RE: Ex-Dow CEO interview23 May 2019 08:32
The Australian Competition & ConsumerCommission and major commercial users including Qenos and Brickworks havesounded the alarm on soaring energy costs. Orica is weighing the future of itsNewcastle ammonia plant with up to 300 jobs at risk as the high price of gasrenders its Kooragang Island facility uncompetitive, while Incitec Pivot thisweek called for the federal government to consider a new approach to energypolicy, with its Gibson Island fertiliser plant in danger of shutting.
Mr Liveris said creating a more effectivedomestic gas market in Australia would help to “decarbonize our economy”.
“If we can build a competitive local gasinfrastructure, break the oligopolies and get prices to the power stationsdown, we could put in gas turbines to replace the coal-fired turbines andretire the coal fleet and you would get the best of both worlds,” he said.
“You would get lower electricity prices, lowergas prices, you would get gas for manufacturing and get more jobs and reduceemissions. I would put a lot of effort into putting in the right pipelineinfrastructure.” Mr Liveris said he knew of major companies offshore whichwould be able to build large pipelines to transfer gas across the country ifpolicies were suitable.
He was speaking to The Australian by phone fromJapan, where he has been advising on the operation of the B20 group of businessleaders who will meet around the time of the G20 leaders meeting in Osaka nextmonth.
A former chairman of the President’s AmericanManufacturing Committee, he is also a director of IBM, Saudi oil giant Aramco,engineering company WorleyParsons and Brisbane-based battery technology companyNovonix. The ex-Dow boss is no longer advocating the federal governmentintroduce a domestic gas reservation policy that would seek to restrict or bangas exports because there had been a big increase in gas production around theworld which was holding down world prices.
“Let’s leave the current exporters to do whatthey do,” he said. “Gas is being discovered everywhere — in Russia, SaudiArabia, the US and Argentina. The wave of oversupply has made the market workinternationally.
“If you let the market work by having moresupply, the price will remedy itself.” Mr Liveris said he hoped the re-electionof the Morrison government would mean that “Australia is in for a period ofstability”.
“You really do need stable leadership andstable government. “Business people (around the world) are screaming forconsistency in policy on a variety of different areas including those whichAustralia has been fighting about.” Mr Liveris said energy in Australiarequired government intervention. “The energy market in Australia is notworking,” he said. “Demand is being killed by high prices.
“I hope now we have a more stable Morrisongovernment it can look at energy policy as a priority.”Mr Liveris said hethought education should be another top priority of the Morrison government.
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