State Government of Queensland : Gas report says prices easing, but supply the solution

The latest expert report shows Queensland had the lowest wholesale gas prices in Australia last year, but more gas is needed to drive down prices.

The Gas Price Trends Review 2017 ( https://www.energy.gov.au/sites/g/files/net3411/f/gas_price_trends_review_2017.pdf ) released today shows prices for Queensland industrial customers fell 11 per cent from 2015 to 2017, while prices rose in most other states.

Natural Resources, Mines and Energy Minister Dr Anthony Lynham said the trend was a positive for industrial gas users, including manufacturers, but more supply was needed.

'Queensland has been doing the heavy lifting on boosting gas supply since 2016,' he said.

'Gas is a feedstock as well as an energy supply, and those costs impact on employers' ability to create jobs.

'We have Jemena's $800 million Northern Gas Pipeline bringing Northern Territory gas to Mount Isa, and potentially to the east coast market.

'Tenders are being assessed for almost 400 square kilometres of highly prospective land in the Surat and Bowen Basin, restricted to supply the Australian market.

'Senex is already at work preparing to produce gas for the Australian domestic market on the 58 square kilometres of coal seam gas acreage near Miles in the Surat Basin.

'We will continue these releases, delivering on our election commitment to release land annually for gas exclusively for the Australian market.

'It's time for the Turnbull government to take some of the expert advice it's now had from the Chief Scientist's review ( http://www.environment.gov.au/system/files/resources/1d6b0464-6162-4223-ac08-3395a6b1c7fa/files/electricity-market-review-final-report.pdf ) and this COAG team.

'Invest in some infrastructure and encourage gas exploration and development.'

The report, prepared for the COAG Energy Council ( http://www.coagenergycouncil.gov.au/ ), says:

• the average gas price delivered to Brisbane/South East Queensland large industrial customers was $9.69/GJ , compared to the east coast average of $10.08/GJ
• 'price drivers are heavily related to the supply of gas' - p28
• more exploration for domestic gas supply would help cut gas costs and curb future rises (p29)
• 'new transmission pipelines that may haul gas at lower costs (e.g. Wallumbilla to Sydney)' would also help reduce costs. (p29)

[ENDS]

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