Page 16 - GLNG Week 37

GLNG AUSTRAL ASIA GLNG

Australia unveils national gas strategy

POLICY THE Australian government has announced a sector until April 2021 to reach a final invest-
slew of natural gas-focused measures aimed at ment decision (FID) on 1,000 MW of new dis-
helping the economy to recover from the coro- patchable energy to come online in the summer
navirus (COVID-19) recession. of 2023-2024.
Prime Minister Scott Morrison this week that Canberra is concerned that the planned clo-
the government intended to “reset” the East sure of the coal-fired Liddell TPP in the Hunter
Coast gas market by encouraging both upstream Valley in 2023 will leave the grid short of dis-
and mid-stream development. patchable power. To that end, Morrison said
“The government [will] reset the East Coast the government had tasked state-owned Snowy
gas market and create a more competitive and Hydro to draw up contingency plans for a TPP
transparent Australian Gas Hub by unlocking at Kurri Kurri.
gas supply, delivering an efficient pipeline and “We won’t risk the affordability and reliability
transportation market, and empowering gas of the NSW energy system and will step in unless
customers,” he said in a September 15 statement. the industry steps up,” Morrison said.
Canberra wants to work with state and terri- Australian Energy Minister Angus Taylor said
tory governments to set new gas supply targets the market needed to focus on new, dispatchable
and enforce potential “use-it or lose-it” require- power. He said: “Over the last decade, the private
ments on gas licences. sector has not built a single new reliable power
Morrison committed AUD28.3mn plant in NSW. The government has always been
($20.66mn) of Commonwealth funding to clear – we need to see life extension or like-for-
find ways to unlock five key gas basins, starting like replacement of Liddell. If industry steps up,
with the Northern Territory’s Beetaloo Basin as we’ll step back.”
well as Queensland’s North Bowen and Galilee
basins. The Beetaloo Basin is estimated to hold Competition and transparency
500 trillion cubic feet (14.16bn cubic metres) of Competition and transparency were the watch-
shale gas potential. words of the prime minister’s announcement,
He added that his government would also with domestic gas prices a recurring worry.
be exploring options for a prospective gas The government has staked its claim to a gas-
reserve scheme while seeking new agreements based economic recovery, but without cheaper
with Queensland’s three coal-bed methane domestic supplies of the fuel that outcome
(CBM) to LNG projects to “strengthen price seems unrealistic.
commitments”. Morrison said his government would work
In the midstream, the prime minister unveiled with The Australian Competition and Con-
a new AUD10.9mn ($7.96mn) National Gas sumer Commission (ACCC) to review the
Morrison Infrastructure Plan (NGIP) that will identify pri- calculation of the LNG netback price. The
committed ority pipelines and critical infrastructure. While ACCC had complained in August that the dif-
the government wants the NGIP to help develop ference between netback prices and those paid
AUD28.3mn more transparent and competitive customer by domestic consumers had grown too wide. It
hubs, it will also serve to highlight projects that noted that domestic users were paying AUD8-
($20.66mn) of will receive government funding if the private 11 ($5.84-8.03) per GJ between late 2019 and
Commonwealth sector fails to invest. early 2020, far above netback prices that had
fallen below AUD5.50 ($4.01) in May.
funding to find Stepping up Canberra wants to reform pipeline regula-
The prime minister said his government was tion while also establishing a “dynamic sec-
ways to unlock hoping that private investors would shoulder ondary pipeline capacity market”, all in the
new gas projects, but that it would to back these name of greater competition. The creation
five key gas “nation-building” projects if the private sector of an Australian Gas Hub at Wallumbilla in

basins. did not. Queensland is also on the agenda, as it will
“This may include through streamlining deliver an “open, transparent and liquid” gas
approvals, underwriting projects or the estab- trading system.
lishment of a special purpose vehicle with a “To help fire our economic recovery, the next
capped government contribution,” Morrison plank in our JobMaker plan is to deliver more
said. Australian gas where it is needed at an inter-
It is a similar approach to the one Morrison nationally competitive price,” Morrison said.
unveiled in the power sector, where he has “We’ll work with industry to deliver a gas hub
pledged build a gas-fired thermal power plant for Australia that will ensure households and
(TPP) in New South Wales if private investors businesses enjoy the benefits of our abundant
bow out. local gas while we hold our position as one of
The federal government has given the private the top global LNG exporters.”™

P16 www. NEWSBASE .com Week 37 18•September•2020