"Perfect storm": The Minister of Energy is issuing a threatening warning about gas as prices rise

“Perfect storm”: The Minister of Energy is issuing a threatening warning about gas as prices rise

The new energy minister has warned that Australia is on the brink of a gas crisis and the problem will not be resolved quickly.

On his first day as Secretary of Climate and Energy, Chris Bowen left all options on the table to curb rising gas and electricity costs, including a controversial “gas starter” for requisitioning gas supplies for export.

“Action is needed and action is being taken,” he promised gas users at his first press conference.

The Australian energy market operator has activated the Gas Supply Guarantee, which will allow the gas industry to work with the regulator to meet peak gas demand.

This is followed by the introduction of a $ 40 per gigajoule cap in some countries following soaring wholesale prices.

Mr Bowen noted that the decision to squeeze the gas rests with the Minister for Resources, but if that were the case, it would not have an immediate impact and downplayed proposals that could be used to resolve the crisis.

The current winter in South East Australia and the collapse of the gas supplier last week have caused the spot price of gas to rise sharply.

Prices were already high due to growing international demand as nations around the world shut down Russian gas and coal.

Problems with some coal stations in Australia have also contributed to the pressure on domestic gas prices.

“Australian energy markets are facing a perfect storm,” Mr Bowen said.

“In connection with the very serious and demanding situation in the supply of electricity, and especially gas, a number of factors play a role.

The “gas starter” will not come into force until next year

The federal government has the power to force exporters to hold more onshore gas for domestic use, under the Australian Home Gas Safety Mechanism (ADGSM), known as the gas trigger.

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