Curtis Island LNG chiefs agree to work with Fed Government
THE heads of companies exporting liquefied natural gas from Curtis Island yesterday agreed to work with the Federal Government to help fend off gas price hikes or shortages.
Chief executives of Santos, Origin Energy and Shell were among those involved in a gas industry round-table discussion in Canberra with Resources Minister Matt Canavan about the potential for gas export restrictions and forecast price increases and shortages within the next year.
After the meeting Mr Canavan told media he looked forward to an agreement being signed for a deal that would extend a supply guarantee for the domestic market.
He said the peak electricity gas supply guarantee would favour the domestic needs over export, should the nation need more gas during peak demand times.
Mr Canavan said the meeting focused on ways to "deliver better results" for the east coast gas industry.
"We hopefully will not need to trigger export controls," he said.
"But ultimately we need more gas in southern Australia."
The meeting comes amid increased fears of gas price increases during the looming peak summer period.
A report prepared last month by Credit Suisse research analyst Saul Kavonic said he expected domestic gas prices would head into the teens by Christmas.
"The (export controls) trigger shouldn't be pulled but with policy being made on the fly, and uncertainty re-election timing, we can't rule anything out," he said.
Australian Petroleum Production and Exploration Association chief executive Malcolm Roberts, who said it was a "constructive discussion" yesterday, pointed out the industry's delivery on promises to supply more gas to the domestic market.
"The industry well and truly understands its commitment to supporting local manufacturing," he said.