An influential member of Australia’s energy industry believes LNG imports should be a consideration to solve the country’s energy crisis.
According to APPEA Advisory Board Chair, and former Federal Minister for Resources and Energy, Martin Ferguson AM, import terminals are an option because policy is preventing new projects in Australia’s southern states.
Speaking at the Australian Domestic Gas Outlook Conference in Sydney, New South Wales, Mr Ferguson said the country’s east coast was paying less for gas than Japan, Korea and China, which is an obstacle for those backing import terminals.
“Import terminals are one way to expand supply in southern markets – in my view, a second-best option because Australia exports jobs and royalties by not developing our own resources,” he said.
“It is an option only under consideration because of the political barriers to local projects in the southern states.
“In terms of public policy, it is a spectacular own goal by governments which desperately need more gas but refuse to support local projects.”
Mr Ferguson said his analysis didn’t mean import terminals should be totally discounted, but said the focus needed to be on the continued development of domestic resources.
“The market needs, most of all, more supply and more suppliers,” he said.
“Using Queensland gas to supply southern markets does not deliver lower prices.
“The solution to tightening market conditions in NSW and Victoria is more local supply, not interventions which put at risk investment in developing Queensland gas reserves.
“Better access to develop local, onshore gas projects is essential.”
For more information visit the APPEA website.
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