The ALP’s tax rebate plan would pay GTL plant operators a share of their investment to encourage them to process gas for the dometic market rather than sending LNG or CNG overseas.

Central Petroleum, which is currently undertaking an initial public offer to raise funds to target oil and gas in central Australia, has plans to develop GTL in central Australia.

This would take advantage of the recently completed rail link from Alice Springs to Darwin to enable zero sulphur diesel, jet fuel and naphtha to be transported to either Port Darwin or Adelaide.

Sustained oil prices over US$30 per barrel and the completion of the north-south rail link through Darwin that previously ‘stranded’ gas reserves in central Australia now have real potential to be monetised via GTL technology, according to Central managing director John Heugh.

“The basic technology has been around since the 1930s in one form or another but real advances have been made in the last decade or two in terms of the smaller plant outputs and gas reserve requirements to reach critical economic thresholds,” he said.

“Previous operators of the acreage that Central will control did not have access to this advanced technology or the means to economically transport product to market from central Australia. This has all changed and opened up the potential for value-adding to gas prior to transport to market.

“Increasing self sufficiency in diesel, jet fuel and naphtha products makes strategic sense not just for our company but for Australia.”