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Natural gas critical to developing advanced manufacturing in Victoria - 28 January 2015

The CEO of Australia's Plastics and Chemicals Industries Association (PACIA), Ms Samantha Read, has highlighted the critical importance of natural gas through Victoria’s supply chains, as the Victorian Government today indicated there would be a further review into the State’s gas industry.

“We are calling on the Victorian Government to ensure any further inquiry is swift and efficient, building on the significant body of work already completed. We are pleased that the Government is committed to taking a science-based approach,” said Ms Read.

“Victoria is Australia’s manufacturing heartland. It depends on a reliable supply of domestic natural gas. We need to be developing the next generation of Victorian manufacturing jobs without delay.

“There is significant opportunity for an advanced manufacturing sector, enabled by Australian gas and chemistry, to meet unprecedented global and domestic growth. These are exactly the types of opportunities that will drive a new phase of development in Victoria. But this won’t happen without the certainty required for investment.

“The Australian chemistry industry is the nation’s second largest manufacturing sector employing more than 60,000 workers nationally, including more than 20,000 in Victoria. The industry is unique in using natural gas not only as a clean source of energy, but also as an essential and non-substitutable feedstock for chemicals and plastics manufacturing.

“The Australian chemistry industry contributes significant value-add to 10% of all Australian domestic gas, using it as an essential ingredient in the chemistry required to make a whole range of critical 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.

“A recent report by Deloitte Access Economics reveals the potential for severe side effects resulting from gas supply tightness and cost increases. The Report projects $118bn in lost output by 2021 to the Australian manufacturing sector alone, based on the current gas price projections and other factors.

“There will be significant consequences throughout Victoria’s core industries if we don't get this right. It is critical that we realise our energy advantage.

“Domestic gas supply is a national issue that requires coordinated leadership from State, Territory and Federal Governments. We look forward to continuing to work with all jurisdictions to address the urgent challenges in gas market transformation,” Ms Read said.

Download the DAE report: ‘Gas Market Transformations - Economic Consequences for the Manufacturing Sector’


Contact:
  Claire Selby, cselby@chemistryaustralia.org.au, 0448 028 876.
Released 28 January 2015

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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