Santos chief backs PM’s gas plan
Kevin Gallagher has issued a warning on ‘threats of intervention’ as Santos prepares to unlock its stalled Narrabri project.
Scott Morrison must secure a crucial state deal with Queensland to unlock vast amounts of gas to power his long-term energy vision, support new manufacturing jobs and drive the nation’s COVID-19 economic recovery.
With NSW the only state to have secured a $2bn deal with the commonwealth to boost gas supply, Queensland Resources Minister Anthony Lynham on Tuesday accused the Morrison government of “ignoring our calls to invest in gas and electricity infrastructure”.
Energy Minister Angus Taylor told The Australian the Morrison government was committed to unlocking gas supplies in Queensland, allocating $28.3m to develop strategic plans for the North Bowen and Galilee basins.
“We welcome Queensland Labor’s support of unlocking more gas supply and the Morrison government’s gas plan,” Mr Taylor said.
“The government wants to do a deal with all states but NSW set a new gas exploration target, have agreed to maximise the emissions abatement delivered by investments in order to meet Australia’s commitments under the Paris Agreement, and agreement on securing coal resources.”
Dr Lynham said Queensland had been doing the “heavy lifting on gas supply and policy for the past five years”.
“It’s about time the LNP responded to our calls, but where’s Queensland’s billion dollars?”
Mr Taylor, who is also working on securing deals with South Australia, Victoria and the Northern Territory, travelled with the Prime Minister to the Hunter Valley on Tuesday to announce the government’s gas plan.
In a major pre-budget speech, Mr Morrison said “we’ve got to get the gas” and protect 225,000 Australians working in manufacturing firms that rely heavily on gas as a feedstock or fuel source.
“We need to accelerate development of new basins like the Beetaloo in the Northern Territory and Narrabri in NSW, as well as open up more development in existing basins in Queensland where substantial reserves remain untouched,” he said.
“Just as we’ve done with NSW, we want to work closely with the state and territory governments to set targets for new gas supply as part of bilateral energy deals.
“State governments can also do more to facilitate development; for example, through ‘use it or lose it’ requirements on gas licences that encourage producers to bring gas to market as quickly as possible. Not sit on it.”
Santos chief Kevin Gallagher warned private investment in gas infrastructure will not be helped by “continued threats of intervention”, as Santos prepares to unlock its stalled Narrabri project to support the PM’s gas plan.
Ahead of the NSW Independent Planning Commission’s final approval decision on Narrabri later this month, Mr Gallagher backed the federal government’s gas-fired recovery to create jobs.
The Santos boss said the government’s national gas infrastructure plan would help plug the missing pipeline links to connect projects like Narrabri with new basins in Queensland and the NT. “We also know the existing pipeline route to southern markets from Queensland is constrained and long, therefore transport is expensive, so we need more pipeline options to get Queensland gas south by the middle of this decade,” he said.
