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Comment on gas agreement signed today

"Today's gas agreement delivers breathing space to pursue medium-term plans to moderate demand and bring on new conventional, unconventional and import supply options as existing resources deplete. If implemented as outlined today, the agreement should help avoid the looming supply crunch we've feared – for now," Australian Industry Group Chief Executive, InnesWillox, said today.

"However, there are two big questions from here. Will we make the most of this opportunity to secure the market for the longer term, including by reforming State gas moratoria? And will prices fall to export parity quickly? Contract prices offered to gas users appear to have fallen from the highs of early 2017, but remain well above historic levels. Energy users will be looking for further falls as more uncontracted gas is offered locally.

"The Government's recognition of the intense energy cost burdens facing industry is welcome, and their ongoing vigilance will remain necessary to guarantee supply and put downward pressure on prices for all energy users," Mr Willox said.

Media enquiries: Tony Melville – 0419 190 347