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PERTH (miningweekly.com) – The federal government is considering a prospective national gas reservation scheme as part of its plan to make energy affordable for families and businesses and to support jobs as part of Australia’s recovery from the Covid-19 recession.
A gas reservation issues paper has been released for public consultation and the government is seeking information and feedback.
Minister for Resources, Water and Northern Australia Keith Pitt said the paper would explore possible costs and benefits of a gas reservation scheme and strongly encouraged stakeholders to make a submission.
“The government will consider issues including certainty of supply and investment confidence in our oil and gas industry in assessing options for a national gas reservation scheme,” Pitt said.
“To do this, we will consult extensively with stakeholders – including states, territories, industry and gas users – before a final decision is made.”
The Minister added that other actions the government had implemented to date had assisted in lowering gas prices and ensuring gas supply.
“Both the Australian Energy Market Operator and the Australian Competition and Consumer Commission have found the Australian Domestic Gas Security Mechanism (ADGSM) to be effective in this regard with supply assured to 2021, which is why I have not triggered the ADGSM,” Pitt said.
“However, I want to ensure the continued effectiveness of the ADGSM. The Australian Competition and Consumer Commission Netback Price will also be a reference point for what is a fair price for domestic gas.”
Minister for Energy and Emissions Reduction Angus Taylor noted the importance of securing domestic supply for driving down prices.
“It is essential we consider all of the policy options available that could help to ensure Australian gas is working for all Australians,” Taylor said.
“Gas prices and security affects the productivity and competitiveness of Australian industry. We will work with industry and consider all feedback to ensure both gas producers and users can thrive.”
Consultation on a new heads of agreement will start shortly, and submissions on the reservation policy paper close on 27 November 2020.