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Category: Electricity Energy and Utilities / Government and Politics / Federal Government / Environment / Oil and Gas

Gas reservation plan may alleviate energy crisis: Shorten

Friday, 10 Mar 2017 09:07:09 | Alexandra Beech

The energy market operator warned a major gas shortage loomed from next year if action was not taken. (Flickr/ Daniele Civello)

The Federal Opposition has flagged it may force energy companies to reserve gas for domestic use if it regains government.

Energy shortages have sparked debate over recent months, about whether some of the nation's gas reserves should be quarantined for the domestic market.

The Australian Energy Market Operator has warned a major gas shortage looms from next year if swift action is not taken.

Western Australia has long had a domestic gas reservation policy and Premier Colin Barnett has called on the eastern states to follow WA's lead.

Federal Opposition leader Bill Shorten has issued a statement, saying the Government should consider a similar model at a national level.

"We need to look at all viable options to secure our domestic gas supply, otherwise we will lose Australian jobs," he said.

"This includes sensible reservation options rolled out nationally, like what we've seen in Queensland."

Prime Minister Malcolm Turnbull did not rule the option out, when speaking to Adelaide radio station 5AA today.

"We will consider all measures that we need to ensure our energy security is assured."

The Productivity Commission has previously warned that a reservation policy would divert gas supply from the highest prices, and that cost would outweigh any gains from domestic use.

It found the benefits for the domestic market were far from guaranteed and a reservation policy could discourage investment in the longer term.

Such policies could also be difficult for the Government to implement.

Labor has also been pushing for a national interest test to assess proposed gas projects and has called for a national emergency meeting on the gas crisis.

AustraliaPlus


 

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