The Australian Petroleum Production & Exploration Association (APPEA) has released a statement claiming that the national interest test on gas exports announced by Australia’s Labor Party is “poor policy that will discourage rather than stimulate investment in developing Australia’s gas reserves.”
APPEA CEO, Dr Malcolm Roberts, said: “There is an urgent need to bring more gas to market to ensure reliable, long-term supply in eastern Australia […] Exploration has been falling for many years and conventional gas production is now declining.
“The COAG Energy Council has confirmed its priority is to increase supply […] The Australian Competition and Consumer Commission (ACCC) has called for the removal of policy restrictions on new developments […] Under these circumstances, we need policies that encourage more investment in developing new reserves.
“Adding new regulatory risks does not help, especially at a time of depressed prices. International investors are very sensitive to any changes to sovereign risk in Australia.”
Dr Roberts continued: “An export gas industry does not threaten domestic gas supply. Our major gas exporters are also major suppliers to the domestic market […] The opportunity of LNG exports has made possible the massive reinvestment in gas production and infrastructure of recent years […] Australia cannot afford to increase sovereign risk and project costs if it wishes to convert its gas reserves into jobs, royalties and exports.”
Edited from press release by Callum O'Reilly
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/19052016/appea-national-interest-test-is-poor-policy-2470/