Briefing paper: Why more Victorian gas won’t lower prices

Energy prices and household budgets are a significant issue in the leadup to the 2022 Victorian election. This briefing paper provides some facts and analysis regarding known gas reserves in Victoria, gas prices, and the benefits of household electrification as an alternative to new gas supply projects.

Gas prices in Victoria are likely to remain high for the foreseeable future due to four factors:

1. Victoria has very little new sources of conventional gas within its jurisdiction, with small chances of increasing supply
2. There is a lack of retail market competition
3. Eastern Australia’s gas price is linked to high global prices
4. Import terminals would import expensive gas

This briefing paper explains each of these four issues, and also why sufficient renewables with storage are a cheaper and more resilient alternative to new onshore conventional gas development.

You can read or download the full briefing paper below.

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