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‘Sustainably Pursuing growth of natural gas

– the ‘transition fuel’
deliver energy for While the accelerated removal of coal-fired power

generation is occurring across many nations
communities’ including Australia, natural gas is emerging as the
widely accepted ‘transition fuel’ that achieves lower
emissions, while ensuring grid stability.

How Beach is responding to It is natural gas that enables renewables to become
the dominant source of energy generation in the
the transition to a low carbon longer term.

economy Whilst the share of primary energy provided by

total fossil fuels decreases from 2020 to 2050 in
Beach’s new Purpose statement reflects a sharpened all IPCC 1.5°C pathways, the trends for oil, gas and
2
focus on ensuring the company is proactive in coal differ. Oil use is reduced consistently across
responding to the challenges ahead, most notably, most of 1.5°C scenarios, however, natural gas use
that of climate change.
varies significantly depending on the success of
Beach is an oil and gas exploration and production the carbon capture and storage (CCS) technology.
company that has a proud history dating back nearly Even as renewables make up the majority of the
60 years – but it does not take its future for granted. share in electricity generation by 2050, natural gas
is predicted to play a crucial supporting role. Share
Beach is committed to thriving in a low carbon of fossil fuels (primarily natural gas) with CCS is
environment and will continue to evolve and adapt to modelled to increase in most 1.5°C pathways with no
the needs of an economy in transition. Beach accepts or limited temperature overshoot.
the science of climate change and recognises more
needs to be done to curb global emissions, including Beach’s expanded natural gas portfolio is a key part of
those from Beach’s own operations. Australia’s east and west coast domestic gas markets
as well as the New Zealand domestic market. Our
Importantly, it must do this in a way that also reflects campaign to ensure a continued pipeline of gas in
the interests of its shareholders. Beach is responding both markets will allow domestic gas to continue to
accordingly, most notably through a new target to cut thrive, while the nation’s economy transitions away
emissions by 25% by FY25. from coal toward more renewable energy.

Beach is committed to playing a role in helping
Australia and New Zealand meet their commitments Helping to meet the increase in global demand
under the Paris Agreement. Beach will be part of the The International Energy Agency’s World Energy
emissions reduction solution by: Outlook 2019 Report projects that world energy
consumption will grow by nearly 50% between 2018
3 Pursuing growth of natural gas - the transition fuel and 2050. Most of this demand comes from countries
3 Helping to meet the demand increase globally of strong economic growth, particularly in Asia.

3 Aligning with Australia’s energy ambitions The importance of natural gas in the global energy
3 Modelling against various climate and pricing mix to 2060 is recognised in three key International
scenarios Energy Agency (IEA) scenarios (Reference Technology
Scenario, 2 Degrees Scenario, Beyond 2 Degrees
3 Being part of an industry driven effort to lower Scenario) with natural gas demand forecast to grow
absolute emissions - including emissions intensity to 2030. Under the IEA’s Reference Technology

3
3 Being in-step with the Paris Agreement Scenario , global gas demand is projected to grow by
30% by 2030 and by almost 60% by 2060. In the 2°C
3 Taking tangible steps to cut our own emissions
Scenario, gas demand grows by 9% by 2030 and in
the Beyond 2°C Scenario, it increases by 6% by 2030.

2 The IPCC does not carry out its own research, and does not monitor climate or related phenomena itself. Rather, it assesses and references thousands
of published literature including the peer reviewed IEA reports. IPCC often also acknowledges the limitations and knowledge or research gaps within its reports.
3 IEA (2018), World Energy Outlook 2018, IEA, Paris https://www.iea.org/reports/world-energy-outlook-2018
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Beach Energy Sustainability Report l October 2020