Chemistry Australia welcomes the Federal Government’s announcement of an east coast gas reservation scheme to strengthen domestic supply and affordability for Australian chemical manufacturers and industrial users.

The policy is a positive step toward building confidence and ensuring Australia and its manufacturing industry has access to the reliable, long-term supply of competitively priced gas it needs to be globally competitive.

“The current global situation presents a window for Australia to attract investment and build resilience in key domestic industries in the face of supply chain disruptions,” said Matthew Flugge, Chief Executive Officer of Chemistry Australia.

“Securing an affordable, reliable Australian gas supply for chemical and plastics manufacturing is critical to keeping the Australian economy strong and globally competitive.”

Gas is a critical input for the chemicals and plastics sector, which underpins 108 of Australia’s 114 industries and supports around 240,000 jobs across supply chains from fertiliser production for agriculture to essential inputs for mining, healthcare and food production.

“The chemicals and plastics sector supports hundreds of thousands of jobs and underpins almost every part of the economy, competitive gas is essential to keeping that system running,” Mr Flugge said.

Improving certainty around gas supply and pricing will help unlock investment, strengthen sovereign capability, and support Australia’s broader economic and energy transition objectives.

The Australian chemical industry uniquely uses gas as feedstock to manufacture high value-add products for major industries across the country that underpin the economy.

“The announcement by the Federal Government is an important turning point,” Mr Flugge said.

“A well-designed reservation system can improve market transparency and give gas producers and chemical manufacturing businesses the confidence they need to continue to invest in Australia."

“What matters most is ensuring Australian manufacturers have reliable access to gas at prices that are competitive globally. If we get that right, we unlock investment and create products that this country needs every day and secures regional and urban jobs.

“We recognise the Government’s efforts to put downward pressure on prices and restore certainty, and we look forward to working constructively to a framework that provides certainty for chemical manufacturers and gas producers to continue to invest in Australia.”