Gas Reservation Scheme punishes Queensland producers

The Queensland Resources Council (QRC) says the announcement by the Federal Government to force gas exporters to supply 20 per cent of volumes to a domestic reservation scheme risks Queensland’s reputation as a reliable trading partner and impacts confidence and investment, along with future gas supply.

QRC Chief Executive Officer Janette Hewson said Queensland is already doing the heavy lifting to support gas supply to homes and industry along Australia’s east coast.

“The 20 per cent reservation scheme threatens Queensland’s successful gas industry, which has generated significant economic benefits for all Queenslanders and supports thousands of local jobs, particularly in the regions,” Ms Hewson said.

“A domestic reservation scheme could work if it is carefully designed and encourages further investment in the industry to boost local supply.

“By imposing a blanket 20 per cent there is a real risk for domestic oversupply which could have unintended consequences for local gas producers.

“Queensland gas producers and communities are now being punished because southern states spent years not developing their own resources.

“This level of intervention by the Federal Government risks undermining what has been a reliable gas system and threatens investment, regional jobs and the significant royalties paid by gas companies.

Media Contact:

Matt Dunstan – [email protected]