Tasmanian Future Gas Strategy

The Tasmanian Government released the Tasmanian Future Gas Strategy on 7 November 2023. By outlining the government's vision for the future of gas in Tasmania, the strategy aims to help gas users and suppliers make informed choices and investment decisions during a time of uncertainty and rapid transition for the industry.

Tasmania, as Australia's leading renewable energy state, has set a clear policy agenda to reduce greenhouse gas emissions, promote renewable energy and transition away from fossil fuels. These ambitious goals, along with the growing uncertainty around the future availability of gas and global and domestic price pressures, supports the need for Tasmania to consider alternatives to current fossil gas use.

The Strategy sets out four alternatives: electrification, bioenergy, renewable hydrogen and other synthetic renewable gases. There is unlikely to be a single option to meet all needs, but rather, a mix of alternatives that will enable gas users to tailor solutions to their particular needs.

The government recognises that there are challenges for gas users to immediately adopt renewable alternatives, particularly for commercial and industrial users. These alternatives may not yet be economically or technically viable for many users. Fossil gas is therefore expected to continue to play an important role in Tasmania over the medium term while these other technologies are further developed.

The Strategy supports consumer choice and the ability of energy users to choose the fuel that best meets their needs however, it will not prolong the use of natural gas beyond the time it is needed.

Importantly, the government will review the Strategy within four years given how quickly technologies are developing and the rate the energy sector is changing as it transitions to net zero emissions.

The government has committed to explore if, and how, targets could be established to support Tasmania's transition away from fossil gas with a view to potentially including those targets in a future update to this Strategy. More information will be available as the government works with industry and the community around the best form for a potential target and what an achievable timeframe is for the transition.

Stakeholder and Community Consultation

To develop the strategy, the government worked hard to understand the views of business, households, and the community about the future role of gas in Tasmania.

The government established a Gas Strategy Working Group to support the development of the strategy which included key industry and consumer representatives.

There have also been two phases of public consultation:

• A Discussion Paper was released in late 2021 seeking views on the issues facing the Tasmanian gas industry. A copy of this Discussion Paper is available on our consultation page.
  Twelve submissions were received from a range of stakeholders representing the interests of household, industrial and small business consumers, gas infrastructure providers, environmental groups and investors in emerging renewable industries.
  
  A summary of the feedback on the discussion paper (DOCX 401.1 KB) has been prepared and the full version of all non-confidential submissions can be found on our consultation page.

• A draft Future Gas Strategy was released on 28 October 2022 as the second phase of public consultation. The draft strategy outlined a vision of the future of gas in Tasmania, including natural gas, LPG, renewable gases and the role of increased electrification.
  
  Public consultation closed on 12 January 2023. Eighteen submissions were received from a range of stakeholders.
  A summary of the feedback on the Draft Future Gas Strategy (PDF 868.3 KB) and the full version of all non-confidential submissions can be found on our consultation page.

The feedback has informed the development of the Strategy and the government will continue working to ensure we are engaged and listening to the community as the gas sector transitions.