PERTH (miningweekly.com) – Federal Energy and Emissions Minister Angus Taylor has bashed research by the Gattan Institute, which questioned a gas-led economic recovery.
The Gattan Institute argued that despite government promises and promotions, the east coast of Australia was faced with "inexorably more expensive gas", and arguing that the benefits of increased gas supply through the development of domestic assets was overstated.
Speaking to Sky News, Taylor was derisive of the research, saying “you could drive a truck through this report”.
“Gas prices are less than half of what they were about a year or 18 months ago. They’re the facts. If you look at international prices, if you look at the international price in the US, which is now the price discovery mechanism for gas all around the world, the 2030 price comes up a little from where we are today, but is still way below where it was a year or 18 months ago.
“So, this is deeply flawed analysis. It also misunderstands the importance of gas for manufacturing - 850 000 people in Australia work in manufacturing. They ignore critical industries that use gas like bricks and cement. They also ignore the role that gas plays in the electricity sector, which is enormously important because we know the gas price now largely drives the electricity price,” the Minister said.
Taylor said that there were a range of different gas options being considered, with the Surat and Bowen basins offering "enormous potential".
“The Beetaloo looks to be some of the lowest cost gas when you take into account the liquids that are expected to be produced from it. It’ll be some of the lowest cost gas in the world, there’s no question about that. It looks very much like the gas that has been growing rapidly in the US, and driving growth in manufacturing in the US. So, look, this is, as I say, these propositions are put forward by a group who clearly just want to see the end of the gas industry.”