Energy Minister Chris Bowen says the energy regulator has allowed for more gas to be released to the south-eastern states, but the crisis is far from over.
Faced with the Labor government’s first crisis, Mr Bowen confirmed the Australian Energy Market Operator has activated the gas supply guarantee in the face of soaring prices.
But he said the separate so-called gas trigger, that was put in place by the previous government that would see gas exports diverted for domestic use, would not come into operation until January 1 even if it was pulled now.
“It’s about as blunt as a basketball in term of its effectiveness,” Mr Bowen told Sky News’ Sunday Agenda program.
“It is not the answer to this short-term crisis.”
He said Resources Minister Madeleine King has been talking to Australia’s gas companies, while he will be talking to state and territory state ministers this week.
Gas producer Santos on Sunday said it and joint venture partner Beach Energy aim to deliver extra domestic supply by the end of the year, with steps including bringing a fifth drilling rig into the Cooper Basin and optimising well connections.
Asked whether he would implement a gas reserve plan like Western Australia, Mr Bowen said the government is looking at any sensible measure, although added it’s not just about gas, it’s about the entire energy supply system.
He said he was not blaming the previous government for issues that have combined to fuel the spike in gas prices – the flooding in coal mines and other supply issues, or the war in Ukraine situation.
“What I am blaming them for very clearly is a lack of a coherent policy framework,” he said.
New Nationals leader David Littleproud has had detailed conversations with the former energy minister Angus Taylor and has assured him there are ways that can increase supply now.
“(Gas companies) do have the capacity to increase supply and that’s where you need to have a relationship with them and being able to work with them,” Mr Littleproud told ABC’s Insiders program.
New Liberal Leader Peter Dutton said Mr Bowen is demonstrating his inexperience and “doesn’t know which way to jump”.
But Mr Bowen scoffed at the comments of the previous government.
“Advice from the previous government, which Angus Taylor has been happy to give out – and I notice Peter Dutton has been giving out – is about as effective as advice from the captain of the Titanic on navigation skills,” he said.
By Colin Brinsden, AAP Economics and Business Correspondent in Canberra
