Get More Gas

No – we’re not running out of gas – we have hundreds of years of gas in the ground.

The real issue isn’t how much gas we have – it’s where it is, and when we need it.

Most of the demand, particularly during the winter months, is in the south – places like NSW and Victoria – especially in winter when everyone turns the heating on. But a lot of the newer gas supply that is being developed is up north in Queensland and the Northern Territory.

And there is only one major pipeline linking north to south and it is already full.

At the same time, the older southern gas fields that have powered the east coast for decades are starting to run down.

So it’s not a shortage of gas overall – it’s about getting the gas to where it’s needed and developing it close to the demand centres in New South Wales and Victoria.

No. Right now, most long-term deals sit around $13 – 15 per gigajoule according to the ACCC[1]. This pricing broadly reflects the cost of new supply on the east coast and providing a reasonable return.

The ACCC also acknowledged that prices below this level won’t trigger new gas investment.

Gas used to be cheaper because the most accessible resources – which were easier to reach -had already been found and developed. Now, new supply is harder to bring online and costs more.

It’s also worth stepping back and looking at the bigger picture.

Even with recent price pressure as a result of the conflict in the Middle East, Australia’s domestic gas prices are still well below what many countries pay internationally – particularly in Europe and parts of Asia, where prices have been far more volatile and significantly higher in recent years.

And importantly, Australian prices are not simply tracking global LNG prices.

They’re influenced much more by:

• Local supply costs
• Infrastructure constraints
• Domestic demand – particularly the significant fluctuations in the southern markets

But won’t more gas solve the problem? What about forcing the sale of gas into the market?

Of course, more gas will address the supply problem but it must be done through the commercial market, not the Government forcing producers to sell gas no matter the price or the demand. Forcing producers to sell gas into the Australian market, even below the cost of supply, might sound attractive but it would have real consequences.

• It could make a significant portion of gas resources uneconomic to develop
• That could reduce future supply and increase the risk of shortages leading to higher prices in the long term
• Companies could stop investing in new supply

The long-term answer is: we need more supply, in the right places – not less investment.

[1] Rystad Energy’s assessment of east coast production costs (published by the ACCC as Appendix D to its December 2025 interim report p.25 and p.26. 

No – Santos supplies both domestic and international markets as part of a balanced energy system.

And it’s not a case of either/or.

Australia’s gas industry was built using local and international investment to supply both:

• local customers, and
• long-term overseas buyers

Those export deals matter because they helped fund the big projects that brought a lot of gas supply online in the first place. Without that international investment, some of Australia’s gas fields would never have been built.

Santos’ view has been consistent:

• make sure Australians have access to gas
• honour the long-term contracts with our regional partners because it’s their investment that paved the way for many of the Australian gas projects
• Australian gas underpins regional energy security
• keep investment flowing so there’s enough supply in the future.

Since 2018, Santos has consistently supported a prospective domestic reservation approach – one that ensures Australians have access to gas, respects contracts and investments made, while still encouraging investment in new supply.

Let’s be clear: Australia does not have a gas shortage. Not today, and not for the rest of this decade.

The Australian Energy Market Operator, the ACCC and independent analysts all point to the same conclusion – the east coast market is adequately supplied into the early 2030s.

The real challenge is narrower and more specific: a winter peak-day squeeze in the southern states.

That squeeze isn’t driven by one thing – it’s a mix of issues that’s built up over time.

First, older gas fields are running down
The big southern fields have been producing for decades. They were always going to decline.

Second, not enough new supply has been developed on the East Coast, particularly in Victoria and New South Wales.
Even though we’ve known this was coming, new projects haven’t kept pace – especially in NSW and Victoria.

Third, demand spikes in winter
Gas use can jump two or three times higher on cold winter days in New South Wales and Victoria. Demand is broadly consistent in Queensland year-round.

And finally, moving gas isn’t simple
There’s limited pipeline capacity to move gas from Queensland down to the southern states when demand peaks.

So, what you get is a system that works most of the time – but can come under pressure during those big winter demand spikes.

The IEA’s latest data shows that the world has still not seen peak demand for any of coal, oil or gas. And renewables are also expanding rapidly.

In 2025, demand for every single energy source grew.

Oil, gas and coal, as well as nuclear at record output. Renewables at record deployment levels.

Yet, emissions remained at a record high.

The world did not swap one energy source for another – it took more of everything.

Australia has an extraordinary comparative advantage in energy that few countries can match.

Demand for oil and gas is not going away.

The only question is who supplies it.

Our focus is simple: bring more gas to market.

That means:

• Developing new gas fields
• Investing in infrastructure
• And getting supply closer to where it’s needed

Projects like Narrabri are a good example – they’re aimed at supplying gas directly into NSW, where demand is strongest and that project is 100 per cent committed to the domestic market.

For the past five years, the Santos operated Gladstone LNG plant in Queensland has invested over $1 billion per year to develop new supply, reduce export volumes to direct more gas into the local market, and shaped our exports to make sure Australia has the gas during periods like winter when it’s needed.

More broadly, Santos is also investing in the Northern Territory’s Beetaloo Basin and in potential projects like the Bedout Basin to ensure Australia has the oil and gas it needs, when it needs, and for future, long-term energy security that also helps to create a stable, secure and prosperous region.

The most reliable way to keep prices stable and supply secure is straightforward: you need more gas coming into the system.

Yes – and our numbers are public.

Santos publishes a Tax Transparency Report each year, so anyone can see exactly what’s paid.

For example:

• In 2024, Santos paid US1.013 billion in taxes, royalties and other taxes to governments in Australia and overseas
• This includes $US491 million to the Australian government – that’s equivalent to more than $A700 million.

That includes:

• Company tax (when profits are generated)
• Petroleum Resource Rent Tax (PRRT)
• State royalties and other taxes

It comes down to how these projects actually work.

Gas projects:

• Cost billions upfront to build
• Take years before they generate returns
• Carry forward those costs before profit is taxed

Corporate tax is only paid once a project is making taxable profit. That’s standard across every industry.

But importantly, taxes and royalties are still paid throughout the life of a project, not just when profits peak.

And the contribution goes well beyond tax
Santos also invests directly into communities:

• In 2025 Santos invested USD$28.7 million to support community activities, grassroots organisations, partnerships and events across the areas we operate
• Up to A$10 million each year through the Barossa Aboriginal Future Fund (BAFF) with its Barossa Joint Venture partners
• Ongoing funding through the Santos Foundation, supporting:
  • Education
  • Indigenous employment
  • Regional community programs
  • Health and wellbeing initiatives including vaccination programs, funding for Accident and Emergency Hospitals, and maternity clinics.

Find out more about the Santos Foundation and the Barossa Aboriginal Future Fund, our community partnerships and the other ways Santos is investing in a better future here.