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Chemistry Australia calls for further action on national domestic gas strategy - 20 December 2018

Chemistry Australia calls for further action on national domestic gas strategy


Chemistry Australia has reiterated the need for a national domestic gas strategy following the release of the ACCC December 2018 Gas Inquiry Interim Report earlier this week and COAG Energy Council progress on electricity reforms.

Chemistry Australia – the peak body for the Australian chemistry industry – has noted the need to re-focus on a comprehensive plan that deals with the growing body of evidence of structural failures within the East Coast Gas Market.

Chemistry Australia CEO Samantha Read said that a properly functioning domestic gas market does not currently exist in Australia.

“Industrial customers need more gas from more gas suppliers in a competitive and transparent market,” she said.

“Two major reports in two weeks by the ACCC and the United States Studies Centre have again highlighted the significant damage being incurred by consumers and the Australian economy due to the ongoing East Coast gas crisis.”

“Sustained high gas prices and supply constraints have made Australia an uncompetitive location for industrial manufacturing.

“Some of our members who rely on gas as a feedstock and energy source are telling us prices have tripled in the last decade and even small shifts in gas prices are costing them millions of dollars.

“As explained by the ACCC and USSC, key businesses in our sector will be forced to close or move their operations offshore if gas pricing and transparency of pricing negotiations are not addressed.

“The Australian chemistry industry is keen to work with governments to develop a national plan that balances supply to the domestic and international markets and facilitates investment to support a sustainable industry sector in Australia.”

The Australian chemistry industry currently supplies 109 of Australia’s 111 industries and contributes around $11.9 billion to the Australian economy every year.

The Australian chemistry sector is a significant industrial user of gas, with many of its member companies located on Australia’s East Coast where gas supply has become increasingly expensive and insecure. 

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 per cent 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 crops, cleaning products for health and hygiene in homes and hospitals, and smart packaging to keep food fresher for longer.

Media contacts:
Shayna Welsh – [email protected] or 0448 660 443


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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