Gas producers are pushing the Albanese Government to let fossil fuels play a bigger role in Australia's energy transition, as they celebrate last week's conditional approval to extend the North West Shelf project in Western Australia.

The industry was buoyed by the move, which came alongside warnings from the Prime Minister that "warm thoughts" alone won't get Australia to net-zero emissions by 2050. 

Analysts say the government will face a number of key decisions in the coming months as it balances the need to meet demand, reduce emissions, and keep prices down.

• Guest: Tony Wood, Grattan Energy Program Director
• Producer: Max Chalmers