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Australian chemistry industry welcomes the COAG vision for a competitive Australian gas market - 12 December 2014

The Australian chemistry industry welcomes the COAG Energy Council’s vision for a more informed and competitive gas market, and the reform program announced to support this objective.

“At a time of economic challenge, but also potential for growth, it will be important for policy settings to support the full range of opportunities that gas provides including: energy exports, chemical feedstocks, industrial process energy, as well as commercial and residential energy,” said Peter Bury, Director of Strategy, Innovation and Research at the Plastics and Chemicals Industries Association (PACIA).

"The additions to the Australian Gas Market Development Plan are welcome steps, including the review by the Australian Energy Market Commission (AEMC) to strengthen the structure and competitiveness of the east coast gas market. A transparent, effective and competitive gas market is a vital ingredient for a strong and competitive Australian economy.

“These developments are important for the Australian chemistry industry, Australia’s second largest manufacturing sector, which turns natural gas into jobs and exports. The $40bn industry employs over 60,000 people in high-skilled jobs and supplies inputs to 109 of Australia’s 111 industries. The industry uses natural gas not only as a clean source of energy, but is also unique in transforming gas as a feedstock to locally manufacture a broad range of critical products sold here and overseas.

“Chemistry transforms gas into products such as fertiliser and silage wrap for our crops; innovative packaging to keep our food fresher for longer; and cleaning products for maintaining health and hygiene in our homes and hospitals. These products are vital to growing jobs and the economy, and to help achieve the objectives of the Industry Innovation and Competitiveness Agenda in areas such as Advanced Manufacturing and Food and Agriculture. For example, high quality and securely packaged food for international growth markets is a huge opportunity for Australia.

“Nationally, the chemistry sector transforms 10% of all Australian domestic gas for feedstock use. In some states, such as New South Wales, this can be as high as 25%. The right policy settings also have the potential to attract new, world-scale investment using gas to produce a broader range of high performance materials to further boost jobs, growth and export earnings.

“We look forward to working with the Council, as well as the Commonwealth, State and Territory governments, on implementing the initiatives announced and the opportunities they represent,” said Mr Bury.


Contact:
  Claire Selby, cselby@chemistryaustralia.org.au, 0448 028 876.
Released 12 December 2014

About PACIA

PACIA is the pre-eminent national body representing Australia¹s $40bn chemistry industry, whose businesses directly employ 60,000 people and contribute approximately 11.5% of total Australian manufacturing production. PACIA members comprise a broad range of companies positioned across the entire value chain.  Members include chemicals manufacturers, importers and distributors, logistics and supply chain partners, raw material suppliers, plastics fabricators and compounders, chemicals and plastics recyclers and service providers to the industry.  These businesses range from small family-owned companies and innovative medium-sized enterprises, to leading national and multinational enterprises.


 

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