Our guest speaker was Tim Shanahan, Chief Executive of the WA Chamber of Minerals and Energy. The CME, as the peak resources industry representative body in Western Australia, recently participated in a trade delegation to North America headed by WA Premier Geoff Gallop.

Tim’s presentation provided a very timely update on the growing role of West Australia as an LNG supplier to world markets. In particular, his presentation examined the US Energy Market and the emerging opportunities for West Australian LNG in this market.

Tim noted that WA already enjoys a strong trade and investment relationship with the United States and that 15 per cent of total private new capital expenditure in the West comes from the USA. His presentation outlined the looming gas supply shortfall in the North American gas market and the need to secure reliable, long term supplies from countries like Australia. High domestic US gas prices, coupled with new LNG technology, means that LNG imports are now becoming much more competitive in North America. The US is opening markets to free trade and investment in energy resources and is taking an active interest in Australia as a supply source. A number of competing LNG import projects are under active development including BHP Billiton - Cabrillo Port, ChevronTexaco - Baja California and Shell - Baja California. Copies of Tim’s presentation are available on the APIA website.

Unfortunately, the luncheon coincided with the electricity supply problems that plagued Perth at the time. Members and guests took this in their stride, although we were all a little flustered at times due to the lack of air conditioning. Our fuel switching needs were met very efficiently by the staff from the Hilton Parmelia Hotel by means of battery powered lanterns, which were fortunately not required. Let’s hope that the electricity supply problems encountered in Perth do not become a long term conundrum!