Gas-Fired Recovery

Last updated: 5 April 2022

The Australian government announced a new plan for the development of the gas sector. The gas-fired recovery is intended to contribute to strengthen Australian economy, by making energy affordable for businesses and households and by supporting the job market, in the aftermath of the COVID-19 recession.

The Australian Gas Hub and, in particular, the east coast gas market will benefit from the plan, with additional gas supply unlocked, the development of the pipeline network and the empowerment of gas customers.

More affordable gas will be injected into the market by:

-      Setting new gas supply targets, enforcing ‘’use-it or lose-it’’ conditions on gas licenses.

-      Developing five Strategic Basin Plans to unlock vast gas reserves, so that domestic supply increases and comes at lower prices. AUD 28.3 million are allocated for the Beetaloo Basin (NT), the North Bowen (Queensland) and the Galilee Basin (Queensland).

-      Setting up new arrangements with the three east coast LNG exporters will make gas less exposed to supply shortfalls.

-      Supporting the Commonwealth Science and Industrial Research Organisation’s Gas Industry Social and Environmental Research Alliance with AUD 13.7 million.

-      Developing a gas reservation scheme.


The gas transport network will be improved by:

-      Under the inaugural National Gas Infrastructure Plan (NGIP), worth AUD 10.0 million, priority pipelines and critical infrastructure will be identified.

-      Increasing competition and transparency by reforming the regulations on pipeline infrastructure.

-      Introducing a secondary pipeline capacity market to enhance pipeline access and competition.


Gas consumers will be empowered by:

-      Developing the Australian Gas Hub at the Wallumbia Gas trading hub and improving the pipeline capacity trading framework.

-      Introducing a voluntary Code of Conduct for the gas industry.

-      Monitoring that consumers are paying the right price for the gas they receive.

-      Making the industry more transparent and competitive.


On 5 October 2021, the Government awarded AUD 30 million for the Port Kembla gas-fired power station project, as it helps in increasing gas supply from one of the State's LNG entry points.

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