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Gas market reforms a positive step forward for Australian manufacturers

12 December 2022

Chemistry Australia and its members welcome the significant gas market reforms announced by the Albanese Government.

Chemistry Australia CEO Samantha Read said the proposed measures address barriers to investment resulting from unsustainably high gas prices and better enable the manufacturing sector to add value to this key Australian resource. 

“The chemistry industry supports the unprecedented steps proposed to shield the Australian economy from record-high gas prices and safeguard Australia’s significant investments in its manufacturing base,” said Ms Read.

“Affordable gas is essential for Australia to allow continued investment in its domestic manufacturing industries, which will be critical to the delivery of decarbonisation solutions such as hydrogen and green ammonia.”

“It is also a key enabler of technologies including advanced recycling of plastics to support Australia’s transition to a circular economy.

“These technologies and opportunities are now better able to be realised as part of the Government’s $15 billion National Reconstruction Fund.

“The measures will help ensure the Australian chemistry industry continues to deliver $38 billion to the economy and support 212,000 direct and indirect jobs.

“A 12-month price cap will provide necessary short-term relief for manufacturers facing investment decisions in the next year.

“The introduction of a mandatory Code of Conduct is an important regulatory mechanism necessary to re-balance the negotiating environment for gas users.

“We look forward to working with the Albanese Government to ensure Australian manufacturers are better placed to play their role in transitioning the Australian economy.”

Media contacts:

Shayna Welsh – or 0448 660 443

Chemistry Australia is the pre-eminent national body representing the Australian chemistry industry, one of the largest manufacturing sectors in the country. The industry supports more than 212,000 full time jobs and contributes more than $38 billion to Australia’s GDP. 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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    By working together, we can have a stronger voice to prosecute the key challenges facing our industry and advance chemistry as a critical enabler of a safer, more sustainable future for Australia and the broader community.

    Chemistry Australia Chair, David Hawkins

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