The Australian Petroleum Production & Exploration Association (APPEA) are calling for increased gas supply and gas suppliers to mitigate supply shortfall expected in 2019.
APPEA’s chief executive Malcolm Roberts, said that the possible government bans on further gas supply development will have impacts on customers, as “stifling supply can only lead to higher prices.”
There is no shortage of gas which can be developed to supply all of the local in export customers, Roberts said, adding that calls for the government to force the producers to end their contracts would kill investments.
The country’s gas exploration is at the lowest level since 2005, Roberts said quoting an ABS report. Further restricting gas exploration projects would significantly increase the prices for gas customers.
Roberts said it was ironic the AWU’s call for intervention to renegotiate export contracts came on the same day that domestically‑focused Cooper Energy and the APA Group announced a $605 million investment in developing the Sole Project to supply east coast gas market.