How Australia's Gas Ban Ripples Will Resonate Across Four Continents: Bloomberg

Australia’s Victoria state bans natural gas connections to new properties, igniting global energy transition discussions, Bloomberg reports in an opinion piece by David Fickling.

The ban, proposed by Victoria’s left-wing state Premier Daniel Andrews, is seen as a step towards net-zero targets. It has sparked opposition from an industry lobby accusing the government of ignoring household needs. This comes amidst 2022’s global gas crisis, which saw onshore prices surge up to five times above normal levels.

Victoria, once Australia’s largest oil and gas producer, is facing a natural decline in offshore petroleum production. The joint venture of Exxon Mobil Corp. and Woodside Energy Group Ltd. is decommissioning its platforms, targeting 2027. The region, supplying about 40% of the country’s east-coast gas market, is running dry.

Fickling adds that similar debates will ensue in three other countries namely Netherlands, Pakistan and Mexico which are facing natural gas shortages.

The ban is seen as a way to address the looming shortage. Electric and induction cooktops and reverse-cycle air conditioners are not only less carbon-intensive but also cheaper, an advantage that will grow as the decline of the Bass Strait leaves the country dependent on costlier imported gas.

Image by Andrea Piacquadio on Pexels