Gas Facts

Gas in Australia generates $70.124 billion in economic activity - underpinning 3.4% of GDP.

The 2020-21 figures are subdues due to Covid impacts, but the report forecasts a strong rebound in 2021-22.

• ACIL Allen Consulting, Economic Contribution of the Australia Gas Economy in 2020-21, November 2022.

Australia's gas sector and its networks support 241,646 full-time local jobs.

• ACIL Allen Consulting, Economic Contribution of the Australia Gas Economy in 2020-21, November 2022.

Gas production makes up the lion's share of the economic contribution of the gas supply chain to national domestic activity at over $40 billion, while supporting 109,284 Aussie jobs.

• ACIL Allen Consulting, Economic Contribution of the Australia Gas Economy in 2020-21, November 2022.

The transport and distribution of gas across Australia drives $8.117 billion in economic activity and supports 36,508 Aussie jobs.

• ACIL Allen Consulting, Economic Contribution of the Australia Gas Economy in 2020-21, November 2022.

Gas-fired electricity generation in Australia provides $4,11 billion in economic activity, and supports 12,289 Aussie jobs. Importantly, as intermittent generating renewables (solar and wind) are more relied on as coal exists the market, gas will become increasingly relied upon to fill the inevitable downtime gaps.

• ACIL Allen Consulting, Economic Contribution of the Australia Gas Economy in 2020-21, November 2022.

Through high temperature manufacturing, gas contributes $5.14 billion in economic activity and support 24,205 Aussie jobs.

Gas is essential in generating industrial heat for manufacturing, including steel, glass, bricks, ceramics... to list a few. In this process it is irreplaceable given electricity cannot generate the 800-1,300 degree Celsius temperatures required.

• ACIL Allen Consulting, Economic Contribution of the Australia Gas Economy in 2020-21, November 2022.

As a feedstock (or ingredient) in modern manufacturing, gas generates $7.75 billion to economic activity and supports 33,074 Aussie jobs.

Gas is a vital and irreplaceable feedstock in the making of many things we need for everyday life, including plastics, fertilisers, pharmaeuticals, rubber, propellants, refrigeration, adhesives, cosmetics. A more detailed is available in the 'Gas Use in Australia' section below.

• ACIL Allen Consulting, Economic Contribution of the Australia Gas Economy in 2020-21, November 2022.

Gas-related capital expenditure, or the gas sector's investment in upgrading its operations, generates almost $5 billion in domestic economic activity, supporting 26,285Aussie jobs.

• ACIL Allen Consulting, Economic Contribution of the Australia Gas Economy in 2020-21, November 2022.

Some 130,000 businesses across Australia rely on gas for both industrial heat (to make steel, bricks, alumina, ceramics, etc) and as a feedstock (that is, as an ingredient in making plastics, chemicals, pharmaceuticals and fertilisers... to list just a few.

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

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 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.