14 December 2023
Updated Gas Substitution Roadmap
Australian Gas Infrastructure Group (AGIG) notes the release today of the Victorian Government's updated Gas Substitution Roadmap.
The updated Roadmap announces an ongoing consultation focused on the future role of gas in Victoria. It also foreshadows a policy directions paper on renewable gas to support the development of that sector for industry.
AGIG welcomes the announcement of further industry consultation and the continuing work to develop renewable gas alternatives. AGIG looks forward to engaging in the consultation process to ensure that the true impacts of the Victorian Government's electrification policies are brought to light and properly taken into account.
AGIG also notes the comments by the Government of potential cost savings from electrification. CEO Mr de Laine noted that "the cost savings assumed from a potential move to electrification, in our view, are misleading. For example, the Government's estimates don’t take into account the cost of electricity infrastructure upgrades and the much higher cost of the appliances relied on by the Government to deliver the assumed cost savings. We simply do not believe those savings are achievable for most Victorians."
"Limiting options in the future will also drive-up costs and we are concerned about what that means for jobs in Victoria."
"Further, if the Government's focus is on reducing emissions, it does not make sense to replace gas with electricity, especially with the slow deployment of renewable electricity in the state and the ongoing heavy reliance on brown-coal for electricity generation, which is far higher in emissions than natural gas" Mr de Laine said.
AGIG also rejects the comments made in the Victorian Government's media release that its disconnection fees are 'exorbitant' and that inducements to install gas appliances are 'dodgy'. Disconnection fees reflect the efficient costs of the disconnection and have regulatory oversight by the Australian Energy Regulator. Gas appliance rebates assist customers, particularly vulnerable customers, with cost-of-living pressures. Ironically, rebates are proposed to be increased by the Victorian Government for electrical appliances in the updated Gas Substitution Roadmap.
We will make further comment when we have fully considered the updated Gas Substitution Roadmap.
Background
AGIG owns, operates and invests in infrastructure which delivers gas to more than two million homes and businesses, including nearly 1.5 million Victorians.
It powers generators, mines, manufacturers and household appliances and the combined network makes AGIG one of the largest gas infrastructure businesses in Australia.
AGIG manages over 35,000km of world-class distribution networks, more than 4,300km of transmission pipelines and 60 petajoules of storage capacity, valued at a combined $10 billion.
We employ approximately 400 people with more than 1,600 contractors working on our business.
AGIG is leading the Australian renewable hydrogen industry, with the establishment of Hydrogen Park SA, the largest electrolyser in Australia, the construction of Hydrogen Park Murray Valley and several other renewable hydrogen and biomethane projects in development. AGIG has a low carbon vision to deliver 100% renewable gas by no later than 2050, with at least 10% renewable gas blends delivered to homes and businesses though our distribution networks by 2030.
More information on HyP Murray Valley can be found here.
For Further Information Contact
Mitchell Cutting, Senior Communications Manager
M +61 460 018 065