ACCC backs calls for removal of moratoria and other impediments to natural gas development
April 22nd, 2016
The ACCC has backed calls for the States and Territories to remove impediments to development of natural gas resources.
ACCC chairman Rod Sims has predicted supply problems if new natural gas sources are not brought into the domestic market, and Mr Sims has scotched activist claims that reservation policies are needed in order to ‘protect’ gas consumers.
Moratoria and other market impediments were actually having an upward pressure on prices and should be removed from the domestic scene in Australia.
This is the second high-level and direct message to governments in Victoria and the NT in less than a fortnight.
The first came from Federal Resources Minister Josh Frydenberg, speaking at the global LNG18 conference in Perth.
Mr Frydenberg will now take the pro-development message to a specially-convened meeting of the Council of Australian Government ministers’ meeting.
As we have said before, there is no good reason for Victoria to continue to stifle development of the industry in Victoria. Even the State’s own Environment Department has said there is little to fear from properly regulated development.
Judging by his response to calls for a specific NT referendum on use of hydraulic fracturing in the Territory, the Chief Minister, Mr Giles, seems to have accepted the evidence that the engineering process (used for 50 years in South Australia) is not the threat activists paint it to be.
To read the full report by the ACCC into the east coast gas supply read here.