Environment groups slam Albanese Government’s proposal to prop up the Australian gas cartel and open up new gas fields

The Albanese Government's proposal to bulk purchase gas under the East Coast gas market review would reward the gas cartel's bad behaviour by propping up their coffers with taxpayer funds and incentivise opening new gas fields at the expense of water, climate and communities, Australia's leading State the Territory Conservation Councils said today in a joint statement.

The federal government is considering a plan to bulk buy gas from producers, and then re-sell that gas to end users at a lower price. This would not only amount to a massive new fossil fuel subsidy, but would also incentivise the opening up of new gas developments like fracking in the Northern Territory and coal seam gas in NSW and Queensland.

Queensland Conservation Council Acting Director, Anthony Gough, said

Santos' behaviour is a primary cause of the east coast gas crisis, siphoning off domestic gas so they can export it out of Gladstone for years. This move effectively rewards the gas cartel for its bad behaviour, and puts communities and nature at risk by propping up this destructive industry for decades to come.

Environment Centre NT Executive Director Kirsty Howey said

This plan would be nothing more than a sweetheart subsidy for Santos, that would incentivise new climate-wrecking gas fields like fracking in the Beetaloo Basin, which could generate 1.2 billion tonnes of carbon pollution.

Nature Conservation Council of NSW CEO, Jacqui Mumford, said

The last thing our communities want or need is our government funnelling massive fossil fuel subsidies to companies intent on destroying our climate and water. Companies like Santos shouldn’t be opening up new gas fields like Narrabri in a climate crisis, period, and our government should not be helping them.

Conservation Council of SA CEO, Kirsty Bevan, said

The Albanese Government should be dumping Santos, not propping it up with massive new subsidies that will set us on a path to climate destruction and make disasters like South Australia’s algal bloom even more likely.

Conservation Council WA Executive Director, Matt Roberts, said

It is disappointing, but not surprising, that we have our politicians bending over backwards to subsidise and accommodate the gas industry while trying to sell it to us as a win. We should be stopping new gas fields, not funding them with taxpayer money.

Conservation Council of the ACT Executive Director, Simon Copland, said

Cities like Canberra are quickly transitioning away from gas to cleaner and cheaper energy options. It is ridiculous that the Government would use our tax dollars to prop up this dirty industry when we have plentiful clean alternatives available to us.

There is no gas shortage in Australia. We have too much gas. The problem is that the vast majority of it is exported so that gas companies can rake in super profits while paying no royalties. The Albanese Government’s plan does nothing to address this problem and may make it worse.

Environment Victoria CEO, Jono la Nauze, said

This plan flies in the face of what Victorians want and need. We’re at a pivotal point in the transition to clean, affordable energy and every dollar should be going to repower households and businesses with renewable energy - not propping up fossil fuel giants like Santos.

Subsidising new gas fields doesn’t just lock us into more climate pollution, it delays the real solutions that slash bills and create cleaner, more resilient communities. We need the Albanese Government to step up and lead on a rapid transition away from fossil gas, not double down on outdated, climate-wrecking and costly fuel.

Environment Tasmania CEO, James Overington, said

Gas exports have caused Australian electricity prices to double, driving up costs for everyday Australians and businesses, as well as driving dangerous climate change. This is an irresponsible move by the Albanese Government.

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