Australia gas policy review faces conflict scrutiny over ACIL Allen advisory work

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Australia gas policy conflict review

Highlights

Climate Integrity found ACIL Allen failed to disclose concurrent paid advisory work for gas industry groups while advising the Australian government in 2023 and 2024.
ACIL Allen was paid over $350,000 for two government reports on east coast gas market reforms and Australia's Future Gas Strategy, without declaring conflicts of interest.
The Future Gas Strategy, released by Resources Minister Madeleine King in 2024, committed to gas use beyond 2050 but faced internal Labor criticism and credibility concerns over undisclosed conflicts.

Overlapping advisory roles in 2023 and 2024

As reported by ABC News, an investigation by advocacy group Climate Integrity found that ACIL Allen did not disclose to the energy department that it was also undertaking paid work for Gas Energy Australia, the Australian Pipelines and Gas Association and the Business Council of Australia while preparing gas-related advice for the federal government.

According to documents obtained under freedom of information laws and tender records cited in the investigation, ACIL Allen was commissioned in late 2023 to assess proposed reforms to the east coast gas market while simultaneously producing industry reports on the economic benefits of gas and its role in Australia's transition to net zero emissions by 2050.

Months later, the consultancy was hired again to provide advice on Australia's gas needs for the government's Future Gas Strategy. Internal departmental emails released under FOI show officials saw the work as informing views on energy security, alternative firming sources and whether government action was needed.

The energy department confirmed to ABC News that ACIL Allen did not declare any conflicts of interest in the procurement process. Commonwealth procurement guidelines state that a conflict can arise where a contractor has competing duties that could affect its work, while the government's supplier code of conduct requires suppliers to declare and manage such conflicts.

Policy and governance implications for Australia

The Future Gas Strategy, delivered by Resources Minister Madeleine King in 2024, concluded that natural gas is needed through to 2050 and beyond and committed to expanding Australia's gas investment. That position triggered opposition within Labor ranks at the time, with several MPs saying they had been blindsided by the policy's emphasis on expanding gas use beyond 2050.

Climate Integrity executive director Claire Snyder said the gas industry's financial interest in the strategy created a clear conflict that should have been disclosed. She also argued ACIL Allen's wider body of work during the period overstated the cost of zero-emissions alternatives to gas and omitted the climate cost of developing new gas supplies, which she said advantaged the case for gas.

Greens deputy leader Steph Hodgins-May said the non-disclosure undermines the credibility of the Future Gas Strategy and warrants an explanation from both the government and the department. The ABC said ACIL Allen did not respond to questions, including queries about what steps it took to manage any conflicts, and a company representative declined to comment by phone.

The combined value of ACIL Allen's work for the government across the two reports was more than $350,000. The firm employs about 60 consultants and regularly advises government and industry clients across energy, resources, transport, infrastructure and public policy.

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