RE: Commission urges massive gas-led economic recovery supported by taxpayers21 May 2020 08:47
Blue Energy said it had drawn the attention of the two governments to Queensland’s Northern Bowen Basin as the largest onshore, discovered gas resource — and one that remains undeveloped and not connected to the east coast domestic gas market.
Blue Energy said the AEMO report did not take into consideration what could happen with previous commitments to develop gas projects following the recent collapse in oil prices.
These projects, termed by AEMO “anticipated developments”, underpin gas supply to the east coast of Australia from 2023.
“Failure of any of these anticipated developments to eventuate will leave the southern states in a precarious energy position sooner rather than the expected 2023 forecast,” the report noted.
Bowen Basin gas ready to go
Blue Energy managing director John Phillips, commenting on the publication of the report’s recommendations, told Small Caps that the Bowen Basin was the most shovel-ready, lowest capital cost new gas project on the east coast Australia.
The basin has a huge gas reserve but, apart from supplying Townsville, it lacks a physical pipeline connection into the larger southern market area where the bulk of manufacturing is short of gas.
“There is enough gas in the North Bowen Basin to meet East Coast demand for 30 years at the current rate of use,” said Mr Phillips.
He argues that large-scale gas development would provide additional gas supply and provide more capacity for fast start gas fired generation to fill the gap as as the older coal-fired power station fleet is retired of.
“That’s a better environmental outcome,” he added.
And here’s another point: gas will pay royalties into state government coffers while renewable energy is not subject to royalty payments.
Mr Phillips said more gas supply will lower gas prices and would be a great impetus in rebuilding Australia’s manufacturing sector.
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