APPEA CEO Andrew McConville: How gas will play its part in growth of renewable energy

In running Australia’s peak oil and gas industry association, some people might be surprised to learn that I believe growth in renewable electricity generation use is good news.

Recent years have seen an increase in renewable electricity generation and it is forecast to continue to grow, with plenty of media commentary lately about this trend.

We, as a positive, future-focused industry, are at the forefront of what is happening in the energy sector.

If the world is to get to net zero greenhouse gas emissions by 2050, we are going to need all shoulders to the wheel.

All energy sources will have to find ways to play their part in coming years – and renewables and natural gas will be right there working together to power the world.

Growth in renewable electricity – like the extraordinary uptake of solar panels on Australian homes – is welcome. As we’ve seen in South Australia, increased renewables is made possible by supporting gas, and that’s good news for meeting demand with a cleaner energy combination.

There is a need for a range of sources to complement each other in the future energy mix. After all, who is going to power our planet when the wind doesn’t blow or the sun doesn’t shine?

The natural gas industry will play a part as a stable and reliable energy source into the future for decades to come. Indeed, it is the fastest way for Australia to meet its climate change targets as a cleaner form of energy.

As the International Energy Agency points out, the applications of natural gas in a cleaner energy future are incredibly broad – from replacing coal in our neighbouring countries, to being a feedstock for hydrogen, to stabilising renewables.

The oil and gas industry is committed to net zero greenhouse gas emissions by 2050, a core principle of our sector as we embrace a cleaner energy future.

Already our members have shown themselves to be willing partners in a decarbonised future. They have invested billions in new technology initiatives such as carbon capture and storage and using gas in hydrogen production. These positive actions encompass the entire oil and gas exploration and production life cycle.

But it is not just in generating electricity that natural gas has a critical role to play in both our environmental and economic aims.

The role of natural gas as a versatile and diverse fuel source that is used in a broad range of applications across the entire economy means that natural gas will remain a key part of Australia’s and the region’s energy mix for decades.

While renewables are growing in electricity generation, natural gas use and demand is growing elsewhere in the Australian economy.

In fact, 2021 was a record year of gas production in Australia. More than seventy percent of our gas goes to powering our local industries - a new gas supply agreement was signed every three weeks last year; our neighbours expect demand growth in excess of 28 percent; and it is also a key ingredient in Australian products.

And the multibillion-dollar pipeline of oil and gas projects planned by the industry in coming years will enhance that strong position, delivering more investment, jobs and economic stimulus. More than $22 billion worth of projects were announced last year to be invested in Australia by the oil and gas industry in coming years.

The problem some of our critics forget is that the debate over the cleaner energy challenge confronting the world should not be binary. It’s not about whether to have gas or not.

It should be a more complex debate about how different energy sources will fit together in the future energy mix.