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Category: Oil and Gas / Electricity Energy and Utilities / Business, Economics and Finance / Federal Government

Gas companies guarantee supply after crisis meeting

Wednesday, 15 Mar 2017 14:14:23 | Ashlynne McGhee

Mr Turnbull said gas companies would increase supply to meet domestic and international demand. (ABC News: Nick Haggerty)

The major east coast gas companies have given the Federal Government a guarantee they will make gas available to meet domestic demands.

The promise emerged after an hour-long crisis meeting in Canberra convened by Prime Minister Malcolm Turnbull, to find solutions to what he termed a looming crisis.

"They have given us a guarantee that gas will be available to meet demand," Mr Turnbull said.

"We are a massive gas exporter and it is untenable for us to be in a position where domestic gas consumers ... cannot have access to affordable gas."

It comes a day after South Australia announced it would spend more than $500 million to build a new gas-fired power plant and Australia's largest battery in an attempt to secure the state's energy supplies.

South Australia has experienced blackouts and load shedding when demand for power outstripped supply.

Nine gas company bosses were summoned to today's meeting in Canberra.

Mr Turnbull said they would increase supply in order to meet domestic and international demand.

He would not be drawn on how the companies would increase supply, but said they would revise up their domestic gas production forecasts.

"That is a matter for them as to how they manage the balance between domestic and export," Mr Turnbull said.

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"But they understand the absolutely critical importance of maintaining their social licence to be doing business in Australia.

"We [Federal Government] have the ability to control exports ... we have that power.

"We want the market to operate, we want their there to be as much freedom in the market to operate, we want there to be as much investment as possible.

"But I stress, we will not shirk from any measures that would be required, if all else fails, to protect Australian businesses, jobs and families."

Two companies, including Asia Pacific LNG, promised to be net domestic gas distributers, meaning they will provide more gas to the Australian market than they will export.

AustraliaPlus


 

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