Oz-US Agree to Develop Indo-Pacific Gas Market
Australia's prime minister Malcolm Turnbull signed a deal on his recent trip to the US for the two countries to co-operate in developing gas markets in Asia, federal minister for resources and northern Australia Matthew Canavan told delegates at the Australian Domestic Gas Outlook conference February 28.
“The launch of the strategic partnership in energy in the Indo-Pacific will promote the development of regional infrastructure and energy co-operation,” he said.
“There is the need to transition to lower emission sources of energy supply and gas is right up there – gas should be right up there as the next cab off the rank; but, some of the infrastructure in Asia does need increased investment in receival terminals, pipelines, to allow gas to be taken up in our region,” he said.
He noted US president Donald Trump, in his State of the Union speech, commented that the US is about the become a net energy exporter for the first time since the 1970s, and said his (Canavan’s) Department estimates the US can currently deliver gas to North Asia for around the $6-$7/gigajoule level.
“It’s very competitive to what we can do. So, we face a challenge there, we face a challenge to ensure that we will still be the country of choice to supply the energy to North Asia.”
“It’s not just about competition with the US, though, either. While we need to be wary of that and be on top of our game, there are also opportunities for us to co-operate to expand the use of gas, in particular, in Asia markets,” he said.
He said the agreement is also aimed at creating open and competitive energy markets and rules and standards in the region.
“I’ll be visiting the US next week and I plan to discuss this agreement further and work out more of the details of how we will work together to do these things,” he said. “It’s a great opportunity for both our countries and a great opportunity for our region,” he said.
The partnership has the potential to ruffle China's feathers as it extends its territorial claims overseas, building and manning islands far beyond its territorial waters.