The Victorian Chamber of Commerce and Industry today repeats its calls on the Victorian Government to lift the moratorium on onshore conventional gas exploration.
The need for action has never been more urgent, with manufacturer Dow Chemical citing rising gas prices as a contributing factor in its decision to close its Melbourne West plant.
Victorian businesses have for too long faced uncertainty around gas prices and security of supply.
The news of Dow Chemical's closure in Melbourne West realises our worst fear, that major manufacturers will stop operating in Victoria and relocate operations to ensure they have access to secure and affordable energy.
The Australian Energy Market Operator released a report in March finding that additional sources of Victorian gas are required to avert a crisis in gas supplies from 2024.
The Victorian Chamber has long advocated for increased gas supplies to address high prices, including lifting the moratorium on onshore conventional gas exploration, set to expire in June 2020.
The Victorian Chamber does not support fracking.
To be attributed to Victorian Chamber Chief Executive Mark Stone AM:
"More jobs will be lost unless the Victorian and Commonwealth Governments bring prices back under $9/gj, the price at which domestic manufacturers say they cannot compete globally.
"The Victorian Government needs to act now to stop Victorian businesses from running out of gas and moving their operations out of Victoria.
"Businesses have been warning for years that high gas prices are posing a risk to their businesses. Now, with the news about Dow Chemical's closure, we are seeing the worst-case scenario start to unfold.
"To avoid more closures, and stem job losses in the manufacturing sector, we are calling for a regulatory regime to manage the risks of individual gas supply projects on a case-by-case basis to be installed instead of the moratorium."
