Aus still committed to gas

“Gas is vital to Australia’s energy security and plays a key role in the economy. As Australia’s third largest energy resource, gas will remain a crucial part of our energy mix well into the future,” Pitt told delegates at the Australian Domestic Gas Outlook conference.

“However we need to open up new gas resources to power up our gas-fired recovery. More gas closer to markets is the best recipe for competition and lower gas prices over the long term.”

Pitt noted that the government was pressing ahead with its commitment to unlock new gas supplies in five key basins through the A$28.3-million Strategic Basin Plan, and had finalised the plan for the Northern Territory’s Beetaloo Sub-Basin, while work on the North Bowen and Galilee basins in central Queensland is progressing.

“With the Beetaloo Strategic Basin Plan, we’re seeking to achieve four key outcomes, backed by A$224-million in new funding.

“First, the appraisal of gas resources will be accelerated through a new A$50-million Beetaloo Cooperative Drilling Program. The program will support gas operators to speed up exploration activity worth at least A$200-million before June 30, 2022.

“Second, the Australian government will work closely with the Northern Territory government and local industry to build the necessary infrastructure to support the sub-basin’s development.”

Pitt said that to this end, the federal government was committing over A$173-million to the Northern Territory Gas Industry Roads Upgrades program under the Roads of Strategic Importance initiative. The program was expected to support over 400 jobs.

“Third, more efficient and effective regulatory processes will be delivered, including cutting red tape. Last but not least, we will be working with local communities to ensure they realise the benefits from the sub-basin’s development,” the Minister said.

He noted that the Beetaloo had great potential, and it was estimated that by 2040, the Beetaloo could generate 6 000 jobs and boost economic activity worth up to A$36.8-billion.

Meanwhile, Pitt said that as part of the Gas Fired Recovery Plan, the federal government was looking at how the various reservation policies in place around Australia worked and how best to ensure that gas was available to the domestic market along with supplying its trading partners.

“A major focus of the government’s economic recovery plan is manufacturing, an industry that employs more than 850 000 Australians. Australia’s manufacturing industry relies heavily on gas to operate. Gas provides about 41% of the energy used in manufacturing.

“The relationship between these two industries is likely to grow as the government rolls out a plan to revitalise manufacturing in Australia,” Pitt said.

He noted that the resources sector was well positioned to provide the energy and raw materials a revitalised Australian manufacturing sector would need.