Gas Initiative Grant Scheme to stimulate investment in South Australian projects
Media Release Date: 30 October 2025
SACOME welcomes the South Australian Government’s establishment of a $17.5 million SA Gas Initiative Grant Scheme to accelerate investment in natural gas projects in South Australia.
The state government is calling for project proposals by 28 November with the announcement of the establishment a Gas Security Infrastructure Fund to deliver the 2025 SA Gas Initiative Grant Scheme.
The Fund is intended to support projects, studies and activities that enhance energy resources industry projects that will assist with meeting South Australia’s mid to long-term energy needs.
In their 2025 Gas Statement of Opportunities, the Australian Energy Market Operator (AEMO) forecast risks of a peak day gas shortfall from 2028, and structural supply gaps emerging from 2029 in South Australia.
The intended outcome of the 2025 SA Gas Initiative is that significant projects benefitting from the scheme can assist in meeting these gas supply shortfalls predicted to impact South Australia from 2028.
The initiative will allocate funding for up to 50% of total eligible project expenditure, up to $2.5 million* per project, through targeted competitive grants to stimulate investment in a range of projects that increase natural gas supply or capacity to South Australian consumers by the end of 2028.
SACOME’s advocacy has emphasised the importance of ‘energy competitiveness’, recognising that South Australia continues to have among the highest average electricity costs in the nation.
In the lead up to the 2026 State Election, as part of a Resources Sector Roadmap, Energy Reliability and Affordability is of paramount importance to the growth of the resources sector.
The development of existing and new gas supply has been put forward as a focus priority for SACOME members, particularly recognising its importance as an input to electricity generation, firming, smelting and manufacturing.
An industry briefing webinar will be held by the Department of Energy & Mines on 6 November, with grant applications closing at 4pm on Friday 28 November 2025.
Further information can be found on the Department for Energy & Mining website.
* A higher grant amount may be considered if the total eligible project expenditure is greater than $5 million, and the applicant can demonstrate a greater expected outcome in meeting South Australia’s mid to long-term energy needs.
Quotes attributable to SACOME Chief Executive Officer, Nicola McFarlane
“Energy reliability and affordability is a first-order priority for SACOME and our members. In the lead up to the 2026 State Election, bringing new gas supply online is seen as critical to support our energy security in South Australia.”
“Ensuring energy competitiveness remains a key issue for SACOME’s members. The government’s establishment of the Gas Security Infrastructure Fund is a welcomed initiative that works towards stimulating investment in projects to help to address gas supply and capacity needs in the state.”
SACOME welcomes the South Australian Government’s establishment of a $17.5 million SA Gas Initiative Grant Scheme to accelerate investment in natural gas projects in South Australia.
The state government is calling for project proposals by 28 November with the announcement of the establishment a Gas Security Infrastructure Fund to deliver the 2025 SA Gas Initiative Grant Scheme.
The Fund is intended to support projects, studies and activities that enhance energy resources industry projects that will assist with meeting South Australia’s mid to long-term energy needs.
In their 2025 Gas Statement of Opportunities, the Australian Energy Market Operator (AEMO) forecast risks of a peak day gas shortfall from 2028, and structural supply gaps emerging from 2029 in South Australia.
The intended outcome of the 2025 SA Gas Initiative is that significant projects benefitting from the scheme can assist in meeting these gas supply shortfalls predicted to impact South Australia from 2028.
The initiative will allocate funding for up to 50% of total eligible project expenditure, up to $2.5 million* per project, through targeted competitive grants to stimulate investment in a range of projects that increase natural gas supply or capacity to South Australian consumers by the end of 2028.
SACOME’s advocacy has emphasised the importance of ‘energy competitiveness’, recognising that South Australia continues to have among the highest average electricity costs in the nation.
In the lead up to the 2026 State Election, as part of a Resources Sector Roadmap, Energy Reliability and Affordability is of paramount importance to the growth of the resources sector.
The development of existing and new gas supply has been put forward as a focus priority for SACOME members, particularly recognising its importance as an input to electricity generation, firming, smelting and manufacturing.
An industry briefing webinar will be held by the Department of Energy & Mines on 6 November, with grant applications closing at 4pm on Friday 28 November 2025.
Further information can be found on the Department for Energy & Mining website.
* A higher grant amount may be considered if the total eligible project expenditure is greater than $5 million, and the applicant can demonstrate a greater expected outcome in meeting South Australia’s mid to long-term energy needs.
Quotes attributable to SACOME Chief Executive Officer, Nicola McFarlane
“Energy reliability and affordability is a first-order priority for SACOME and our members. In the lead up to the 2026 State Election, bringing new gas supply online is seen as critical to support our energy security in South Australia.”
“Ensuring energy competitiveness remains a key issue for SACOME’s members. The government’s establishment of the Gas Security Infrastructure Fund is a welcomed initiative that works towards stimulating investment in projects to help to address gas supply and capacity needs in the state.”