With Australian consumers heading for gas shortfalls, Queensland’s multibillion-dollar gas export sector – which turns most of the gas it produces into super-chilled liquefied natural gas (LNG) and sells it to Asia – has faced renewed criticism from environmental campaigners and Victorian Energy Minister Lily D’Ambrosio, who accuses the LNG ventures of putting their “export profits ahead of domestic supply needs”.

‘The warning bells continue to toll, but no real solutions are forthcoming.’

Senex CEO Ian Davies

LNG exporters are in talks with the federal government over how much extra spare gas they may be able to sell locally over the next year, which would help improve the supply outlook.

However, Berman told Tuesday’s conference that more Queensland gas would do little to avert a supply crisis in Victoria or NSW on days of peak heating demand, as the pipelines running south are already regularly at full capacity during winter.

“The only sustainable way to both ensure reliable supply and apply downward pressure on price ... is to develop new sources of gas supply close to where consumers need it,” he said.

Gas producer Senex Energy has struck deals to supply major Australian gas users and retailers including AGL and Energy Australia from its planned $1 billion Atlas gas project in the Surat Basin, but on Tuesday said the project was still waiting for federal environmental approval more than 500 days after applying.

Senex chief executive Ian Davies said AEMO’s report was a timely reminder of the urgent need for more supply.

“The warning bells continue to toll, but no real solutions are forthcoming,” Davies said.

The energy sector is pursuing other options to help plug shortfalls in the south, including plans to build specialised import terminals capable of receiving shipments of LNG from Queensland, Western Australia, or overseas and turning it back into vapour to supply local consumers.

Squadron Energy, part of the billionaire Forrest family’s Tattarang Group, has reported that the construction of its Port Kembla LNG terminal near Wollongong is now “more than 90 per cent complete”.

On Tuesday, energy infrastructure company Jemena unveiled plans to reverse the direction of the Eastern Gas Pipeline so that it can transport gas from Port Kembla into towns and cities in Victoria.

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Since it was commissioned 24 years ago, the pipeline has traditionally brought gas from Bass Strait to the NSW market and, at times, supplied up to 70 per cent of the state’s gas. Cameron Dorse, Jemena’s head of gas markets, said planning was “well-advanced” for the first stage of the reversal project to enable it to flow bidirectionally and send up to 200 terajoules a day south in time for winter 2026.

“The reversal project and Port Kembla Energy Terminal is the only realistic and viable option available to the market to make additional gas available quickly,” Dorse said.