The Australian Competition and Consumer Commission (ACCC) has urged Commonwealth and state governments to “reduce regulatory barriers” to investment in new gas supply and explicitly recognise the critical long-term role of gas in Australia’s energy transition.

While the nation’s southern states might need to import gas to meet demand beyond the short term, any importation of gas would not obviate the need to continue domestic gas production, according to the commission.

The ACCC’s latest quarterly report on Australia’s east coast gas market confirms the gas industry continues to provide reliable and affordable energy for Australian homes and businesses, estimating a surplus across the east coast over 2025 and 2026.

However, it warns the populous states of New South Wales (NSW) and Victoria face peak-period shortfalls this [southern hemisphere] winter and structural shortfalls across the east coast by 2027 if new gas projects are not developed.

Ensuring the continued domestic supply of gas will be important to limit risks to energy security on the east coast and market stability associated with reliance on international liquefied natural gas markets, noted the commission in its latest report, which was released on 10 January.