Attributable to Senex Energy CEO Darren Stevenson
Yesterday’s policy announcement by the Federal Government puts at risk continued investment into domestic gas production and the viability of producers who focus production for Australian customers.
The statement from Ministers Bowen, King and Ayres gives zero certainty for domestic gas producers – an outcome that should concern every Australian business and gas user.
Senex Energy is disappointed the Federal Government has chosen to pursue this course, disregarding the impact it will have on producers who have been part of the solution, providing gas for local manufacturers, heavy industry and electricity generators.
The answer for Australia is to produce more gas, including in NSW where projects face approval delays and Victoria where reserves are in decline. This policy in its current form will only lead to less gas being produced and this policy is neither ‘practical or sensible’ as claimed by Minister Bowen.
The reality is that gas producers not benefiting from higher LNG linked gas prices will have little reason to continue to participate in the domestic market. The result of this will be fewer producers, less competition, and a smaller (not larger) volume of gas available in this country.
This is a terrible outcome for Australia and goes directly against the ACCC’s desire to increase competition in the domestic gas market. The Federal Government is not listening to its own competition expert. Does the ACCC support a policy that will decrease competition in the domestic gas market?
Senex Energy stands ready to hear from the Federal Government how its policy will support domestic focused producers, the very part of Australia’s gas sector that all Australians rightly expect to be supported, not punished by this Government.
Media contact: Nick Park, GM Corporate Affairs – 0408 150 659, [email protected]
Senex Energy has recently submitted to the Gas Market Review.
About Senex Energy:
Following investment of over A$1 billion in our gas producing regions of Queensland, Senex has grown to be a significant producer primarily supplying the east coast domestic market with long-term supply contracts to customers including CSR, Visy, Orora, BlueScope Steel as well as energy retailers including AGL and Engie.
We are proud to provide our product to Australia’s manufacturing industry, supporting thousands of workers who make essential goods – from bricks to plasterboard to glass bottles. Senex now supplies the equivalent of ten percent of the east coast domestic market.
