APPEA says AWU LNG export report “disconnected from economic reality”

Image: APPEA

The Australian Petroleum Production and Exploration Association has hit back at a report by the Australian Workers Union suggesting stricter liquefied natural gas LNG (export) restrictions.

The “Shipping Away Our Competitive Advantage” report released on Monday “confirms that the AWU’s campaign to control gas exports is disconnected from economic reality,” APPEA said in a statement.

“The AWU report’s central claims do not withstand scrutiny,” said APPEA Chief Executive Malcolm Roberts.

According to Roberts, the report ignores the latest data, such as the gas price trends report to the Council of Australian Governments (COAG) and the December 2017 report from the Australian Competition and Consumer Commission (ACCC).

“These reports show that wholesale gas prices began to fall in 2017 across all east coast states. The AWU writes about $22/GJ gas, but the COAG report finds that east coast wholesale prices average $9.19,” he said.

“The AWU also peddles a tired line about Australians paying more for gas than other countries. Again, the facts don’t support this claim. The International Gas Union’s annual global survey of wholesale prices places Australia 26th of 52 countries, with lower prices than major customers Japan, South Korea and China, and its two regional LNG export competitors, Malaysia and Indonesia,” he said.

He went on to say that export controls would only discourage investment in developing new gas supplies.

“The AWU’s protectionist approach would do nothing to expand supply or reduce the cost of new supply. Its flawed premise is that the LNG industry is a risk to domestic supply when, in fact, the industry has underwritten, directly or indirectly, most of the new gas developed over the last decade,” Roberts said.

The massive investment in east coast LNG projects brought the capital and technology to turn coal seam gas from an interesting idea into the main source of gas for local customers in eastern Australia.

Roberts said the union should support the immediate removal of state government bans on natural gas projects rather than demand political intervention to restrict gas exports.

“It is no coincidence that Victoria, which has banned all onshore gas development, now has the most expensive wholesale gas in the market,” he said.

“The ACCC warned last year that southern states would continue to pay a premium for relying on Queensland gas – up to $4GJ in additional transportation costs, Roberts said.

“The obvious solution is for Victoria and New South Wales to develop their own substantial gas resources. More supply – and more suppliers – will put downward pressure on prices,” he added.

Share this article

Follow LNG World News

Events>

<< May 2018 >>
MTWTFSS
30 1 2 3 4 5 6
7 8 9 10 11 12 13
14 15 16 17 18 19 20
21 22 23 24 25 26 27
28 29 30 31 1 2 3

Singapore International Bunkering Conference and Exhibition (SIBCON)

The 20th edition of the Singapore International Bunkering Conference and Exhibition (SIBCON) will be about inspiring change…

read more >

4th Annual Upstream West Africa Summit 2018

In June 2018, Senegal will play host to the No.1 Annual B2B Upstream Oil & Gas event, which will bring together the senior decision makers from across the prolific West Africa region to discuss the trends and challenges currently facing the Oil and Gas industry.

Since the discovery by Tullow Oil in 2007 of the Jubilee Field in Ghana, the Upstream sector has refocused its efforts to explore similar plays around the entire West and North West African coast. These efforts were rewarded with Cairn Energy’s prolific discovery in 2014 followed by Kosmos’ in 2015. The West Africa region has the industry’s spotlight firmly focused on further unlocking the potential of this largely underexplored region.

Companies that will be looking toward further unlocking the deepwater hydrocarbon potential of West Africa include: PETROSEN, BP, Kosmos Energy, Cairn Energy, FAR, Total E&P, Premier Oil, Shell, Tullow Oil along with the Ministries and key solution providers.

 More info

read more >

The 27th World Gas Conference (WGC 2018)

The 27th World Gas Conference (WGC 2018) will be the largest, most timely and most significant global gas conference and exhibition ever held.

read more >

Oil and Gas 2018

The conference will cover a wide range of topics and allow participants to discuss about the new technologies developed in Petroleum…

read more >