‘Misguided’: Labor gas strategy ignores Asia’s rising demand
Gas producers warn the Albanese government is ignoring major Asian trading partners’ increasing demand for LNG, with a discussion paper that makes reducing demand faster than supply will fall the centrepiece of its strategy during the energy transition.
The paper, released by Resources Minister Madeleine King on Tuesday, names the key objectives of the strategy as supporting the decarbonisation of Australia’s economy; promoting Australia’s energy security and affordability; maintaining trade relationships; and helping trading partners reach net zero.
Australia shipped $92 billion of LNG last financial year.
But it omits the role of Australian gas in beefing up energy security for its Asian allies, leaving some producers dismayed that it underplays a key driver for investment in the sector and will reinforce Japanese gas buyers’ fears that Australia is “quietly quitting” LNG.
“You would have to question the signal this sends to investors, both domestically and internationally, not only in supply but also in energy-intensive industry,” said Ian Davies, CEO of Queensland producer Senex Energy, owned by Hancock Prospecting and Korean steel giant Posco.
“The fact that there is consideration of a future focus for gas is positive in a sense, but the demand destruction focus appears to be misguided in my view.”
Santos CEO Kevin Gallagher said the oil and gas producer would make a “constructive” submission on the paper and pointed to the economic and strategic risks if Australia steps back from the development of its resources.
“The fact is that the Asian region is going to need more gas supply, not less, over the coming decades, for energy security and to reach net zero goals,” Mr Gallagher said.
“Australia has to decide
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