Speaking at the Australian Institute of Energy’s 9th Energy in Western Australia Conference in Perth, Alcoa Australia Managing Director Alan Cransberg said that governments must implement policies to ensure a sufficient supply of gas in a competitive domestic market.
“There is no doubt that LNG exports have a wonderful benefit to the Western Australian community, but the community also benefits from local industries, and our local industries need diversity of supply, and to operate in an environment of competitive selling,”? Mr Cransberg said.
Mr Cransberg also highlighted the importance of new players in the market as well as independence in selling arrangements to ensure a secure supply of gas in a competitive market.
However, the Australian Petroleum Production & Exploration Association (APPEA) is concerned that Mr Cransberg’s comments about security in the domestic gas industry represent a push by gas users to have their input costs subsidised by producers.
“Despite suggestions that Western Australia gas security is at risk, there is an abundance of gas in Commonwealth waters off Western Australia – enough for both the export and domestic markets for many decades to come, with major new discoveries being made on a regular basis,”? said APPEA Western Australia Director Tom Baddeley.
“The Gorgon LNG project is planning a domestic plant that would increase Western Australia’s gas supply by 30 per cent,”? he said.
Mr Baddeley said that there are projects being developed for the domestic market right now but that those projects will only proceed if there is sufficient customer demand.
He added “The balance between gas exports and local use is already being achieved without the need of government intervention.”?