“We welcome the Green Paper’s inclusion of the upstream gas market in its call for increased transparency and competition,” APIA Chief Executive Cheryl Cartwright said today.
“Traditionally, when the Government has indicated policy reform through market development, the focus has been narrow, on transmission and the downstream markets overseen by the National Gas Law.
“It is widely accepted that, with increasing exposure to international gas markets, Australia will face higher prices. There is also concern about the availability of gas when the major LNG facilities begin shipments from next year as the vast quantities of gas required to meet international contracts will put pressure on the whole supply chain.”
The Energy Green Paper points out that the answer to any shortage of supply is to provide more gas. The first, logical, development should be coal seam gas in New South Wales, as the State will be hit hardest by any gas shortage and because its CSG reserves are proven.
“Unfortunately, community concerns and State Government responses to those concerns have led to increasingly strict regulatory requirements and major delays and cancellations of projects,” Ms Cartwright said.
“The other option is to ensure sufficient gas is supplied from other gas reserves and the Green Paper highlights the need to encourage increased upstream competition and transparency to encourage more gas into markets.
“Gas market reforms of recent years have delivered market developments such as the Short Trading Markets, transmission pipeline capacity trading and the Wallumbilla supply hub. Gas supply issues, availability and price, continue to be the main risks facing gas market participants.
“The gas transmission industry welcomes the Green Paper’s call for increased transparency and competitiveness across the whole gas chain and we look forward to working with policy makers to achieve this outcome.”
Visit www.apia.net for more information or download the Green paper at www.ewp.industry.gov.au .
