Gas and decarbonisation

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.

We are helping develop a Future Gas Strategy to help gas market participants make informed choices and investment decisions at a time when the industry is facing a period of rapid transition.

Tasmania, as Australia’s leading renewable energy state, has set a clear policy agenda that reflects its commitment to reducing carbon emissions, which is why Gas decarbonisation pathways have been considered as part of the Future Gas Strategy.

The Tasmanian Government is developing a Future Gas Strategy for Tasmania. By outlining its vision for the future of gas in Tasmania over the next 20-30 years, the strategy is intended to help gas market participants make informed choices and investment decisions at a time when the industry is facing a period of rapid transition.

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 in late 2021 as the first phase of a consultation process to understand the views of business, households and the community about the role of gas in Tasmania.

A copy of this discussion paper is available on our consultation page.

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 (PDF 820.9 KB) has been prepared. This and the full version of all non-confidential submissions can be found on our consultation page.

As the second phase of public consultation, we released a draft Future Gas Strategy on 28 October 2022. 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, and we are currently considering this feedback in the context of finalising the strategy.

A summary of the feedback on the Draft Future Gas Strategy (PDF 820.9 KB) and the full version of all non-confidential submissions can be found on our consultation page.

We expect the final strategy to be released in the middle of 2023.

All non-confidential submissions will be published here shortly.

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 is available on our consultation page.