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APIA welcomes Jemena plans to expand pipeline infrastructure

“This is a clear example that the pipeline industry is dynamic and is ready to meet gas market challenges,”? APIA Chief Executive Cheryl Cartwright told Gas Today.

“As Paul noted in the interview, the pipeline industry responds in a timely fashion to increases in demand for transmission capacity.”?

Ms Cartwright said the looming diversion of Australia’s gas production to overseas markets and consequent significant domestic price increases presents a challenge to Australia’s domestic gas industry.

“It’s true that increasing gas exports is good for the Australian economy, but we need to ensure that government policies also encourage the sustainability of the local industry, such as the manufacturers who rely on gas for power generation or as a feedstock,”? she said.

“It is critical that government policies help to create new gas supplies for the domestic market, as well as the export market. Policies that focus on “ňústreamlining’ the local gas market are good for just that – improving how the market operates – but such policies don’t address the issue of supply.

“To address the supply challenge, policymakers must encourage gas production. When the gas is available, the transmission pipeline infrastructure is expanded to meet that demand. In fact, upgrades to transmission infrastructure are usually completed well ahead of the development of gas supplies, but those upgrades are not undertaken without contracts to move the gas.

“Australia has a history of providing efficient and safe gas transmission infrastructure.”?

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