‘Power has been handed to the greens, essentially’: Business hits out at rule changes

Changes to rules around gas production have frustrated key businesses with links to the Territory. Read who’s up-in-arms.

Two companies with stakes in the NT’s future economic development have spoken publicly about their concerns at the potential impacts of the commonwealth’s safeguard mechanism.

The bosses of Japanese-based Inpex and Australian-miner Santos spoke in the wake of the federal government securing passage of its safeguard mechanism legislation through the parliament with support from the Greens.

Expected to begin operating from July 1, the safeguard mechanism is designed to ensure Australia’s top 215 emitters reduce greenhouse gas emissions by about 5 per cent a year towards the 2050 net-zero target either through climate mitigation measures or offsets.

Speaking last week in Canberra, Inpex chief executive Takayuki Ueda reminded policy makers that a key to foreign investment is “stable and predictable policy settings” in major energy infrastructure projects.

Inpex CEO Takayuki Ueda. John Feder/The Australian.

“Unfortunately, the investment climate in Australia appears to be deteriorating,” Mr Ueda said. “In Japan we say ‘don’t cheat at rock, paper, scissors’. This translates to ‘Don’t move the goal posts after the game has started’.

“The energy policy environment in Australia today appears to be driven almost by ideology and domestic concerns. This gives us great cause for concern.

“While we still don’t have sufficient detail, the likely consequences of the new policies being rushed into legislation are considerable.

Santos Chief executive Kevin Gallagher speaks during the Santos AGM at the Adelaide Convention Centre. Picture Mark Brake

“Australia is competing for global investment and the changes we are seeing to Australian policy settings will choke investment and strangle the expansion of LNG projects in this country.

“On the geopolitical front, Australia’s ’quiet quitting’ of the LNG business has potentially very sinister consequences.

“The question of who will replace Australian supply into the market is front and centre.

“Alarmingly, the inconvenient truth is most likely that Russia, China and Iran fill the void.”

Santos chief executive Kevin Gallagher accused the government and opposition of handing power to the Greens in its negotiations over the safeguard mechanism.

Drilling on Santos’s signature $5.8bn Barossa gas project in the Timor Sea is on hold as the company implements a court order to properly consult with Tiwi Island traditional owners over a gas pipeline as part of the project.

Anti-gas protesters in Melbouurne. (Photo by Tamati Smith/Getty Images)

“Power has been handed to the Greens essentially and they just want to shut everything down,” Mr Gallagher said.

“The sovereign risk overhang we have today is scaring investors away from Australia.

“We can’t just be turning things off at short notice and changing the rules.”

He said despite the wishes of green activists, gas would remain a key part of the world’s energy sources for years to come.

“All the gas at Barossa has been sold to Japan for the next 50 years,” he said.

Meanwhile, Santos has announced dates for the second round of community consultation with Tiwi Islanders on the Barossa project.

During February’s consultation round, the company focused on speaking with residents in each community.

This month, the focus will be on individual clan groups. Consultations will take place during the week beginning Monday April 24.