There has been some improvement to the adequacy of gas supplies in Australia with latest forecasts from the Australian Energy Market Operator (AEMO) showing risks to gas adequacy are now forecast to occur one year later than previously forecast.
AEMO's 2026 Gas Statement of Opportunities forecasts that from 2030 supply gaps under most weather conditions indicate a need for new supply.
It also notes that gas consumption will decline to 2045 as more households and businesses electrify and use less gas over time.
As more renewable energy and battery storage come online, gas is increasingly being freed up for the uses that need it most, including industry and firming the grid when required.
Minister for Climate Change and Energy Chris Bowen said the improved outlook showed the Albanese Government's balanced energy plan was working.
"This report shows practical action is making a difference. More renewables, more batteries and sensible gas policy are improving energy security and putting Australia in a stronger position." Minister Bowen said.
"For the first time in 2025, more than half the grid was powered by cheaper, cleaner energy that's generated by renewables, backed by battery storage and gas peaking when needed, which puts downward pressure on energy bills.
"At the same time, we have secured up to 644 petajoules of gas for Australians, helping ensure reliable supply for households, industry and the electricity grid.
"That is what a responsible energy policy looks like, backing in the cleaner, cheaper energy of the future while making sure the system stays reliable every step of the way."
The Albanese Government's ongoing support for renewable generation, battery storage, electrification and energy efficiency will continue to drive down demand over time and free up supply to go where it is needed most.
The Government is also progressing a domestic gas reservation to ensure Australians continue to have secure, affordable gas.
The final model of the system is being developed in consultation with producers, manufacturers and trade partners and is expected to commence in early 2027.
