Why Natural Gas

SUSTAINING OUR WAY OF LIFE

Natural gas is vital to Australia’s prosperity. It provides energy to millions of households and powers essential industries including manufacturing, agriculture, transport, and construction.

Industry statistics

Statistics that matter

As the world’s seventh-largest gas producer and a leading liquefied natural gas (LNG) exporter, Australia's natural gas generates over $81 billion in export revenue and supports 258,000 jobs nationwide.

Natural gas also emits significantly fewer carbon emissions than coal and provides power when the sun isn’t shining and the wind isn’t blowing, avoiding blackouts.

$81B

Annual export revenue
strengthenS our  prosperity while reducing GLOBAL CARBON EMISSIONS.

$121B

CONTRIBUTION TO THE ECONOMY
drives growth, supports jobs, and underpins vital industries.

26%

OF OUR ENERGY USE
making it essential energy to households and industrial uses.

258K

full time gas jobs
natural gas sector directly and indirectly supports 258,000 jobs nationwide.

#1

INDUSTRIAL energy source
with the manufacturing sector consuming 380 PJ in 2020–21

#7

GLOBAL gas producer
Australian gas meets domestic energy needs and contributes to global energy.

18M

residential gas appliances
Heaters, water , stoves, and ovens across Australia are powered by gas.

313K

households are in energy debt
Millions more are struggling to pay energy bills.

2027

predicted gas shortages
Without new gas investments, OUR east coast faces shortages, rising bills, and industrial setbacks

The Products Powered by Natural Gas

Natural gas is essential to creating products and services that Australians rely on every day.

FertiliSers

Natural gas is essential in producing nitrogen fertilisers, which improve soil fertility and support Australia’s food supply.

Pharmaceuticals

Pharmaceuticals, including pain relievers and anesthetics, rely on natural gas as a feedstock in the manufacturing process.

Glass

Glass manufacturing relies on natural gas to melt raw materials, creating products for homes, vehicles, and industries.

Clothes

Synthetic fibres like nylon and polyester, made from natural gas, provide durability, elasticity, and ease of care in clothing.

Paint

Natural gas-based solvents and resins give paint its consistency, durability, and protective finish for homes and industry.

mobile phones

Mobile phones use plastics and synthetic rubbers from natural gas, making them durable, lightweight, and reliable.

Hearing aids

Advanced plastics from natural gas make hearing aids lightweight, durable, and compact, improving accessibility for hearing-impaired Australians.

laptops

Natural gas-derived plastics and components ensure laptops remain lightweight, durable, and structurally sound for everyday use.

shampoo

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glasses

Eyeglass frames and lenses use plastics and polymers derived from natural gas for strength, flexibility, and clarity.

CAMERAS

Natural gas-derived plastics and synthetic rubbers are used in camera bodies, lenses, and accessories for durability and performance.
Have a Question?

Frequently asked questions

How does natural gas contribute to Australia's economy?

Natural gas contributes over $121 billion annually and supports 258,000 jobs. It is also one of the nation’s top exports, generating $81 billion in 2022 and supporting trade relationships worldwide. 

Does Australia still need natural gas?

Yes, natural gas is crucial for affordable, reliable energy. It powers industries, homes, and businesses while enabling a practical, lower-emission pathway away from coal and providing dispatchable electricity when the sun isn’t shining and the wind isn’t blowing. Without gas, energy prices would skyrocket, and we would risk blackouts. 

What are the risks of phasing out natural gas too quickly?

A rapid phase-out of natural gas risks increased reliance on coal, leading to higher emissions and undermining climate goals. It could also result in energy shortages and blackouts, as natural gas stabilises the grid during peak demand and renewable intermittency. The economic impact could also be severe, with job losses, reduced regional investment, and rising energy costs affecting households and businesses. 

How does increasing natural gas supply cut household bills?

When more gas is available domestically, wholesale prices fall, leading to lower energy costs for consumers and delinking Australia from higher international prices, according to the Australian Energy Regulator (AER)

Why isn’t Australia producing more gas?

We have abundant natural gas underneath our feet, but barriers to new domestic gas supply have limited supply due to lengthy regulatory processes and policy uncertainty. According to the ACCC, Australia’s east coast could face structural gas shortfalls by 2027. This points to the urgent need to increase domestic production. 

Isn’t the world moving away from natural gas?

No, global demand for natural gas is projected to grow by 10-15% by 2030 according to McKinsey & Co, driven by increased use in the Middle East, China, and other regions for power generation and industrial applications. This growth is primarily fuelled by natural gas replacing coal, reducing carbon emissions and air pollutants. The alternative to gas is a dirtier, poorer world. 

How does natural gas support Australian households?

Natural gas provides electricity to millions of Australian households and powers boilers, water systems, stoves, and ovens. It is also an essential ingredient for countless household items, like clothes, bandages, and garbage bags.

Why is natural gas considered a cleaner energy source?

Natural gas emits up to 50% less carbon dioxide than coal per unit of energy, making it a cleaner alternative for power generation and industrial use. It also produces fewer pollutants like sulfur dioxide (SO₂), nitrogen oxides (NOₓ), and particulate matter, leading to improved air quality and reduced health risks.  

How does natural gas complement renewable energy?

Natural gas fills the gaps left by intermittent renewable sources like solar and wind, ensuring a consistent power supply. This makes renewables more viable by maintaining grid reliability.  

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