September 23, 2020 Read More →

Private sector not ‘rushing’ to invest in Australian gas projects

NS Energy:

The Australian government’s latest gas announcements are “flogging a dead horse”, says an industry analyst.

Prime Minister Scott Morrison, who has been publicly backing a “gas-led recovery” from the coronavirus pandemic, said last week that the fossil fuel will help Australia’s economy “bounce back better and stronger” while supporting its “growing renewable capacity”.

Morrison told the nation’s energy sector that if it can’t come up with a plan to add an extra one gigawatt (GW) of energy in the next seven months, the government will step in and direct the state-owned Snowy Hydro energy company to build a new gas-fired power plant.

But Bruce Robertson, gas analyst at the Institute for Energy Economics and Financial Analysis (IEEFA), claims the private sector “isn’t rushing to invest in gas”, which “follows a trend that has been in place since 2014”.

He added: “Gas usage in the power system has declined 58% since 2014. It’s a massive decline and the reason why gas has slumped in the National Electricity Market is that gas is not competitive.

[James Murray]

 

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