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Gas inquiry recognises dire situation facing gas users

"The Federal Government's announcement of an inquiry into gas reservation is an acknowledgement of the dire situation facing industrial gas users in particular and the need for a variety of actions to address supply and cost issues," Ai Group Chief Executive, Innes Willox said today.

"The gas price situation in Eastern Australia is serious and impacting industry competitiveness and electricity prices, and further action is necessary and urgent.

"Reservation is worth investigation given the success of WA and to some extent in Queensland. Such a policy would likely be prospective in nature and take years to deliver results. It would not replace the need for more immediate measures particularly given the vulnerability of gas intensive industry.

"Supply is critical, including development of and access to more local resources and the potential for pipelines and import terminals to bring new resources to market. But the demand side is also central. For instance, supporting gas users to improve efficiency or switch fuels can improve their resilience and take pressure off the wider gas market.

"It is positive that the government has committed to consulting widely and we look forward to engaging in those discussions," Mr Willox said.


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