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Australian chemistry industry welcomes decisive action on gas crisis for manufacturers - 27 April 2017

Australia’s second largest manufacturing sector, the Australian chemistry industry, welcomes the decisive action announced by Prime Minister Malcolm Turnbull to bring urgent balance to Australia’s domestic gas market.

“Forecast losses of $118 billion in manufacturing output are already happening [1], but today’s action gives industry hope of reducing the scale.

 “While the industry’s preference is for a competitive and free market, the Government’s assistance in re-balancing supply and price factors is warranted,” said Chemistry Australia CEO, Samantha Read.

“This means ensuring that gas supply meets the needs of the entire domestic market, including industrial users. The Australian chemistry industry is keen to see a significant reduction in industrial gas prices and improved supply certainty, which are crucial to the viability of the business of chemistry and importantly, its domestic customers.

“Domestic industrial gas users making decisions today about the viability of their operations in Australia, will have some cause for optimism. But to secure ongoing investment, there needs to be sustainable long-term reform to bring on new supply, from more suppliers, into a well-functioning gas market.

“Today’s critical action by the Federal Government alone, won’t fix the long-term gas crisis. State and Territory Governments need to recognise their important role in gas supply and urgently reassess moratoria, which are also constraining supply and threatening thousands of Australian jobs.

“We look forward to seeing further detail on how the mechanism will be implemented,” said Ms Read.


Gas is particularly essential to the business of chemistry. It’s important for process energy, and it is also a non-substitutable ingredient for advanced manufacturing.

The Australian chemistry industry uses 10% of Australia’s domestic gas for its molecular properties to create a huge range of products essential to our everyday lives. These include fertilisers for our crops, cleaning products for health and hygiene in our homes and hospitals, and smart packaging to keep our food fresher for longer.


1: Deloitte Access Economics Report for the period of 2014 to 2021, in net present value terms.


Chemistry Australia Media contacts:
Krista Imberger – [email protected] or 0439 318 290
Claire Selby – [email protected] or 0448 028 876

Chemistry Australia is the pre-eminent national body representing the $40 billion Australian chemistry industry, one of the largest manufacturing sectors in the country. The industry employs more than 60,000 people and contributes more than $11.6 billion to GDP in industry value add. Members of Chemistry Australia are positioned across the entire value chain including manufacturers, importers and distributors, logistics and supply chain partners, raw material suppliers, fabricators, compounders, recyclers, research, academia and service providers to the industry. These businesses range from small family-owned companies to leading national and multinational enterprises.




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