Woodside calls for gas power funding

Woodside Energy has called for taxpayer-funded development support to extend to gas power projects, in a submission to the federal government’s Future Gas Strategy.

The submission dated November 2023 but released today, which outlines a range of recommendations from the LNG producer, including an extension to the Capacity Investment Scheme to cover gas power projects.

Woodside recommended the scheme – which uses taxpayer funds to underwrite investment in clean power generation and storage capacity – be extended across to gas power projects.

Fossil fuel generated power including coal and gas are not covered by the initiative, which was first announced in 2022 and expanded late last year.

In addition, Woodside suggested a ‘Gas and Critical Minerals Ministerial Council’ be established as part of national cabinet framework, overseeing development progress across the country.

“This could serve the dual purpose of ensuring resource development keeps pace with energy transition targets and remove any conflicting policy positions,” the submission said.

“It could be the forum for discussing the role of gas in providing energy security to critical regional partners.”

The exact structure such a council would adopt is unclear.

The producer called on the government to unequivocally back in the importance of gas, highlighting its significance to national plans for the renewable build-out.

Woodside’s approvals battles were also addressed, with the company expressing its desire for a commitment from the government to legislative improvement and environmental regulation reform.

These calls come in the wake of delays at the company’s Scarborough gas project, where an approval of seismic testing work from the offshore regulator was overturned by the federal court after it was found to have been granted unlawfully.

A two-month delay followed, while Woodside re-applied for approvals to carry out the work.

Woodside’s submission said timeliness and certainty were critical in any revision to the approvals process and would have positive flow on effects for renewables projects.

“This has the added benefit of providing a framework to streamline the approvals process required for renewable energy projects, the transmission network and the critical minerals sector,” the submission said.

Government intervention in gas markets was discouraged, while the submission also called for amendments to the emissions-focused Safeguard Mechanism which incentivise the purchase or import of externally produced renewable power at high-emitting projects.

“It’s our view that a stable energy transition will be one in which energy is secure, affordable and reliable and in this regard, we look forward to supporting the government in the development of the Future Gas Strategy,” Woodside said.

The Future Gas Strategy will set a long-term path for decision making around the fuel in Australia, and is expected to be released mid-year.