The Federal Government’s 2020-21 Budget includes millions of dollars to unlock gas reserves in Queensland and the Northern Territory.
Upon releasing its Budget last night, the government announced it would be committing $42 million worth of investments to unlock new gas supply, starting with the NT’s Beetaloo Basin and the North Bowen and Galilee basins in Queensland.
“$10.9 million will be invested to strengthen gas infrastructure planning and deliver market reform to lower the price of gas for households and manufacturers,” the government said.
“This includes developing an inaugural National Gas Infrastructure Plan (NGIP) to identify priority infrastructure projects, and options to boost the Wallumbilla Hub into a more transparent Australian gas hub, like the Henry Hub in the US.”
The government also said it would be making a $250.7 million investment in new diesel fuel storage facilities and progressing reforms to boost the resilience of fuel supply and support local refineries.
Australian Petroleum Production and Exploration Association (APPEA) CEO Andrew McConville yesterday said the government had recognised the “pivotal” role the oil and gas industry played in Australia’s energy future.
“Tonight’s Budget is another important step in helping unlock the next wave of investment that will underpin Australia’s economic recovery out of the COVID-19 recession,” said Mr McConville.
“The announcement to introduce an investment allowance for businesses is a positive step.
“It will help to improve capital availability and investment, growth in wages and GDP in the same way as a company tax cut, while also raising national income.”
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