Risk impacts on east coast gas investment
The ACCC Gas Inquiry 2017-18 Interim Report issued today highlights the critical importance of having the right settings in place to encourage investment in the nation’s gas infrastructure, APGA Chief Executive Officer Steve Davies said.
The report notes that despite an environment that includes some conditions that would normally prompt investment, such as high international oil and gas prices, investment is occurring at a slower rate than required to produce an increase in supply that would reduce prices.
“Energy infrastructure projects like gas transmission pipelines benefit from long-term policy and regulatory certainty as they are long-lived assets that take many years to recover the full investment,” Mr Davies said.
“That’s an important element that has been missing for quite some time. It is crucial that we do not lose sight of this as we head towards a federal election.
“After all, delays in getting the settings right pose an increasing risk to Australia’s gas-dependent manufacturing sector and we cannot risk losing that.
“The pipeline industry is always keen to invest and projects across the east coast are under active investigation despite the challenging conditions of policy and supply uncertainty.
“Competition to build new projects is fierce, as demonstrated by the number of parties that vied to build the just completed Northern Gas Pipeline."
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