APGA Chief Executive Cheryl Cartwright said the gas transmission industry agreed with the Government’s rejection of gas reservation and the need for a market-based response to gas demand.
“If there’s a shortage in a market, or if the price is high, the market should respond; current higher prices and intensive demand should encourage an increase in supply, so we welcome a review of competition in the wholesale gas market,” said Ms Cartwright.
“While we are very enthusiastic about the positive impact on the economy of increasing gas exports, the local gas market should not be overlooked. We therefore welcome and encourage any policies that will bring more gas into the national gas market.
“We would also welcome removal of impediments to the development of coal seam gas in New South Wales and Victoria.
“In the meantime, APGA and our member companies will continue to work with policy-makers on possible improvements to the operation of the gas market.”
APGA also noted the Government’s support for a technology-neutral approach to fuel supply.
“The Energy White Paper notes the distortive impact of interventions such as the Renewable Energy Target and solar feed-in tariffs,” Ms Cartwright said.
“While APGA accepts the need to further develop renewable energy sources, we believe this should not be undertaken in a way that sees increased investment in higher-polluting technologies.
“The intervention of the RET – as well as other factors such as the current high price of gas – has seen a switch from gas-fired power generation to the more polluting coal-fired power generation.
“A technology-neutral emissions reduction target would be a more efficient system financially and reduce emissions.”
Read the Federal Government’s Energy White Paper for yourself here.
