Instability in the Middle East has underscored the vulnerability of global energy markets and supply chains and reinforced the need to double down on domestic capability and infrastructure to help insulate the Australian economy from these types of events. 

Australia is one of the most fortunate nations globally, with a natural energy advantage, however we have not always translated this good fortune into good design.

Now is the time to tap into Australia's abundant gas supplies and, on the east coast in particular, to deliver the infrastructure to move it to southern states where much of it is needed.  This will ensure that future generations of Australians benefit from secure, reliable and affordable gas and electricity supplies as we progressively decarbonise our economy and support our regional neighbours efforts to decarbonise energy supplies through Australia's strong LNG export market. 

In February APA announced progression of Stage 3 of our East Coast Gas Grid Expansion Plan. The plan is simple – to move more gas from readily available supply sources in northern Australian basins to where it's needed most in southern markets. 

Incremental investment in existing pipeline infrastructure is a logical, proven and efficient solution to meet domestic gas needs. AEMO's 2025 Gas Statement of Opportunities clearly states that expansion of existing pipelines, along with unlocking northern supply, would meet forecast gas needs well out into the 2030s without an LNG import terminal.

And, it's clear from the data that when compared to LNG imports, APA's expansion projects are the most reliable, cost-efficient and lower emissions solution to get Australian gas to where it's needed.

Our February announcement committed approximately $500 million to progress projects that will ensure pipeline capacity is not a constraint to addressing projected southern market gas shortfalls later this decade. 

A final investment decision has been reached for Stage 3A, with investment of $260 million to increase north to south capacity through compression infrastructure that will supply essential Australian gas to southern markets from winter 2028.

Additionally, $220 million is being invested in Stage 3B to enable continued early works and procurement of long lead items for the Bulloo Interlink pipeline – which connects the South West Queensland Pipeline to the Moomba to Sydney Pipeline, ensuring northern gas supplies reach southern markets. This includes the purchase of 342km of line pipe and further pre-FID works to deliver additional capacity beyond winter 2028. 

When complete, APA will have added more than 50% north to south capacity to the East Coast Gas Grid over the past 5 years, having already increased capacity by approximately 25% via the successful delivery of Expansion Stages 1 and 2. These completed stages have been well supported by customers and have delivered essential capacity to meet demand, particularly in peak winter periods. 

Announcement of Stage 3 allows APA to get ahead of emerging demand for new capacity over the years ahead. We know that gas will continue to play a critical role in our economy for the long-term and we know that Australian gas for Australians first is a central principle of the Federal Government's recently released Gas Market Review Report. 

While consultation on design of an east coast reservation is still ongoing, the report has sent all the right signals for continued investment in domestic gas infrastructure. 

The report recognises the critical role that gas plays in our economy, building on the Government's 2024 Future Gas Strategy. It also recognises that ensuring there is enough gas for Australia's energy security is central to maintaining social licence for a strong ongoing LNG export market.

Our customers understand this and we continue to have positive discussions on contracting for this new capacity.   

There is no question that between Queensland and the Northern Territory there is enough gas in the ground to support both the domestic market and regional LNG customers for decades to come. In the short-term, there is available supply in the Cooper, Bowen and Surat Basins, with emerging basins, such as the Beetaloo Basin in the Northern Territory capable of underpinning Australia's long-term energy security and prosperity. This is in addition the encouraging work we are seeing by gas explorers in southern basins.

We're confident that if the right decisions are made, the domestic gas market can get back to doing what it does best for the long-term - powering Australian homes and driving Australian industry.