Australian Government to Focus on Gas Sector in Northern Part of the Country

The Australian government intends to design policies to facilitate the growth of natural gas sector of the northern part of the country.

In a white paper released Thursday, the Liberal-National coalition government outlined plans to finance spending on various infrastructure to help develop hydrocarbon, mineral and agricultural resources.

The government believes both onshore and offshore areas across northern Australia have good potential for further discoveries as large parts are still underdeveloped.

Endorsing the proposed natural gas pipeline line from Northern Territory to Australia’s east coast, the white paper said, “The proposed North/East Gas Interconnector being advocated by the Northern Territory government to connect with Australia’s eastern natural gas market will be an opportunity to test the gas market’s appetite to grow the industry.”

“Such a link has the potential to contribute to a more efficient gas market through infrastructure that links markets, builds resilience and enables new gas resources to be developed,” the government stated.

Australia’s eastern natural gas market has undergone substantial development over the past 20 years, transitioning from an isolated and self-sufficient market to one linked to high value international gas markets. While some of this reform has been mirrored in the unconnected northern and western gas markets, more work is required in this area, the government said.

“Linking markets will assist in facilitating reform across the sector if commercial realities support the development required to achieve this aim,” the government said.