September 20, 2022

Two billion dollars in gas subsidies should be scrapped 

350.org Australia and Lock the Gate are calling on the Albanese Government to cut Morrison’s gas subsidies in the October budget after new data revealed nearly $2 billion worth of projects supporting the gas industry was not formally committed

The Parliamentary Budget Office analysis of Morrison Government gas subsidy announcements shows that there is $1.9 billion in funds that were not formally committed from the 24 projects.

Shani Tager, Senior Campaigner at 350 says: “These Morrison gas subsidies must be scrapped in the October budget. There’s no justification to continue to give public money to companies that are damaging the climate while making eye watering profits.

“The Albanese Government has an opportunity to put an end to this wasteful spending and make sure that no further handouts are given to gas billionaires.”

Lock the Gate National Co-ordinator Ellen Roberts said, “Origin’s decision yesterday to withdraw from fracking projects in the Northern Territory is further evidence of the speculative and volatile nature of Australia’s gas industry. Gas companies are holding out their hands for subsidies for gas projects that will yield only a handful of jobs and damage water and land.”

Gas subsidies that have been spent include $7.5 million allocated to Tamboran Resources who are now buying out Origin Energy in the Beetaloo Basin. Tamboran is also facing a fine over failing to appear at a Senate Inquiry into gas subsidies.

“The Morrison gas subsidies are a legacy of public funds being poured into controversial and financially dubious projects. These latest figures expose Morrison’s ‘gas led recovery’ as a pipe dream. The era of gas rorts must end,” said Ms Roberts.

 

ENDS

 

Media contacts:

350.org Australia: Shani Tager, 0432 050 809

Lock the Gate Alliance: Dominic Geiger, 0447 355 565

 

Projects with uncommitted funds include:

  • $200 million for a petrochemical precinct in Middle Arm, Darwin, designed to prop up gas projects in the Barossa and Beetaloo Basin
  • $263.7 million for Carbon Capture and Storage projects which would directly benefit gas companies who use CCS to greenwash their emissions problem
  • $60 million for the Cooper and Adavale Basins which have gas with very high carbon dioxide content