PM announces $1 billion energy deal with SA

$1 billion energy deal Scott Morrison gas prices
Prime Minister Scott Morrison. Image: Naresh777 / Shutterstock.com

The Morrison Government has announced a $1 billion energy deal with South Australia with the aim of delivering more affordable and reliable power to South Australians, start work on a new interconnector between SA and NSW, and “unlock gas supplies”.

It would also provide funding for hydrogen and emissions reductions projects.

Speaking at a press conference in the Clare Valley on Sunday, April 18, Mr Morrison told reporters his government was doing everything it can to get South Australians cheaper, more reliable energy, but “importantly also low emissions for the future.”

“[That goes for] both here in South Australia and more broadly backing in the incredible technology that Australia is and will continue to lead the world in,” Mr Morrison said.

“This is a smart state. Lower cost, affordable, reliable energy with lower emissions-that is what is necessary to drive this state forward and Australia forward.”

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The South Australian agreement stipulates a gas target of an additional 50 petajoules a year by the end of 2023, plus a target of 80 petajoules a year by 2030.

Energy Minister Angus Taylor said the focus on gas will help South Australia meet its own gas needs and assist efforts to prevent forecast shortfalls in the broader east coast gas market from 2023, as part of the government’s ‘gas-fired recovery’.

This gas-fired recovery has been criticised by industry and the media, with a Four Corners expose airing just a week prior to the announcement.

The Climate Council has also stated the gas aspect of the $1 billion energy deal is “nonsensical”.

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