Major Australian organisations have hit back at the recent announcement from Energy Minister Angus Taylor to invest $50 million in an effort to expand the domestic gas industry. 

Last week Mr Taylor announced that seven priority natural gas infrastructure projects will see $50.3 million poured into them to protect the nation from potential energy shortages, keep pressure on prices and create jobs in regional NSW. 

The investment came in response to a report from the International energy Agency (IEA), who noted that Europe’s spike in prices was driven in part by a lack of investment in supply and infrastructure. 

“The ACCC and AEMO have made multiple warnings of the forecast gas supply shortfall in the east coast market as early as this decade. This, along with the energy crisis in Europe, should act as a warning of what could happen in Australia if there is not enough investment in the gas sector at home,” Minister Taylor said.

Spokespeople from across Australia, however, have questioned Minister Taylor’s investment. 

Climate Council Senior Researcher Tim Baxter said that it is ‘nonsense’ to pretend that Australia has a gas supply problem. 

“Australia produces five times more gas each year than is used for domestic purposes, but the vast majority is exported,” Mr Baxter said. 

The investment announcement came just prior to the sixth assessment report from the Intergovernmental Panel on Climate Change (IPCC), which warned countries to drastically slash emissions from coal, oil and natural gas for any chance of limiting global warming to 1.5 degrees this decade. 

Minister Taylor, however, said that the carbon capture and storage infrastructure that will accompany the gas projects will keep the country on track with commitments. 

“The IEA, the Biden Administration, and the Intergovernmental Panel on Climate Change have all recognised CCUS as an essential technology to achieve the goals of the Paris Agreement,” Minister Taylor said. 

Mr Baxter said that more focus should be invested in keeping Australian gas in the domestic market as a way of achieving energy security.

“Truly, it is difficult to imagine a worse place to throw public money right now. Last night, the UN Secretary General said expanding fossil fuel production in response to supply problems created by Russia's war in Ukraine was "madness", and that "addiction to fossil fuels is mutually assured destruction,” Mr Baxter said.

National Coordinator for Lock the Gate Alliance Carmel Flint expressed concern that the investment would tie Australia to fossil gas, forgetting renewable energy efforts. 

“By prioritising gas for export, the Federal Government keeps Australia tied to global gas prices, thereby driving up the cost of gas for Australian consumers. 

Locally, the Gomeroi Nation voted overwhelmingly to reject a proposal from Santos to establish the Pilliga coal seam gas project. 

The investment was released in last week’s budget, with the funding to flow for the 7 priority natural gas projects over the coming two years.