30 October 2025

A state government 2025 SA Gas Initiative offers matched grant funding of up to 50% of expenditure on significant innovative gas projects – up to $2.5 million per eligible project – that help shore up gas supplies to long-term energy needs.

The initiative, which follows a successful negotiation with AGL to extend the operation of its Torrens Island Power Station ‘B’, will help provide additional ongoing supply and capacity in the longer term.

A newly established Gas Security Infrastructure Fund will allocate funding to stimulate investment in a range of projects that increase gas supply, increase gas capacity, or both. These could include projects that:

  • enhance geological knowledge of areas of potential gas supplies close to existing infrastructure
  • drive the adoption of new technologies to lift productivity and improve efficiency of gas production
  • gas storage solutions
  • support infrastructure to unlock new gas supply or improve deliverability.

Funding decisions will preference shovel-ready projects considered most likely to deliver new gas supplies by the end of 2028.

Grants of more than $2.5 million may be considered if the total project expenditure is greater than $5 million and applicants can demonstrate the project will have a greater expected outcome in meeting the state’s energy needs.

Applicants will be required to clearly state how South Australian gas users will directly benefit from the projects they propose for grant funding, including how projects will help to address potential gas supply shortfalls, how they will support lower energy prices and how they can contribute to greenhouse gas reduction targets.

Application criteria have been designed to ensure the grants only contribute to direct project costs and apply only to costs incurred in the project period.

The call for grant applications is part of a suite of state government initiatives designed to ensure reliable long-term energy supplies. It comes just days after a request to the private sector for tenders to provide long duration dispatchable capacity under the state’s Firm Energy Reliability Mechanism. In May this year, the government also opened applications for exploration licences that could yield new or expanded gas discoveries.

Applications close 4:00 pm Friday 28 November 2025.