Read Time: 4 mins
Background
This page is about gas.
Electricity in industry is already covered on the electricity page. The issue here is the part of industry that electricity does not easily replace: gas for process heat, gas for continuous operation, and gas as feedstock.
Official figures show gas still matters. In 2022–23, gas made up about 37% of manufacturing final energy use, and manufacturing accounted for about 25% of Australian domestic gas use when on-site generation is included. The Commonwealth also says about 17% of Australian industrial gas use, or 65 PJ, is used as chemical feedstock.
That is the reality.
Gas is not optional for large parts of industry.
Links to Sections
Gas Is Not Optional
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Gas is not a side issue in industry.
It delivers high heat, steady heat, and in some industries the gas molecule itself is part of the manufacturing process.
The Commonwealth says about 17% of Australian industrial gas use, or 65 PJ, is used as chemical feedstock. That means some businesses do not just burn gas. They turn it into products such as fertilisers, plastics, packaging, tyres, detergents, adhesives and medical products.
For a large part of Australian industry, gas is not optional.
Gas for Australia First
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Australia should use its gas to keep Australian industry operating first.
Exports matter. But a country that exports gas while starving its own manufacturers of affordable supply has its priorities backwards.
The proper order is simple:
- keep Australian industry supplied,
- keep domestic prices workable,
- protect strategic industries,
- export the surplus after that.
That is the national interest.
Australian gas should serve Australian industry first. Exports should come after domestic industrial needs are securely and affordably met.
If gas is still the cheapest dependable fuel for an industrial process, government should keep it available and affordable until a genuinely better replacement exists.
Protecting access means avoiding policies that:
- restrict new gas development when industry still needs supply,
- block pipelines, storage or other delivery infrastructure,
- force users off gas before a workable cheaper substitute exists,
- impose policy costs that make local industry less competitive, or
- allow domestic users to face avoidable shortages or price spikes.
Victoria Is the Warning
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Victoria is the warning sign. AEMO said in March 2026 that annual gas production in Victoria is forecast to fall 52.8% by 2030, and daily supply capacity is forecast to fall 35.2% by 2030.
That means tightening supply in a state where parts of industry still depend on gas.
The likely result is obvious:
- higher prices,
- weaker confidence,
- less investment,
- more pressure on manufacturers,
- greater risk of industrial decline.
In plain English:
An industry strategy that assumes gas can disappear while gas supply is tightening is not a strategy at all.
What CSA Supports
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1. Put Australian industry first
Australian gas should not leave local manufacturers short of supply or priced out of operation.
2. Expand domestic gas supply
If industry still needs gas, supply must be developed, transported and stored accordingly.
3. Protect gas for genuine industrial use
Fertiliser, chemicals, food processing, refining and manufacturing are productive uses that matter to national resilience.
4. Stop policy-driven scarcity
Do not create shortages by blocking supply, discouraging investment, or restricting delivery infrastructure before a real substitute exists (Victoria).
5. Export after domestic needs are met
Exports are important, but domestic industry should not come second in its own country.
Bottom Line
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This page is about gas.
Electricity in industry is covered on the electricity page.
The question here is simple:
Will Australia keep enough affordable gas for its own industries, or will it price and regulate them into decline?
CSA’s answer should be blunt:
Gas for Australia first. Industry first. Exports after that. Keep domestic gas available, affordable and reliable for the industries that still depend on it.
Sources
AEMO, 2026 Victorian Gas Planning Report Update / 2026 GSOO media release Goes Here
Australian Energy Statistics – Update Report 2025
Australian Government, Future Gas Strategy
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