Gas Facts

Australian gas drives $196 billion in economic activity through the Australian economy each year - some 15% of GDP.

• Deloitte Access Economics analysis of Australian Bureau of Statistics data, March 2017.

Our domestic gas sector and its networks support 949,000* Australian jobs, in addition to some 24,000** contractor businesses and over 2,200 apprentices each year.

• *Deloitte Access Economics analysis of Australian Bureau of Statistics data, March 2017.
  **AEAS, Economic and Employment Contribution of the Australian Gas Industry Supply Chain, 2020-21.

Some 130,000 businesses across Australia rely on local gas for both energy production and as a feedstock - that is, it is an essential ingredient for making plastics, chemicals and fertiliser vital in everyday life.

• Deloitte Access Economics analysis of Australian Bureau of Statistics data, March 2017.

The value-add of Australian gas as a feedstock for the Australian chemistry sector was up to $145.5 million in 2017-18, generating 48,500 jobs specifically in the chemicals sector...

• ACIL Allen Consulting, Chemical Industry Economic Contribution Analysis, Table ES 5, Chemistry Australia, July 2019.

The total contribution of the chemical industry for every petajoule of gas use in 2017-18 was $286 million, illustrating that the chemistry sector has a significant value added gas use across the Australian economy...

• ACIL Allen Consulting, Chemical Industry Economic Contribution Analysis, Table ES 5, Chemistry Australia, July 2019.

Gas generates $47 billion in export revenue for Australia and is cleaner than the prevailing oil-based alternatives by some 25%.

• Frontier Economics, Gas Vision 2050: Delivering A Clean Energy Future, September 2020.

Taxes, rates, fees and royalties from Australian gas yield $18.2 billion a year, supporting essentials services and infrastructure, such as hospitals, schools and roads across the country.

• AEAS, Economic and Employment Contribution of the Australian Gas Industry Supply Chain, 2020-21.

Almost 70% of Australian homes use mains or bottled gas for heating, cooking and hot water - that's 5.2 million households and growing by 100,000 per year.

• Frontier Economics, Gas Vision 2050: Delivering A Clean Energy Future, September 2020.

Overall, it is estimated that there are over 18 million residential gas appliances in use across Australia.

• Frontier Economics, Gas Vision 2050: Delivering A Clean Energy Future, September 2020.

Natural gas provides 44% of household energy, but produces just 13% of household greenhouse gas emissions.

• Deloitte Access Economics analysis of Australian Bureau of Statistics data, March 2017.

Around 2 million Australian homes use LPG indoors, which is supplied through virtual pipelines.

• Frontier Economics, Gas Vision 2050: Delivering A Clean Energy Future, September 2020.

GEA members supply more than 1.15 million Australian customers - businesses and households - excluding recreational and autogas customers.

• Australian Bureau of Statistics, Energy Use and Conservation, March 2014.
  Australian Bureau of Statistics, Household and Family Projects, Australia 2011-2036.

Over 1 million households in regional areas of Australia use LPG in their homes, with more than 800,000 being utilised in capital cities.

• Gas Energy Australia, The Australian LPG Industry, September 2017.

Australia's gas infrastructure can store the same amount of energy as 6 billion Tesla Powerwall batteries.

• Deloitte Access Economics analysis of Australian Bureau of Statistics data, March 2017.

Gas provides around one-quarter (23%) of Australia's end-use energy consumption and, even by today's standards, is cleaner and more efficient in generating higher levels of renewable electricity.

• Frontier Economics, Gas Vision 2050: Delivering A Clean Energy Future, September 2020.

Most people know gas is used for heating in manufacturing. Only gas can achieve the extreme temperatures necessary for thermal energy used directly in the preparation or treatment of materials to produce manufactured goods. Electrification, regardless of its source, cannot achieve the very high temperatures, including over 1,300 degrees Celcius, demanded by modern industrial processes.

• Frontier Economics, Gas Vision 2050: Delivering A Clean Energy Future, September 2020.

It is little understood, but gas is a required feedstock (or ingredient) in making many of the things we take for granted, including:

• Plastics for mobile phones, toys, detergent bottles, milk bottles, eyewear, solar panels, wind turbines, life jackets, bandages, tents, shrink film, etc.
• Rubber, including for car tyres.
• Medical equipment, dental hygiene products.
• Pharmaceuticals.
• Propellants.
• Cosmetics.
• Agriculture, most notably fertilisers to increase crop yields, as well as pesticides, herbicides and a wide variety of farm chemicals, including in animal feed.
• Agricultural piping for irrigation and water storage.
• Packaging.
• Transport, especially heavy vehicles.
• Adhesives.
• Industrial piping for mining, commercial and housing - water, gas and other reticulation.
• Insect repellant.
• Artificial limbs.
• Musical equipment.
• Refrigeration for food storage.
• Anti-freeze for cars.
• Mechanical and auto-parts.
• White goods - appliances and electronics.
• Glass.
• Explosives.
• Soft drinks.
• Building products, medium density fibre board, particle board, insulation, flooring, siding and laminates.
• Water treatment for waste waters and sewage.
• Cleaning products, solvents, detergents, fabric softener, windshield cleaner and paint remover.
• Paper.
• Mining.
• Signage, glazing, lighting fixtures and surface coatings.
• Clothing and textiles, bedding and furniture, polyester, carpets and rugs.
• Hospitality - gas cooking for restaurants, cafes, bars and clubs, as well as outdoor heating.
• Entertaining - BBQs, outdoor heating, caravans and camping.

While by no means exhaustive, the list above demonstrates that gas is an essential component in providing the things that not only maker life enjoyable, but are vital for modern living.

• ACIL Allen Consulting, Chemical Industry Economic Contribution Analysis, Chemistry Australia, July 2019 and Energy Information Australia, 2021.

Overall, natural gas accounts for around 35% of energy consumption in Australian manufacturing. Gas energy is particularly important for certain industrial sectors and processes, in particular:

• For the production of high-temperature heat;
• For the generation of a flame, where industrial processes require direct exposure to flames;
• As a chemical feedstock (i.e. as an ingredient in the making of many products).

• DNV Australia, National Gas Decarbonisation Plan: Decarbonising Australia's Gas Pipelines and Networks, July 2021.

Over 18.1* million gas and LPG appliances, including barbeques, are in use across Australia, with more than 20 million** gas cylinders in circulation at any given time.

• *Frontier Economics, Gas Vision 2050, September 2020.
  **GEA Member data 2022.

Gas infrastructure in Australia, traversing more than 40,000* kilometers of pipeline, as well as a network of over 20 million** cylinders plus tankers, delivers more energy in Australia than electricity. This existing network means cheaper gas, including renewable, net zero gases - for households and businesses.

• *Frontier Economics, Gas Vision 2050: Delivering A Clean Energy Future, September 2020.
  **GEA Member data 2022.

Victoria is the largest user of gas in Australia, with 79% of homes using gas for cooking and heating to keep warm in winter.

• Frontier Economics, Gas Vision 2050: Delivering A Clean Energy Future, September 2020.

Research from Frontier Economics shows that replacing gas appliances in the home in Victoria will cost between $21,500 and $42,000 per dwelling.

• Frontier Economics, Cost of switching from gas to electric appliances in the home, 8 July 2022.

Victorians would have to save between $1,600 and $4,000 a year on their electricity bills to cover the cost of electrifying free-standing homes. This is a far cry from the Victorian Government's estimate of $1,025 to $1,250.

• Frontier Economics, Cost of switching from gas to electric appliances in the home, 8 July 2022.

By contrast, Victorians could save between $7,500 and $15,000 by retrofitting renewable gas ready appliances, rather than converting to electric appliances.

• Frontier Economics, Cost of switching from gas to electric appliances in the home, 8 July 2022.

The Australian gas industry invests $180 million annually in future fuels research projects, including Hydrogen and a raft of emerging renewable and net zero technologies.

• Frontier Economics, Gas Vision 2050: Delivering A Clean Energy Future, September 2020.

This plan is designed to deliver the three objectives that are needed to meet the overall net zero aim described in the Gas Vision 2050:

1. Enable blending of up to 10% by volume of renewable and decarbonised gases by 2030.

2. Enable 100% renewable and decarbonised gas supply to new residential developments before 2030.

3. De-risk a full network conversion to 100% renewable and decarbonised gases by 2050.

This work is actively underway.

• DNV Australia, National Gas Decarbonisation Plan: Decarbonising Australia's Gas Pipelines and Networks, July 2021.