In the blog this morning, we reported on federal Industry Minister Ed Husic’s comments branding gas companies as “tone-deaf” for not offering cheaper prices to the Australian market amid a projected 20 per cent increase in domestic gas prices next year.
Now, former prime minister Malcolm Turnbull has backed calls for export controls on gas to help curb power prices – and for investment in renewable energy as the longer-term solution.
Here’s what he had to say at an Australia Institute event in Sydney earlier today:
“It is crazy that the largest or second-largest exporter of liquefied natural gas is not able to control gas at affordable prices for its own population.
The government should use its power to control gas exports to ensure that there is enough gas available in Australia to keep that price at or around the pre-crisis level.
The long-term solution is very clear – it is renewables plus storage, that is not even an arguable or debatable issue, it’s just a question of how quickly you can roll it out.”
Turnbull also said it was a mistake for the east coast to not implement a domestic gas reserve, similar to that in Western Australia.
It comes after the Australian Competition and Consumer Commission released a report in August warning against allowing exporters to sell all of their uncontracted gas overseas next year.
“In the current environment of high international energy prices (including gas and LNG), tight LNG markets, broader supply chain problems, geopolitical instability, inflation and uncertain demand for gas powered generation domestically, we support the Australian government placing greater focus on energy security,” the report read.
As energy prices heat up, David Crowe reports on a debate brewing along state lines about whether states such as Queensland and Western Australian should ramp up gas supply to NSW and Victoria.
Victorian Premier Daniel Andrews said on Monday that Australians wanted their gas to go to the domestic market first before meeting demand from customers overseas.
NSW Treasurer Matt Kean has also suggested liquefied natural gas from Western Australia could be shipped to NSW and pumped into the eastern gas pipelines.
The South Australian Chamber of Mines and Energy and the Queensland Resources Council are among those criticising proposals they say would see their states pay for the failure of NSW and Victoria in developing their own resources.
With AAP