Australia’s oil and gas industry has urged the incoming New South Wales Labor Government to recognise the crucial role of natural gas in the state’s cleaner energy future and enable investment in new supply to avoid forecast shortfalls and put downward pressure on prices.
The Australian Petroleum Production & Exploration Association (APPEA) today congratulated Premier-Elect Chris Minns for winning the support of NSW voters at yesterday’s state election.
APPEA Chief Executive Samantha McCulloch said repeated recent warnings from independent authorities like the Australian Competition and Consumer Commission (ACCC) and the Australian Energy Market Operator (AEMO) could not be ignored in the state any longer.
“The oil and gas industry congratulates Chris Minns on his victory and urges his new team to consider the serious and immediate energy challenges as a matter of priority” Ms McCulloch said.
“New South Wales is a big gas user but has left its own reserves in the ground and outsourced its energy security, exacerbating the cost-of-living pressures on NSW households and businesses.
“Bans and regulatory uncertainty have made new supply investment very difficult and left users paying $2/GJ extra when gas is transported from Queensland, often over untapped NSW reserves.
“The new government needs to recognise the key role of natural gas in a cleaner energy future as identified by international and national energy authorities and echoed by the Prime Minister.
“The state needs to provide a clear strategy to promote investment in new supply in order to help avoid forecast shortfalls in the east coast energy market and put downward pressure on prices.
“This could include fast-tracking new supply options like the long-delayed Narrabri Gas Project, which could supply enough natural gas to meet up to half of the state’s gas demand.”
Ms McCulloch said states which have put in place investment-friendly environments benefited greatly – with better energy security, cheaper energy, emissions reductions and substantial economic benefits.
“Queensland, for example, forecasts $7 billion in gas royalties in coming years to build hospitals and roads while over 30,000 jobs are supported by its CSG and LNG developments,” she said.
“New South Wales, meanwhile, is missing out on the public revenue and jobs that local gas production provides while risking the lights going out.”
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