Australia: Energy Minister Says Gas Reservation Policy Not the Answer

The Minister for Resources and Energy, Gary Gray, has welcomed the recent announcement by the Northern Territory Government not to adopt a gas reservation policy.

“I am pleased to see the Northern Territory Government taking a common sense approach to this issue,” Mr Gray said.

“As the Australian Government has repeatedly stated, gas reservation policies do not help to bring a greater supply of gas into the market as they act as a disincentive to investment.”

The Government’s Energy White Paper, released late last year, noted that reservation policies remain an option for governments but should be used as a last resort and only where there is clear evidence of market failure.

This is not the case in Australia, which currently has a developing market in need of greater transparency and flexibility to supply gas where it is required.

“The fact is Australia has abundant gas resources – so the challenge is getting gas into the market,” Mr Gray said.

“The twin challenges of bringing on gas and improving the efficiency of gas markets are front and centre of the agenda of the Standing Council on Energy and Resources (SCER).

“I’m look forward to meeting with my Ministerial counterparts next month and continuing SCER’s important work on the Gas Market Development Plan.”

The plan includes the new voluntary upstream Gas Supply Hub; improvements to the reporting of unconventional gas production data; the Multiple Land Use Framework (MLUF); and the National Harmonised Regulatory Framework for Coal Seam Gas.

This work will help to address the concerns expressed by both industry and communities to ensure Australians are able to access reliable, adequate and affordable gas supplies.

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LNG World News Staff, April 22, 2013; Image: garygray.com.au