August 27, 2020 Read More →

Australian opens up 42 offshore areas in effort to boost gas industry

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Australia has opened up 42 areas in Commonwealth waters off Western Australia, Victoria, Northern Territory and the Territory of Ashmore and Cartier Islands to help stimulate investment in the gas industry.

About 100,000sqkm in the Bonaparte, Browse, Northern Carnarvon, Otway and Gippsland basins are under offer in the 2020 Offshore Petroleum Exploration Acreage Release.

Federal Minister for Resources, Water and Northern Australia Keith Pitt says the annual acreage release is a key part of the government’s strategy to promote and encourage investment in petroleum exploration for the benefit of the Australian economy 

The proposal for a gas-led recovery has been criticised by pro-renewables think tank the Institute for Energy Economics and Financial Analysis (IEEFA).

It said that Australia could not afford to subsidise the gas industry when it gave back so little in return.

IEEFA analyst Bruce Robertson noted that there was already a massive global over-supply of gas while the lack of government regulation had meant that gas companies had been able to set the price for gas on the east coast of Australia.

“We don’t need new gas projects as proposed by the NCC,” he said.

“We need the supply we already have to be made available to Australian consumers at reasonable prices and regulated by government via a domestic reservation policy which reserves gas for local consumers, like what they have on the west coast of Australia.

“The government does not need to underwrite volumes. It exposes the taxpayer to unacceptable risks — risks that should be borne by the private sector.” 

[Bevis Yeo]

More: New tenements on offer to promote investment in Australian oil and gas industry

Posted in: IEEFA In the News

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