Victoria stands to lose current and future manufacturing investments in the face of gas shortages and price hikes, GMC members told the Victorian Government last week.
At an in-person meeting with Energy Minister Lily D’Ambrosio’s Adviser, Matthew Butera, large gas user manufacturers said they had millions of dollars of planned investments on hold due to what is fast becoming an energy crisis. One company said it was proposing plant expansions worth $30 million, while another was looking at options overseas and interstate.
Mr Butera emphasised the Victorian Government was working on “every possible” option to expand supply of gas ahead of what AEMO expects will be structural gas shortfalls by 2028
Federal and State Energy Ministers, meeting also on Friday, released a communique that foreshadowed potential to expand AEMO’s powers to address gas supply shortfalls.
The large gas users meeting, held at GMC Industry Sponsor, CBA, in Geelong, followed a GMC submission to the government’s Gas Substitution Roadmap.
GMC has urged the Victorian Government to withdraw its current proposal and called for a balanced energy transition strategy that ensures energy security and energy advantage for Victoria, protects jobs, and supports Victorian businesses.
“Victorian manufacturers are producing the highest-quality materials and goods under world-class conditions and providing safe and meaningful work for Victorians,” the submission says.
“The rising cost of energy has meant many Victorian industries have become uncompetitive against cheap overseas imports – where fossil fuels continue to be used extensively to produce steel, glass and other basic requirements of a modern society.”