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PACIA welcomes the AEMC Gas Market Report - 01 August 2016

PACIA welcomes the Australian Energy Market Council (AEMC) Stage 2 Final Report that highlights the need for greater transparency, consistency and access to domestic gas supply, in Australia’s domestic gas market.

PACIA CEO Samantha Read said, “We have been calling for a gas market that is deep in capacity, liquid in supply, transparent, informed, competitive, and with adequate price discovery. The findings confirm the concerns of commercial and industrial users of gas, and we support the proposed Roadmap of Reforms to drive change.

“The Report also identifies significant upside for Australia’s economy if the reforms are implemented in full, with independent modelling showing a potential increase to Australia’s GDP by $8.7billion in net present value terms by 2040.

“The GDP growth is predicted through improved viability and competitiveness of Australia’s advanced manufacturers, which add value to gas and enable downstream supply chains. A better functioning gas market is good news for Australian manufacturers, and good news for the economy.

“Gas is not just about energy. The Australian chemistry industry adds value to 10% of all Australian domestic gas for its molecular properties to create, through chemistry, a huge range of materials and products. This is what we call gas as a feedstock.

“The industry transforms the components of gas to make fertilisers to increase agricultural yields, piping to securely supply water and gas to industrial and residential users, and packaging to keep food safe and fresher for longer.

“This is the kind of higher-value-adding advanced manufacturing that will drive the next phase of development, innovation and growth in Australia, in a more competitive global marketplace.

“The AEMC Report together with the ACCC’s April 2016 Report into the East Coast Gas Market, present a Roadmap to open up opportunities for new investment. This will help Australia take full advantage of all the economic opportunities that Australia’s gas can offer, including gas used for export of liquefied natural gas (LNG), domestic industrial feedstocks and process energy, and commercial and residential energy.

“It is essential that these recommendations be backed by action. The industry appreciates the strategic and coordinated approach taken by the COAG Energy Council to set a vision and a development plan for the Australian gas market. There is now the evidence and opportunity to take steps that address the current market failures.

“Now is also the time for State Governments to reconsider current moratoria on gas development that are constraining gas supply. Reform is one part of the picture, there also needs to be more supply coming into the market,” said Ms Read.

 

Media contacts:
Krista Imberger – kimberger@chemistryaustralia.org.au or 0439 318 290
Claire Selby – cselby@chemistryaustralia.org.au or 0448 028 876
 

PACIA is the national voice for the strategically significant $45 billion Australian chemistry industry, one of the largest manufacturing sectors in the country. The industry employs more than 64,000 people and contributes more than $11.5 billion to GDP in industry value add. Ranging in size from small family-owned businesses to national and multi-national enterprises, PACIA 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.

 

 

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