QRC CEO Ian Macfarlane
PERTH (miningweekly.com) – The resources sector has warned of higher gas prices in Victoria should the Labor government be re-elected in the state, after Premier Daniel Andrews said that the hydraulic fracturing (fracking) ban currently in place, would be added to the state’s constitution.
"We'll put it beyond the reach of some in politics and their drilling mates, we'll put it beyond their reach to start smashing up our wine country, our dairy country, our tourism assets in order to secure corporate profits," Andrews said, according to 9News.
"These assets are precious and we should do everything we can to safeguard them."
The proposed constitutional ban would not include Victoria’s conventional onshore gas drilling, which is expected to remain under moratorium until 2020.
The Australian Petroleum Production and Exploration Association (Appea) has warned that the Victorian government’s “ongoing pretense” that onshore gas development and farming could not co-exist, came at a time when Victorian gas production continued to fall and when the state was increasingly reliant on gas supply piped from Queensland.
Appea CEO Dr Malcolm Roberts said repeated scientific inquiries and reviews had concluded there were no risks associated with onshore gas development and fracking that could not be managed or eliminated with proper regulation.
“Andrews’ populist push for inner urban votes will increase the price all Victorians pay for gas – and risks sending Victorian manufacturing jobs to Queensland and the Northern Territory; jurisdictions where Labor governments permit the safe, sustainable development of their gas resources,” Roberts said.
“The reality is that Victoria has a gas supply problem and more supply is desperately needed to put downward pressure on prices.”
Roberts said the Australian Competition and Consumer Commission has warned that Victorian’s were already paying a 25% premium for their gas owing to the restrictions imposed by the Andrews government.
“Unless new gas resources in Victoria are developed, families and businesses in the state will pay more than those in states continuing to develop new supply,” Roberts said.
The Queensland Resources Council (QRC) has urged Victorian manufacturers and large gas users to relocate to Queensland if they want access to the gas needed to keep people in their jobs.
QRC CEO Ian Macfarlane said a decision to permanently ban unconventional gas exploration and development meant there would be less investment, fewer jobs and higher gas prices in Victoria, but instead more opportunities in Queensland.
“Victoria is shutting up shop when it comes to gas exploration. That means it’s also shutting down opportunities for manufacturers and other gas users,” Macfarlane said.
“If Victoria doesn’t want the jobs and investment, then Queensland does.
“In complete contrast to what’s happening in Victoria, in Queensland our gas industry is continuing to invest and explore to supply the gas the east coast market needs and to keep people in their jobs.
“Queensland has a long and successful history of balancing the development of the resources industry with the ongoing prosperity of the agricultural industry. That’s translated to more than A$387-million in payments to farmers who co-exist with the gas industry, proving to be an important extra source of income during the drought,” Macfarlane said.
“Not only is Victoria sending a message that it doesn’t want to keep jobs and investment at home, the fact is it will also rely on Queensland gas flowing down South to keep the lights on.”