Emily Wood | June 13, 2018
AGL’S announcement to commit $37m to further its Crib Point LNG import terminal has been welcomed by the Energy Users Association of Australia (EUAA) as positive signal for energy users that rely on gas for manufacturing.
“While gas prices and availability have marginally improved this year, it continues to be a high-priced fuel putting manufacturers who rely on it under huge pressure,” said EUAA Chief Executive Officer, Mr Andrew Richards
“AGL’s Crib Point LNG import terminal will add critical supply to the southern gas market and is a positive sign for large users who are weighing up their future in Australia.”
A number of businesses operating in Australia rely solely on gas to create their products and have no option to use another fuel source. These businesses are manufacturers of essential everyday products that include health care products, bricks, packaging, plastics and fertilisers.
Access to natural gas supplies will also be important to fuel the flexible energy generation needed to firm up renewable energy and ensure compliance under the proposed Reliability Guarantee being put forward by the Energy Security Board.
“While Australian gas prices are now linked to international markets we welcome AGL’s announcement to ease supply pressure and look forward to further progress being made on this project,” added Mr Richards.
“In the absence of any other options for increased gas availability and competition in gas pipeline transportation, LNG importation seems to be the best available option right now.”
EUAA member companies include significant retail, mining, manufacturing, materials and food processing industries that produce and manufacture essential items used by the Australian community every day.
Media Contact: Emily Wood 0421 042 121