Gas producers’ warnings that the market intervention would stymie investment have moved beyond threats as projects in Queensland and Victoria are put on ice.
Gas producer Senex Energy has pulled about $200 million of purchase orders for its stalled Atlas project in Queensland, sources close to the company say, as evidence firms of investment drying up after last month’s gas market intervention by the Albanese government.
The project, which Credit Suisse expects to cost about $400 million, is scheduled to start supplying gas in 2025 and so will be covered by the mandatory Code of Conduct. That includesthat shocked the gas industry as they envisage low-risk infrastructure-like returns for a commodity business exposed to resource risk.
“Small Australian gas companies like Cooper are among the worst-impacted by the gas cap policy, as it has become almost impossible to find partners or funding for exploration or more marginal developments in the wake of the policy,” he said. “The Bass Strait Joint Venture is now budgeting on a six-monthly basis, recognising that we just have too much uncertainty to include capital for the back half of this year,”Woodside’s plan to ship LNG from Western Australia to Viva Energy’s proposed import terminal in Geelong
Ms O’Neill called for the government to work with industry on policy settings that would encourage investment in needed new supply and that enabled environmental approvals to progress. “We’ve put our billion-dollar expansion on hold pending the outcome of those consultations, and we hope for the certainty required to make a positive investment decision to support the domestic market and our customers.”
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