APPEA: Plenty of gas for local and export markets

It seems inconceivable to some that Australia, with its abundant, affordable and accessible supplies of natural gas, cannot simultaneously export the product and supply it for domestic use.

The Australia Institute’s recent wobbly attempt to blame looming NSW energy price hikes on future LNG exports from Queensland continues to ignore some basic economic principles, market realities and home truths.

Gas prices are rising due to an increase in domestic and global demand for energy and an increase in production costs. As demand for any good, including natural gas, increases and the cost of producing that good increases, so does the price.

Gas is now a global game, in which Australia is a key player. Unlocking Australia’s abundant resources will undoubtedly put downward pressure on price.

The second biggest onshore natural gas field is within the borders of NSW, yet NSW imports 95 per cent of its gas from other states. This is despite indigenous reserves that would fulfill its natural gas needs for the next 20 years, and potential resources that could supply the state with the cleaner burning energy source well into the next century. MORE