The Victorian Government formed after the November election has an opportunity to unlock natural gas supplies and deliver affordable electricity to revitalise local manufacturing, create jobs, improve sovereign capability and build resilient supply chains.

Chemistry Australia CEO Matthew Flügge said natural gas was a feedstock for manufacturers of value-added chemical products and key to Victoria’s industrial future.

“In an uncertain geopolitical environment, Australia must be able to access its own resources and enable its full industrial capability. Natural gas plays a critical role in keeping essential industries operating and the economy moving, particularly in the transition to a low emission economy,” said Mr Flügge.

“New supply of domestic gas at $10 a gigajoule on long term supply contracts would attract new manufacturing investment to Victoria and see mothballed infrastructure, such as Australia’s only methanol plant, back in operation,” he said.

Restarting Coogee Chemical’s Laverton methanol plant would support hundreds of contracting jobs and directly employ up to 38 people, while supplying materials to downstream industries that generate significant income and jobs for Victoria across the housing construction, critical minerals, and transport sectors.

Mr Flügge said access to local gas would help secure the supply of critical chemicals and packaging materials needed to support interconnected industries across the Victorian economy, including agriculture, food and beverage, housing and healthcare.

“The chemical manufacturing sector adds more than $430 million of economic value to every petajoule of gas it uses. Unlocking new conventional gas supplies in Victoria would enable industries like ours to help rebuild Victoria’s industrial capability, creating new local jobs and driving greater supply chain resilience,” said Mr Flügge.

“Electricity is also a significant input into chemical manufacturing in Victoria, covering everything from the production of oxygen for use in hospitals and healthcare facilities to the chlor alkali process to make products for drinking water and agriculture inputs.

“We encourage the next Victorian Government to work with the Australian chemicals industry to explore how the state can open new supplies of conventional gas and affordable electricity to support vital industrial and economic growth for Victorians, and the transition to a net zero future,” Mr Flugge said.

Adding value to Australia’s natural gas resources

Australian chemical manufacturing transforms gas into higher-value products, supporting skilled jobs, sovereign capability and complex domestic value chains.

For every petajoule of gas consumed, the chemical industry contributes between $317 million and $430 million to GDP and supports up to 2,429 full-time equivalent jobs. By comparison, LNG exports contribute approximately $14.5 million in economic output and support 7 to 10 jobs per PJ consumed. (ACIL Allen, August 2026)