The Queensland Resources Council (QRC) has welcomed a conditional agreement between Senex Energy and AGL to provide new domestic gas supplies to the Australian market that will boost national energy security.
QRC Chief Executive Ian Macfarlane congratulated Senex Energy and said the agreement again confirms the importance of the Queensland domestic gas sector to Australia’s energy security.
“By providing up to 42 petajoules to AGL, Senex is ensuring that households can keep the heating on, and industry can keep running across Australia’s eastern seaboard,” Mr Macfarlane said.
“The extra gas supply provided by Senex will be particularly welcomed by smaller manufacturers that don’t have access to the wholesale market.
“Boosting supply is the key to lowering energy prices for households and businesses, and the extra domestic gas to be supplied by Senex will contribute to that.”
The QRC notes the agreement is conditional on the resolution of regulatory arrangements and Commonwealth approvals of Senex’s Atlas project expansion on the Western Darling Downs, which was put on hold last December following Federal Government intervention in the gas market.
Both the ACCC and Australian Energy Market Operator (AMEO) have identified the need to increase domestic gas supply. These new investments require policy certainty.
“The sooner the Federal government can clarify their new regulatory frameworks, the sooner this new gas can start to flow to domestic customers,” Mr Macfarlane said.
“Given the critical need for more gas to provide ongoing energy security as Australia transitions over coming decades to renewables, the Federal Government needs to do all it can to ensure the Atlas expansion proceeds.
“Queensland’s gas producers are doing the heavy lifting when it comes to providing the domestic energy supply Australia needs, but that can only continue with the right Government policies and support.”
