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    Queensland Criticizes Oz Gas Reservation Plans

Summary

The Australian government August 6 said it would consider options to establish a prospective national gas reservation scheme to boost supplies in the domestic market.

by: Shardul Sharma

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Queensland Criticizes Oz Gas Reservation Plans

The Queensland government has criticized Australian federal government’s plans to create a national gas reservation scheme and demanded consultation, it said August 6.

Queensland energy minister Anthony Lynham said that as it was the leading state on gas policy and supply for the east coast gas market, the state government deserved to be part of any discussions about major market disruptions.

“We are deeply concerned that this meddling, which is not relevant to Queensland, may impact on our multi-billion dollar gas industry that Labor governments have built here from scratch,” Lynham said.

The Australian government August 6 said it would consider options to establish a prospective national gas reservation scheme to boost supplies in the domestic market. This was part of a joint media release by treasurer Josh Frydenberg, minister for energy and emissions reduction, Angus Taylor and resources minister Matthew Canavan.

“Queensland has long been doing the heavy lifting on gas policy and supply. We supply about 25% of the east coast gas market and have been leading policy innovation by setting aside land for gas for domestic buyers, and for manufacturers. More gas is the key to meeting demand, and that’s what our policies are driving,” Lynham added.

Australia’s LNG exports from Queensland projects have surged in past few years as prices in the East Australian market have gone up. The government has been under significant pressure from the manufacturing sector to rein in prices and boost supplies. Two years ago, it introduced the Australian Domestic Gas Security Mechanism. Under this mechanism, the government every year assesses whether LNG exports from Queensland need to be restricted. Till now the government has not restricted exports.

“Our domestic supply policy allows for more gas to be brought to market, and more gas from more fields is the only long-term way to deal with supply issue and ultimately with price,” Lynham said. “The LNP federal government has never consulted Queensland on its domestic gas security mechanism and we remain in the dark on whatever is planned next.”