QLD takes action on gas

The Queensland Gas Supply and Demand Action Plan aims to maximise new exploration and development of gas in the state.

The Queensland Gas Supply and Demand Action Plan aims to maximise new exploration and development of gas in the state.

August 11, 2015

By Emma Brown

QUEENSLAND is set to benefit from a new plan designed to maximise exploration and development, and lower gas costs.

Due for completion next year, the Queensland Gas Supply and Demand Action Plan will focus on identifying barriers to achieving least cost supply, ensuring transparent market mechanisms, and helping Queensland capitalise on demand opportunities both in Australia and internationally.

“This action plan will be overarching strategy to maximise exploration, drive development, keep gas costs down and get maximum economic and job benefit for Queensland,” Queensland’s state development and natural resources and mines Dr Anthony Lynham said.

“The eastern Australian gas market is undergoing a period of rapid growth and structural transformation following the commencement of gas exports to the Asia-Pacific market.
“Our Gas Action Plan will aim to stimulate increased gas supply, optimise the economic recovery of gas resources, and leverage and build on the Commonwealth Government’s various gas and energy initiatives.”

Australian Petroleum Production Exploration Association (APPEA) chief operating officer for Eastern Australia Paul Fennelly said the plan would be a winner for Queensland if it encouraged the ongoing growth of the industry.

“It is essential that the plan focus on policies that will substantially enhance the industry’s global competitiveness and encourage investment in new exploration and production,” Mr Fennelly said.

“That means continuing to reject unworkable intervention policies, such as domestic gas reservation, that will deter investment and only create adverse economic outcomes in the longer term.”

Mr Fennelly said the investment of more than $70 billion worth of new gas infrastructure in Queensland since 2010 would help Australia become the world’s leading liquefied natural gas exporter in the next few years.

“With domestic and global demand for gas forecast to increase, Queensland can attract further investment and growth in the industry if we get the policy settings right,” he said.