PERTH, March 26 (Reuters) - Expectations of a

long-feared gas shortage on Australia's east coast have been

pushed out by a year to 2030, due to coal power extensions,

declining consumption and fast battery uptake, the country's

energy market operator said on Thursday.

"Practical action is making a difference. More renewables,

more batteries and sensible gas policy are improving energy

security and putting Australia in a stronger position," Minister

for Climate Change and Energy Chris Bowen said in a statement.

In December the federal government told Queensland liquefied

natural gas exporters to reserve up to 25% of their gas for

domestic use from 2027, citing tight supply.

The state is home to three LNG export consortia led by

Santos, Shell and ConocoPhillips ( COP ). They

have been blamed by large-scale gas users and the competition

watchdog for taking gas from the domestic market, and the

government is expected to finalise a gas policy addressing those

concerns later this year.

"Existing, committed and anticipated production from

Queensland is projected to increase due to improved forecast

supplies from liquefied natural gas (LNG) producers," the report

from the Australian Energy Market Operator (AEMO) said on

Thursday.

It noted a new pipeline being built by APA Group ( APAJF ) to

send gas from Queensland south as new projects come online. APA

and industry group Australian Energy Producers welcomed the

report but the latter said governments must continue to

encourage new supply and not impose new, potentially onerous

taxes.

"While the gas supply outlook has slightly improved, it

remains important that committed and anticipated gas production,

storage and pipeline projects are completed on time," AEMO

executive general manager of system design Nicola Falcon said.

Gas use for power fell to a two-decade low, according to an

earlier report, but in some states is still used for heating and

big industry.

Soaring gas prices in Europe and Asia since the beginning of

the U.S.-Israeli war with Iran, which has disrupted gas

supplies, have not hit Australian east coast domestic gas

prices. The market operator did not model any events from the

Middle East in its outlook.

AEMO cautioned that should some appraisal and exploration

underway not come online its current supply outlook could be

revised down.