The APPEA has called for major parties to agree on the need to exempt the LNG industry in order to remove the competitive burden imposed by the Renewable Energy Target (RET).
The negotiations to secure political support for RET reforms must deliver sensible outcomes for the country’s oil and gas industry, in particular the trade-exposed LNG industry.
Australia’s LNG exporters are among the most trade-exposed of all Australian exporters. They cannot pass increased costs on to consumers and any loss of competitiveness would benefit the country’s international LNG competitors or suppliers of alternative energy sources that emit higher levels of greenhouse gases.
APPEA Acting CEO, Paul Fennelly, explained: “It is crucial that the treatment of LNG ensures that all electricity used in its production is included in the exemption – including electricity in the gas fields that supply the LNG facility, and not just the LNG facility itself. This will require a minor, but important, change to the current definition of ‘LNG production’.”
Adapted from press release by Katie Woodward
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/31032015/ret-burden-on-australian-lng-industry-512/