Qld industry demands federal gas reservation to ensure its survival

Queensland faces an energy crisis as industry groups demand urgent federal intervention to stop local gas supplies being drained by southern states.

There are calls for Queensland gas to supply Queensland first. (File picture)

The federal government has been told it must establish an east coast gas reservation if Queensland industry is to survive.

With the gas market review set to be released and the government’s response unveiled before Christmas, industry groups have warned that anything short of a reservation and new pricing mechanisms would put Australia’s sovereign manufacturing capability at stake.

Townsville Enterprise, the peak body representing North Queensland, has also warned that the southern states’ restrictive exploration policies are putting the east coast market under further strain and Queensland jobs at risk.

CEO Claudia Brumme said: “This is a national crisis – and Queensland is carrying the burden.

“Soaring gas prices are putting mining, manufacturing and regional businesses under immense pressure.

“We cannot be the nation’s lifeline if we cannot first power our own future.

“Two things must happen: We need an urgent federal review of gas market pricing, and we must guarantee that Queensland gas supplies Queenslanders first.”

The government launched a gas market review in June, and has since heard most stakeholders support the introduction of a domestic reservation policy, supported by incentives for supply and infrastructure investment.

Many stakeholders also expressed the view that the existing reasonable price mechanism has not reduced prices effectively, and some advocated for its removal.

MITEZ, which represents the Mount Isa to Townsville development zone, said Queensland gas should be first and foremost for Queenslanders.

CEO Maria James said: “Fixing energy in the North West isn’t just about economics – it’s about national capability and future growth.

“Domestic reservation is critical to restore balance and competition.”

Manufacturing Australia CEO Ben Eade said there also needed to be support to bring to market new gas supply, transport and storage.

“Gas is extremely important to the viability of Queensland manufacturing,” he said.

“We need policies that guarantee affordable gas supply for Queensland’s manufacturers.”

Originally published as Qld industry demands federal gas reservation to ensure its survival