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AsiaElec POLICY AsiaElec

Australia unveils national gas strategy

AUSTRALIA THE Australian government has announced a sector until April 2021 to reach a final investment
slew of natural gas-focused measures aimed at decision (FID) on 1,000 MW of new dispatch-
helping the economy to recover from the coro- able energy to come online in the summer of
navirus (COVID-19) recession. 2023-2024.
Prime Minister Scott Morrison this week Canberra is concerned that the planned clo-
that 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
tory governments to set new gas supply targets said the market needed to focus on new, dis-
and enforce potential “use-it or lose-it” require- patchable power. He said: “Over the last decade,
ments on gas licences. the private sector has not built a single new reli-
Morrison committed AUD28.3mn able power plant in NSW. The government has
($20.66mn) of Commonwealth funding to find always been clear – we need to see life extension
ways to unlock five key gas basins, starting with or like-for-like replacement of Liddell. If indus-
the Northern Territory’s Beetaloo Basin as well as try steps up, we’ll step back.”
Queensland’s North Bowen and Galilee basins.
The Beetaloo Basin is estimated to hold 500 tril- Competition and transparency
lion cubic feet (14.16bn cubic metres) of shale Competition and transparency were the watch-
gas potential. words of the prime minister’s announcement,
He added that his government would also be with domestic gas prices a recurring worry.
exploring options for a prospective gas reserve The government has staked its claim to a gas-
scheme while seeking new agreements with based economic recovery, but without cheaper
Queensland’s three coal-bed methane (CBM) domestic supplies of the fuel that outcome seems
to liquefied natural gas (LNG) projects to unrealistic.
“strengthen price commitments”. Morrison said his government would work
In the midstream, the prime minister with The Australian Competition and Consumer
unveiled a new AUD10.9mn ($7.96mn) National Commission (ACCC) to review the calculation
Gas Infrastructure Plan (NGIP) that will iden- of the LNG netback price. The ACCC had com-
tify priority pipelines and critical infrastructure. plained in August that the difference between
While the government wants the NGIP to help netback prices and those paid by domestic con-
develop more transparent and competitive cus- sumers had grown too wide. It noted that domes-
tomer hubs, it will also serve to highlight projects tic users were paying AUD8-11 ($5.84-8.03) per
that will receive government funding if the pri- GJ between late 2019 and early 2020, far above
vate sector fails to invest. netback prices that had fallen below AUD5.50
($4.01) in May.
Stepping up Canberra wants to reform pipeline regula-
The prime minister said his government was tion while also establishing a “dynamic second-
hoping that private investors would shoulder ary pipeline capacity market”, all in the name
new gas projects, but that it would to back these of greater competition. The creation of an Aus-
“nation-building” projects if the private sector tralian Gas Hub at Wallumbilla in Queensland
did not. is also on the agenda, as it will deliver an “open,
“This may include through streamlining transparent and liquid” gas trading system.
approvals, underwriting projects or the estab- “To help fire our economic recovery, the next
lishment of a special purpose vehicle with a plank in our JobMaker plan is to deliver more
capped government contribution,” Morrison Australian gas where it is needed at an interna-
said. tionally competitive price,” Morrison said. “We’ll
It is a similar approach to the one Morri- work with industry to deliver a gas hub for Aus-
son unveiled in the power sector, where he has tralia that will ensure households and businesses
pledged build a gas-fired thermal power plant enjoy the benefits of our abundant local gas while
(TPP) in New South Wales if private investors we hold our position as one of the top global
bow out. LNG exporters.”™
The federal government has given the private

P8 www. NEWSBASE .com Week 38 23•September•2020