APPEA: Industry welcomes budget initiatives By Martin Kovacs, 10 May 2017

The Australian Petroleum Production & Exploration Association (APPEA) has stated that the oil and gas industry welcomes Commonwealth budget initiatives supporting delivery of new gas supply into the east coast market.

APPEA Chief Executive Dr Malcolm Roberts stated that APPEA welcomes the Commonwealth’s new $28.7 MM east coast gas development program.

“The only genuine, lasting solution to the tight east coast gas market is more supply,” Roberts commented. “More supply will boost liquidity and competition in the market, putting downward pressure on prices. We have ample resources in Australia to supply domestic and export markets – we should be using those resources.”

Roberts stated that APPEA also welcomes $19.6 MM allocated to the Gas Market Reform Group, accelerating “reforms agreed by the COAG Energy Council to improve gas market efficiency and transparency”, along with “the funding to the Australian Competition and Consumer Commission for regular market monitoring and reporting on the east coast gas market”.

“Progressing these reforms and improving market transparency is vital,” Roberts commented. “APPEA supports monitoring of the market across the industry value chain. We are keen to see the release of the first ACCC report later this year.

“It is also pleasing to see the government promoting the vital role of independent science in the loud but often badly informed debate about the onshore gas industry with $30.4 MM in new funding to support bioregional assessments.”

Roberts additionally stated that “APPEA supports rigorous cost-benefit studies for new pipeline infrastructure”.

“APPEA notes that the Commonwealth will fund a study of the potential national interest benefits of new pipelines from the Northern Territory and Western Australia to Moomba,” he stated.

“There is exciting shale gas potential in the Northern Territory which could be tapped to supply the east coast market. APPEA welcomes the Northern Gas Pipeline which will soon connect Tennant Creek and Mt Isa. Provided the business cases for new infrastructure stack up, APPEA welcomes more interconnection and further steps towards a larger, more integrated national market.”