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Renewables, Climate and Future Industries Tasmania

Gas and decarbonisation

Future Gas Strategy and decarbonisation

Future Gas Strategy

Since 2003, natural gas has been supplied to Tasmania via an underwater gas pipeline from Victoria.  There are approximately 1,050 business gas customers and 13,500 residential gas customers in the state.

The Government is developing a Future Gas Strategy (Strategy) that will aim to provide certainty for all gas market participants in Tasmania on the future role of gas in Tasmania over the next 20-30 years.

The Government has established a Gas Strategy Working Group to support the development of the Strategy which includes key industry and consumer representatives.

A Discussion Paper was released on 12 November 2021 as the first phase of a consultation process to understand the views of business, households, and the community about the future role of gas in Tasmania. The Discussion Paper sets out the current state of the gas market in Tasmania and some of the policy and market factors that are likely to influence its future.

The public consultation period closed on 21 January 2022 and 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.

The Government is currently considering the feedback and a draft Future Gas Strategy will be released in the first half of 2022.

Gas decarbonisation

Tasmania, as Australia’s leading renewable energy state, has set a clear policy agenda that reflects its commitment to reducing carbon emissions, promoting renewable energy and transitioning away from fossil fuels.

While Tasmania’s gas sector is far smaller than other Australian states, there are significant opportunities to decarbonise our natural gas network. Potential pathways include the use of locally produced hydrogen, renewable (synthetic) methane or the production of biogas.

As part of the Government’s commitments under the Tasmanian Renewable Energy Action Plan, gas decarbonisation pathways have been considered as part of the Future Gas Strategy.

As part of the development of the Future Gas Strategy and, the Government commissioned a report by Oakley Greenwood which provides advice on what the future of gas in Tasmania could look and potential decarbonisation pathways. A copy of this report and Discussion paper is available on our consultation page.