Queensland Punished Under Federal Gas Reservation Plan

The Queensland Resources Council (QRC) has warned the Federal Government’s proposed Domestic Gas Reservation Scheme will unfairly punish Queensland producers, threaten investment and put future gas supply at risk. 

In a submission to the Federal Government on the draft framework, QRC highlighted Queensland currently supplies around 90 per cent of the gas used by households, manufacturers and industry along Australia’s east coast. 

QRC Chief Executive Officer Janette Hewson said Queensland now risks being penalised for doing the heavy lifting on domestic gas supply. 

“If the Federal Government is serious about strengthening Australia’s energy security, the focus must be on encouraging new supply, not imposing measures that discourage future investment,” Ms Hewson said. 

“Intervention that simply redistributes existing volumes without encouraging new production will not deliver additional supply and will lead to higher prices in the long term.

“Queensland gas producers and communities are being punished because other states chose not to develop their own resources. 

“There is a real risk of domestic oversupply, meaning that domestic gas producers may be then discouraged from investing in future projects, like the Taroom Trough, which are critical to Australia’s long-term energy security.” 

Ms Hewson said QRC supported the objective of a properly designed reservation scheme that delivers reliable and affordable gas supply for Australian households and industry, but warned that the proposed market intervention would not deliver this.

Media Contact:

Matt Dunstan – [email protected]