September 17, 2020 Read More →

Australian government “has backed a loser” in COVID gas plan

Sustainability Matters:

Although the manufacturing industry has thrown its support behind the federal government’s new Gas Recovery Plan, some experts have criticised the move.

Prime Minister Scott Morrison has announced that the government will support a ‘gas-led’ financial recovery from the global COVID-19 pandemic, which will ensure that industry can access the energy it needs in order to remain competitive with the rest of the world.

Bruce Robertson, a gas analyst at the Institute of Energy, Economics and Financial Analysis (IEEFA), agrees that propping up a financially unstable gas industry could prove problematic.

“There is already a massive global over-supply of gas, which is likely to last this decade,” he said.

“Gas industry bankruptcies, poor profitability and spectacular write-downs are the norm, while gas prices have bottomed out globally, if not in Australia.” 

[Amy Steed]

More: Why the government’s gas plan could be ‘on the nose’

Posted in: IEEFA In the News

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