14 December 17, 3:34pm
Western Australia could face a gas shortage if new supply is not developed in the next five to seven years. Banning… https://t.co/OlCYH9cHO3
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Australia’s upstream gas industry is committed to working with the Federal Government to ensure sufficient gas is available to meet peak demand in the National Electricity Market.
APPEA Chief Executive Dr Malcolm Roberts said the meeting between the Prime Minister and gas producers in Canberra today had been constructive.
“The Australian Energy Market Operator has highlighted that gas-fired generation must stay in the energy mix to protect energy security,” Dr Roberts said.
“APPEA welcomes the Prime Minister’s initiative to work with the industry to remove the barriers to more gas supply.
“The gas industry will always work to ensure there is sufficient gas to meet Australia’s domestic needs.
“This is despite the fact that some state and territory governments have made this task more difficult than it should be with unnecessary restrictions, moratoriums and blanket bans on new onshore gas projects.
“Australia will secure its long-term energy future only when unnecessary restrictions on natural gas development are removed.”
Summary of Outcomes – East Coast Gas Market Meeting
1) Peak Electricity Demand – Gas Supply Guarantee
Gas producers guarantee that gas will be available to meet peak demand periods in the National Electricity Market (such as during heat waves).
Implementation arrangements will be developed with the market bodies and other industry participants – AEMO will be given a power to direct the market.
This arrangement will be in place in time for next summer.
2) New gas production
The gas producers have agreed to make more gas available to the domestic market as soon as possible, to keep downward pressure on prices.
Producers will revise their domestic gas production forecasts, and the Australian Energy Market Operator will produce an updated supply outlook.
Two of the LNG exporters gave a commitment to being net domestic gas contributors, as part of their social licence. The third has taken the matter on notice.
3) Market transparency
The ACCC and Dr Mike Vertigan will advise on options to quickly improve transparency in the gas market, to facilitate competition between producers and information for purchasers.
The scope will include the full supply chain – producers, transporters, retailers.
4) State regulation
The meeting called on the state and territory governments to revisit restrictions on gas exploration and development.
5) Community support
Industry acknowledged the importance of community support.
6) Gas market reform
Gas market reforms arising from the recent ACCC gas review will be accelerated. These reforms will improve pipeline capacity trading and gas trading markets.
Further reforms to improve the gas market will be urgently considered.
7) Implementation arrangements
The Government is establishing a Taskforce that will manage implementation of the above outcomes, and report to the Cabinet Energy Committee.
The Taskforce will include key Departments (PM&C, Energy, Industry, Treasury) and agencies (Geoscience Australia) and energy market bodies (AEMO, ACCC/AER, AEMC).
The parties agreed to meet again in a month to review progress.
Ministers Frydenberg, Sinodinos and Canavan will meet with gas pipeliner and customers over the next few weeks
The following letter will be sent to people who seek to represent you in Federal Parliament.
Dear [title] [surname],
Australia is blessed with abundant, affordable, reliable, and safely accessible natural gas reserves.
I want you, as my federal parliamentary representative, to support the Australian natural gas industry’s development so that it may put downward pressure on energy prices and bring on the next wave of Australia's prosperity.
The oil and gas industry is currently spending close to $200 billion on new projects that have so far generated 100,000 jobs across the Australian economy; which will see the industry’s tax contribution rise to almost $13 billion per annum by 2020; and which will underpin the Australian economy for decades to come. We need to also support the next wave of projects that are today under consideration.
I am sending you this because I want to see action on creating more Australian industry and jobs.