GEA: Federal Government Should Not Abandon Commitment to LNG as Transport Fuel (Australia)

Shell’s recent decision to halt plans to build eight LNG refuelling stations on the Hume Highway doesn’t mean the Federal Government should abandon its commitment to LNG as a transport fuel. In fact, it reinforces the need for Australia to develop its natural resources to meet our future energy needs, Gas Energy Australia’s CEO and Director, Mike Carmody said.

LNG transport is a key part of the Federal Government’s Policy for Resources and Energy, released in September 2013. The document states that the Coalition, “will work with industry to facilitate the development of logistics systems for LNG as a transport fuel, particularly in the Brisbane, Sydney and Melbourne transport corridors”.

Carmody said Shell’s announcement shouldn’t change that commitment. “Significant LNG refuelling infrastructure already exists in Western Australia, New South Wales, Victoria and Tasmania,” he said. “Westfarmers and BOC already have a total of 17 LNG stations with plans for another eight. The future of LNG in Australia is not solely dependent on Shell.”

This week’s release of the NRMA-commissioned report, Australia’s Liquid Fuel Security Part 2, further highlighted the need for Australia to embrace alternative fuels to improve its fuel security.

According to the report, Australia is now more than 90% dependent on imported liquid fuel and oil for transport, and there’s no plan in place to stop our dependence from increasing.

“The industry recognises the potential for LNG, CNG and LPG as a transport fuel in Australia,” Carmody said.

“In response, Gas Energy Australia, as the industry’s national peak representative body, has formed an LNG Transport Taskforce that’s working on increasing the fuel’s profile, uptake and infrastructure.

“The Federal Government must stay true to its policy and work with us to make it happen.”

Gas Energy Australia is also contributing to research on gas transport fuels improving Australia’s energy security, being led by UNSW, along with the Australian Strategic Policy Institute, CSIRO, Geoscience Australia and the Grattan Institute.

Australia’s Chief Scientist, Ian Chubb AC, and former Howard Government minister, Robert Hill AC, attended a stakeholder roundtable at UNSW last week to discuss preparation of a report on this research which will be presented to the Prime Minister later this year.