Pipeline gas cheaper than LNG: Cheryl Cartwright

“The WA Government recently considered establishing an LNG receiving terminal in Perth but shelved the idea because of cost,” said Ms Cartwright.

“Not only would it be foolish on a cost basis – the very reason gas is the future of energy is because it will reduce greenhouse gas emissions. One LNG terminal produces ten times more CO2 emissions than the whole of Australia’s gas pipeline infrastructure.

“It is not clear why Premier Barnett would make such a misleading statement; he should focus on getting gas from the North West Shelf into his local market in WA rather than allowing the major international companies to export the product without consideration for domestic gas users.

“The current gas retention policy in WA is virtually ineffective, although it does give the Government an opportunity to feign interest in increasing the State’s domestic gas supply.”

According to Ms Cartwright, LNG will never be a cheaper alternative than pipeline gas for Australia. Proof of this is the price of gas that has been liquefied for international transportation – $14-16 per GJ. Domestic gas in WA, transported via pipeline, costs $6-8. While construction costs are comparable, Ms Cartwright said continuing operating costs of a transmission pipeline are far less.

“Premier Barnett clearly doesn’t understand this major industry in WA,” Ms Cartwright said. “Even if the Government wasted taxpayers’ funds on a new LNG terminal in Perth, there aren’t enough ships to move the gas!”

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