It’s an exciting time to be in the energy sector, and there is, perhaps, no better place for the private sector to be in Australia right now, than in Queensland.

In April, Queensland Treasurer David Janetzki made it clear that private sector investment needs to underpin Queensland’s future energy system. And since then, the Queensland Government has started to do the necessary groundwork to ensure Queensland is ready and open for business.

Government-owned corporations like Powerlink, CS Energy, CleanCo and Stanwell have been leading the way — showing what’s possible when the public and private sectors work together, in partnership, to deliver energy solutions that are bold and forward-looking.

APA welcomes this commitment and, as Australia’s largest energy infrastructure company, we stand ready to leverage our diverse assets and market-leading capabilities, to help deliver on this vision for the future.

Queensland gas is vital to the East Coast 

As Australia’s energy transition slowly progresses, Queensland, increasingly, has a critical role to play in east coast energy security and gas supply. Queensland is home to over 90 per cent of Australia’s current 2P gas reserves, meaning the Sunshine State will be the engine room of east coast gas supply.

It’s never been more important to get domestic gas from the northern basins to southern consumers.

New gas supplies from the Bass Strait in the short-term, coupled with the delivery of new projects in northern gas basins such as the Surat here in Queensland and in the Beetaloo in the Northern Territory, will ensure Australian gas is available to power our economy and keep key Australian industries alive, up to and beyond the 2050s.

Not only can Australia’s domestic gas industry comfortably meet domestic demand requirements - it can also support a thriving LNG export market, delivering significant economic benefits to Australia, and supporting our global trade partners with their own energy transitions, for decades to come. 

Building on the gas sector’s social licence 

For the gas sector, it will be critical to get the balance right — between ensuring reliable and affordable Australian gas supply is available for domestic users — and at the same time, ensuring we have a strong LNG export market.

The gas sector won’t maintain public and political support to expand and grow, unless we can deliver reliable and affordable gas to support Australian consumers and business. Reliable and affordable gas is central to a strong economy. Queensland has reliable and affordable gas.

In contrast, if we have to, say, import LNG to Australia’s east coast, which is a bizarre proposition for a country so flush with gas, we will see significantly higher domestic gas prices, and subject our supply chains to energy security risks.

This will erode the trust and reputation of the domestic gas sector among government and consumers.

APA has been an active voice in the debate about the potential impacts of LNG imports. We’ve been active because we strongly believe importing gas will have a detrimental effect on Australia’s energy security and our economy.

The role of governments in this equation is simple – we need government to take a considered, longer-term approach to domestic gas policy, and ensure policy and regulatory frameworks are stable and predictable. And we need to be able to move now. We need policy that supports the needs of both our domestic economy and recognises that most of these gas fields can’t produce at the scale needed to keep domestic prices low, without the ability to also export LNG to global markets. 

Investing in transport infrastructure 

Growing global demand for natural gas is driving the need to develop new gas fields and increase capacity on our East Coast Gas Grid. 

This strong demand has given APA the confidence to announce our East Coast Gas Grid expansion plan – to increase north to south transport capacity by about 25 per cent – as well as the delivery of new southern markets storage, to support the growing demand for gas powered generation.

With the support of our customers, we’re proposing to add capacity every year, for five years – building on our long track record of investing and increasing capacity in the grid. 

And this expansion of course means that Queensland gas will be critical to meet gas demand up and down the east coast.

In short, APA can deliver the required transport and storage infrastructure along the East Coast to meet demand, and ongoing investment in Queensland gas fields will be key to this.  

Queensland is well positioned for new gas-powered generation 

Future Australian gas demand is robust, up to and beyond 2050, and this has been strengthened by the role gas-powered generation, or GPG, is expected to play to maintain security of supply for our electricity system.   

GPG’s main role will be to complement renewables as we replace our coal fired power generators. We’re seeing forecasts for new GPG of anywhere between 13 to 20 gigawatts being required over the next decade, to support our East Coast electricity system, or the NEM.

As more renewable generation comes online, we’ll need more gas-powered generation to step in when the sun doesn’t shine, and the wind doesn’t blow.

Queensland is well positioned to lead the next wave of gas-powered generation projects, providing the energy we need to firm renewables and support the transition away from coal.  

Strong partnerships between government and private sector operators such as APA, will be critical to a successful energy transition. We remain confident that the Queensland Government is getting the balance right, attracting the necessary expertise and investment to deliver what’s needed.

This piece is an excerpt from Adam Watson’s address to the Queensland Energy Club on 29 May 2025