Narrabri Project Approval Expected to Ease Pressure on Domestic on Domestic Gas Supply
Emily Wood | September 30, 2020
The approval of the Narrabri Gas Project is welcomed by the leading advocate for large commercial and industrial energy users in Australia, the Energy Users’ Association of Australia (EUAA), due to the commitment Santos has repeatedly given to use it to supply the domestic market.
“Increasing domestic gas supply is part of a suite of initiatives that we need if we are going to resolve the gas crisis that continues to put many parts of our manufacturing and food processing industries under unnecessary pressure,” said EUAA Chief Executive Officer, Mr Andrew Richards.
“Many large energy users have no commercially viable alternative to gas, so local supply is imperative for their operations. We therefore anticipate Santos will follow through on its commitment to develop this project for the domestic market, increasing supply and competition which should put downward pressure on prices.”
The most recent Gas Statement of Opportunities (GSOO), published in March this year by the Australian Energy Market Operator, highlighted an expected tightening of gas supplies from 2023. This sent shivers down the spines of gas reliant manufacturers who have already seen a doubling and, in some cases trebling, of gas prices in the last 10 years.
“While Australian commercial and industrial users rely on gas to make essential products we all use, increasing supply should not come at the expense of local communities, landowners or local environment. Therefore, a robust monitoring and reporting regime must be ensured, as well as making sure impacted landowners and communities are fairly compensated,” added Mr Richards.
The EUAA is the peak body representing Australian commercial and industrial energy users. Our membership covers a broad cross section of the Australian economy including significant retail, manufacturing, food and materials processing industries. Gas reliant manufacturers create essential items including bricks, steel, packaging, paper and food.
Combined EUAA members employ over 1 million Australians, pay billions in energy bills every year and expect to see all parts of the energy supply chain making their contribution to delivering affordable, reliable and sustainable energy supplies.
– ends –
Media Contact: Emily Wood 0421 042 121