First elected as a Member of Parliament in 1996, Martin Ferguson has served as Australia’s Minister for Resources and Energy since Labor was elected to government in 2007.

On his achievements as Minister and his priorities for the rest of the term…

I’ve just clocked up three years as the Minister and they have been an interesting three years. We’ve been fortunate to be at the centre of managing some huge investments in Australia, especially in the LNG sector. These investments will see Australia go from the fifth largest exporter to about the second largest exporter of LNG in the world behind Qatar by 2015–16.

Projects such as Gorgon and the east coast coal seam gas (CSG) projects out at Gladstone represent wonderful investment opportunities for Australia and will have a big impact on jobs and wealth over time.

We also have key investment decisions in the pipeline on Ichthys, Browse, additional east coast investments on LNG and potentially the first-ever floating LNG project with Prelude. One of our priorities is ensuring these projects are delivered on time and on budget.

We are also working on securing final investment decisions for these major projects and seeing the start of construction on Macedon in Western Australia. Another priority is working out how, with the LNG projects in Queensland, we make sure we’ve got sufficient domestic gas on the east coast of Australia because we’re going to need it.

On a single offshore petroleum national regulator…

One of the big issues I’m working on at the moment is a single national regulator in the offshore oil and gas sector. That is very much a big priority for me. Effectively three independent reports have strongly recommended a single national regulator, as do the reports out of the Macondo incident in the Gulf of Mexico. The single national regulator is supported by industry; it’s supported by all state and territory governments except Western Australia.

I simply say to my Western Australian colleagues that this is not about a Commonwealth takeover; there’s no way we would ever develop on land a gas hub without full and proper consultation with the Western Australian Government. Browse is a prime example – if anything, the push for Browse has actually come from the Western Australian Government and we are working with them to facilitate it with proper environmental considerations side-by-side with negotiating successful Indigenous outcomes.

The community’s expectation of the industry following the Montara and Macondo incidents is higher. They expect the Commonwealth to deliver a stronger single national regulator, and I think that is a very important down payment on the right of this industry to continue operating in Australian waters.

On the Petroleum Resource Rent Tax…

The Argus/Ferguson report was presented to the Treasurer on 23 December 2010. There is now a process for a whole-of-government consideration of that report, led by the Treasurer and myself. In due course we will announce our public response and present legislation to Parliament going into the implementation of the Argus/Ferguson report, which is a new tax. It is a different tax proposal to the original proposal of 2 May 2010.

For petroleum, the real issue is the extension onshore of what is a well-established and accepted petroleum resource rent tax regime. That was very much sought by industry, so you’ve got a level playing field onshore and offshore.

On a carbon price…

Government recognises the need to provide policy certainty so that the pipeline of investment can continue. We’ve announced a premise for discussion out of the multi-party climate change committee. I am very firmly of the view that a price on carbon is going to create a huge growth opportunity for gas. That is really the only viable form of alternative clean energy in Australia at the moment – it’s reliable, and it’s lower emitting.

The other growth industry because of the recent price on carbon is effectively wind. However wind, from my point of view as the national energy minister, is an entirely different proposition because it lacks reliability. Gas is there to be brought forward with a market opportunity coming its way if we resolve the debate on a price on carbon and get certainty for investment decisions. That’s the big ‘if’.

On gas-fired power generation…

The capacity of gas-fired power generation to grow in Australia will be dependent on market opportunities and commercial decisions. We as a government don’t seek to pick winners, but to create the framework for the market to sort out investment decisions. The only thing we’re doing is seeking to create a price on carbon side-by-side with a renewable energy target, which creates a new framework for the development of our energy system in Australia.

On the role of LNG in a carbon-constrained economy…

In November 2009, a package agreed between then Prime Minister Kevin Rudd and Leader of the Opposition Malcolm Turnbull settled an appropriate framework to consider energy-intensive trade-exposed industries, and the LNG sector was part of that negotiated outcome. Clearly we understand the importance of that sector, not only from an export point of view but in the global clean energy strategy. Natural gas emits approximately 55 per cent less CO₂ equivalent emissions per megawatt hour than coal-fired generation, and it also uses substantially less water. An example of that is Australia’s newest combined-cycle gas-fired power station built by Origin in Queensland, which requires about 3 per cent of the water used by a conventional coal-fired power station.

One tonne of CO₂ produced in production of LNG in Australia saves four tonnes of CO₂ emissions in China compared to the use of a coal-fired power station. That speaks for itself.

On the gas industry maintaining competitiveness in the long term…

For the gas industry, it’s about being able to take the risk on investment. It is a proven, reliable form of clean energy.

If they can see not only a market opportunity through our growing demand for energy but also the potential retirement of some old coal-fired power stations, then they will make the decisions and gas will come through. Where investors can see a market opportunity five or six years down the track, they can make the investment decision and do the build, and they get growth plus the retirement of some turbines, which means the investment stacks up.

The Government’s ambition to introduce the carbon price is 1 July 2012. You’ve seen the reaction of companies such as Origin and TRUenergy – they’ve clearly got options on the table that they can take to the board for consideration once they know the investment parameters. That’s effectively where we’re at. It’s going to be a pretty exciting period that occurs because we have to actually get investment decisions.

Looking forward five, ten, fifteen years about where we’re going to need investment, the focus will be on Queensland and New South Wales, just in terms of normal growth strategy with the retirement of older coal-fired power stations.

One way or another, we’ve got to have the fight on a price on carbon and resolve it. Industry needs an outcome one way or another.

Previously the Minister has said on the opportunities for the gas transmission industry...

It is a very exciting time to be working in Australia's gas supply industry. Gas has an important role to play in Australia's future, particularly in light of the focus on reducing greenhouse gas emissions.

Australia's gas consumption is projected to double by 2030. This is as a result of gas being forecast to provide 33 per cent of our primary energy consumption and 37 percent of our electricity generation by 2030.

Clearly there will be a significant need for the private sector to continue to invest in supporting pipeline infrastructure.

This growth in pipeline investment will come on top of the tripling in the length of Australia’s gas transmission network that has occurred since the early 1990s, and the more than $4 billion that has been spent on new and upgraded pipelines since 2000.

The growth in the gas supply industry will occur in an environment where companies are placing a premium on hiring, training and retaining skilled labour.

The Government is conscious of these workforce pressures, and is continuing to invest in skills. This forecast growth in domestic gas consumption is part of a global trend, which will also be of benefit to our exporting LNG sector.

Fortunately, Australia has significant gas resources – large enough to support projected domestic and export market growth beyond 2030.

As the Minister for Resources and Energy, it is my responsibility to ensure the right investment framework exists so that Australia can keep up with demand for gas domestically while expanding our LNG exports. I intend to do just that.

On regulations and infrastructure, the Minister told The Australian Pipeliner this month that…

The National Gas Law (NGL) and National Gas Rules that commenced on 1 July 2008 bring regulation of natural gas pipelines under the national energy framework in line with electricity.

They deliver the benefit of consistent regulatory decision making across the energy sector, and a common approach to the development of rules governing gas and electricity networks. This has been increasingly important for businesses that are operating across what is now an interconnected eastern gas market.

The 15-year, no-coverage determination provisions provide an incentive for greenfield pipeline development. They are intended to promote regulatory certainty for investors in new pipeline projects and to encourage efficient investment in new pipeline infrastructure.

The NGL implements reforms developed by the Gas Market Leaders Group, including the National Gas Market Bulletin Board and the Short Term Trading Market which has hubs operating in Sydney and Adelaide. A new Brisbane hub is expected to commence in December 2011. These initiatives increase transparency and opportunities for trading in the gas market, providing the right market framework for future gas industry development.

Above all else, these initiatives improve the environment for investment in gas pipelines in Australia to ensure that there is adequate infrastructure to meet Australia's demand for gas.

In addition, the Government has been supporting the development of this infrastructure through the Energy Pipelines Cooperative Research Centre (EPCRC). The EPCRC was announced on 7 August 2009 by my colleague, the Minister for Innovation, Industry, Science and Research, and was launched in June last year.

The EPCRC is working to create new technologies to safely extend the life of the existing pipeline network and facilitate construction of new networks, especially designed for the Australian environment, for transmission of gas and emerging energy cycle fluids. The research aims to contribute to facilitating the safe and effective transportation of CO₂ for carbon, capture and storage.