Labor government continues to fail the whole nation on gas.
If Labor continues to ignore these warning signs and fails to act responsibly on gas policy, Australian manufacturers will face collapse, the energy system will falter, households will suffer and it will only fuel inflation further.
The report reveals that crippling gas supply gaps would occur even sooner if not for the Eraring coal fired power station extension – demonstrating the true hypocrisy of Labor’s failed renewables-only approach..
The Market Operator is now raising the alarm. Labor cannot simply continue to ignore gas, it must work to bring on more supply or risk rolling blackouts, the collapse of industry and soaring prices.
Labor seeks to prematurely shut down all of Australia’s coal fired power stations by 2038 yet it is running at less than half pace on its renewables rollout and has no tangible policy measures to pour more gas into the system.
In contrast, the Coalition has already announced a series of responsible and considered measures that have been widely endorsed by industry and have been proven to increase supply and lower prices.
Unlike Labor, a Coalition Government will:
- Unlock gas in key basins such as the Beetaloo Basin;
- Ensure gas is delivered to where it’s needed by reinstating the National Gas Infrastructure Plan;
- Speed up environmental approval processes and enhancing the national interest test through strengthened consideration of economic and social benefits of projects;
- Commit to an annual release of offshore acreage for exploration and development in the Northern Territory and Western Australia;
- Insert gas generation into the capacity investment scheme as originally advised by the Energy Security Board; and
- Defund the Environment Defenders Office which is halting vital projects through lawfare.
It’s time to get Australia back on track with a responsible energy plan that delivers cheap, clean and consistent power for families and businesses.
ENDS