The Australian Petroleum Production and Exploration Association (APPEA) has made a submission to the draft consultation paper for the National Energy Guarantee (the Guarantee).
APPEA’s submission addresses specific aspects of the NEG’s Draft Consultation Paper, focusing on those areas that are important for the upstream oil and gas industry.
APPEA welcomed the release of the consultation paper by the Energy Security Board in February 2018, and said the design of the National Energy Guarantee (NEG) will be an important determinant of future demand for gas-fired power generation.
“Reliable, secure and competitively priced energy is crucial to our everyday lives in Australia. Within this framework, oil and gas plays a key role in meeting many of our energy needs,” the report states.
According to the submission, the design of the Guarantee will be an important determinant of future demand for gas-fired power generation.
“Australia could generate significant additional national economic, environmental and social benefits through greater utilisation of its substantial natural gas resources.”
According to the submission, “Australia could generate significant additional national economic, environmental and social benefits through greater utilisation of its substantial natural gas resources.
“One of the key barriers to gas playing the critical role identified in various reviews, including the Final Review Final Report, are the regulatory barriers that are preventing the development of more gas to flow into the domestic market the entry of more suppliers into that market.
“The COAG Energy Council has consistently supported the need to bring more supply and more suppliers into the market but this collective position is not supported by all state governments. The most extreme case is Victoria, which has prohibited all onshore gas activity. Various regulatory barriers have also prevented the industry moving forward in New South Wales.
“Until all states support a co-operative COAG agenda to remove the regulatory and other barriers to new gas supply, the emissions and reliability objectives of the Guarantee will be compromised.”