South Australia Pledges $19mn for Gas Extraction

Australian state of South Australia will commit A$24mn (US$18.8mn) towards a program to incentivise companies to extract more gas and supply it to the local market with an aim to increase energy market competition, drive down costs for businesses and consumers and reduce carbon emissions.

“The small number of energy suppliers in South Australia have too much power – if we increase competition, we will put the power back into the hands of consumers. Increasing competition in the energy market is the best way to drive down power prices for South Australian households and businesses,” premier Jay Weatherill said on September 8.

Mineral resources and energy minister Tom Koutsantonis said there is a lack of available gas in the national market, a situation made worse by the decision in Victoria to ban onshore conventional and unconventional gas exploration and development. “Gas is an important transitional form of energy generation that works in tandem with renewables, providing base-load power to stabilise the system as more renewables come online.”

Premier Jay Weatherill (Credit: Premier of South Australia)

Victoria’s approach towards the natural gas industry has been in complete contrast to that of South Australia's. In a statement released August 30, the Victoria’s Labor government said the permanent legislative ban, a first for Australia, will be introduced to parliament later this year. 

Shardul Sharma

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