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Budget gas measures welcome

time-to-focus-on-hard-issues-in-gas-supplyThe Australian Pipelines and Gas Association welcomes the measures announced in the 2017 Federal Budget to address gas supply and affordability.

APGA Chief Executive Peter Greenwood said the Budget set out measure totalling $86.3 million over four years from 2017–18 to increase gas production and support affordable electricity prices for households and industry.

“These measures recognise the critical need to bring additional supplies of gas to Australia’s markets,” Mr Greenwood said.

“Measures amounting to almost $60 million are directly focussed on increasing gas supply, with $30 million for additional scientific assessments of unconventional gas projects and $29 million to encourage responsible development of onshore gas for the domestic market.

“These are both timely measures that demonstrate the Federal Government’s commitment to unlocking Australia’s gas reserves.

“It is now incumbent on the States and Territories to cooperate with the Federal Government to enable access to reserves to ensure secure energy supplies for all Australians.”

The 2017 Budget also includes specific measures to investigate two potential gas pipelines to South Australia; one from the Northern Territory and one from Western Australia.

“The interest in gas pipelines reflects the vital role in Australia’s energy markets that gas pipelines play,” Mr Greenwood said.

“However, it is important to remember that new pipelines will do little to address energy security if there is no new production to provide more gas into the system.

“The Federal Government should also be mindful that some of the gas market reforms under way, such as the arbitration framework and the day-ahead capacity auction will change the investment environment for gas pipelines.

“It’s important that the right balance is achieved between ensuring fair access to pipelines and maintaining investment signals to allow pipelines to be built and expanded as new gas supply is developed.”

Read more in the Budget gas measures welcome media release

Last updated on 10 May 2017 by cjogilvie