Page 10 - AsianOil Week 48 2021

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Australia releases 20-

year gas sector strategy

POLICY THE Australian government released its first full investment over the next 20 years, while guid-
National Gas Infrastructure Plan (NGIP), along- ing industry to priority areas that “need to be
side the Future Gas Infrastructure Investment addressed to avoid a supply shortfall”.
Framework, late last week. He said: “This will ensure our domestic gas
The government said on November 26 that prices remain internationally competitive.
the plan and the framework were part of Prime The UK and Europe have experienced price
Minister Scott Morison’s “gas-led recovery” increases [of] over 400% in recent months due
strategy and that they would secure national gas to gas shortages. The government cannot sit
supplies over the next 20 years. back and allow that to happen here. Austral-
To this end, the NGIP sets out a long-term ian prices have remained 60-70% lower than
development pathway that locks in supply for prices in Asia and Europe even in light of this
households and manufacturers, and five priority major energy shock.”
actions for East Coast gas supply and infrastruc-
ture out to 2040. Speeding up the recovery
Meanwhile, the Future Gas Infrastructure The Australian government’s “gas-fired recov-
Investment Framework, which will be used to ery” aims to drive up domestic gas production
implement the supply and infrastructure priori- such that local prices fall and the manufacturing
ties, lays out the principles for potential govern- sector benefits in the long run.
ment support. Taylor said the government’s focus on gas and
energy security had helped to grow the Austral-
Production and transmission ian manufacturing sector to “more than 1mn
The government said at least one new basin jobs – levels not seen since 2009”.
would need to be brought online before 2030 to The government is also calling on industry to
meet projected East Coast gas demand. It went contribute to a new expression of interest (EoI)
on to identify Santos’ Narrabri coal-bed meth- process that is seeking submissions on critical
ane (CBM) project in New South Wales, the mid-stream gas infrastructure projects that
Northern Territory’s Beetaloo sub-basin as well meet both the NGIP’s priorities identified and
as Queensland’s Galilee and North Bowen basins the framework’s principles.
as “critical” sources of new supply. These include projects that enhance compe-
In addition to upstream investment, the tition in the market and allow for the consid-
NGIP wants to expand both the capacity of net- eration of gas infrastructure that also supports
works that supply the East Coast market as well hydrogen, carbon capture and storage (CCS) and
as the capacity of the north-to-south pipeline biomethane.
network. Taylor said: “The government wants industry
Australian Energy Minister Angus Taylor to make these investments, and the investment
said: “The Morrison government is serious about framework and EOIs will allow us to take action
gas and acknowledges the important role it plays to accelerate the development of critical projects
supporting jobs, food-production, manufactur- to final investment decision [FID].”
ing, industry, exports and energy supply.” As part of the government’s commitment to
The minister added that the NGIP would sup- an ongoing series of NGIPs, Canberra intends to
port a strategic approach to gas infrastructure deliver the next report in late 2022.™

P10 www. NEWSBASE .com Week 48 03•December•2021