Australia’s competition watchdog has previously warned the country faces a gas shortfall in 2024. A peak industry association representing Queensland’s minerals and energy producers has criticized the state government for banning new oil and gas development in the country’s largest drainage basin. The ban came a few days after Queensland Premier Steven Miles assumed the position of the state’s leader following the resignation of predecessor, Annastacia Palaszczuk. Under the ban, the Queensland government will prohibit all future oil and gas production in the Lake Eyre Basin’s rivers and floodplains. However, the ban will not cover existing approved conventional gas developments, and holders of existing petroleum exploration permits can apply for a production lease until Aug. 30, 2024.
Lake Eyre Basin is one of the largest drainage basins in the world, covering an area of 1.2 million square kilometers. Large tracts of the basin are considered arid, supporting just 60,000 people, with the major land use (82 percent) being for low-density grazing. It is also well-known for containing significant oil and gas resources. Following the announcement, Queensland Resources Council CEO Ian Macfarlane criticized the state government for not considering the social and economic impact of preventing further expansion of Australia’s gas reserves.
Reports indicate Australia’s East Coast is facing another gas shortage and will rely on Queensland producers to ensure supply. Less supply means higher gas prices for Australians already struggling with cost-of-living pressures. The CEO noted that the decision was a blow to the energy sector, which had engaged in good faith with the Queensland government and other stakeholders. Mr. Macfarlane also believed the ban would create more policy uncertainty for the resources sector and hinder new investments while impacting the livelihood of local communities relying on oil and gas extraction. His remarks come after a June report by the Australian Competition and Consumer Commission indicated that Australia’s southern states would likely experience a gas shortfall in 2024.Mr. Miles said the new policy would protect the Lake Eyre Basin for future generations of Queenslanders.
Meanwhile, the Queensland Environment Minister highlighted the importance of preserving the Basin. The Miles government is committed to the ongoing preservation of the ecological and cultural values in the rivers, watercourses, and floodplains of the Queensland Lake Eyre Basin and First Nations Peoples’ connection to the land. Environmentalist group Lock The Gate welcomed the ban and hoped to see more similar policies from the government.