MARINE & SUBSEA

Don't forget us: MIA

Maritime Industry Australia CEO tells Energy News of an omission the feds can't afford to make.

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This week's Budget allocated $7.6 million in 2017-18 for a series of studies, including the feasibility studies into potential pipelines from the Northern Territory and Western Australia into South Australia and the east coast pipeline grid.
 
That money will also go towards studies looking at improving the Australian Energy Market Operator's National Gas Services Bulletin Board, constraints on increased gas supply on the east coast, and current and potential offshore gas production in South-eastern Australia.
 
Those measures were part of the $86.3 million gas supply package delivered in the wake of increasing concerns over domestic gas supply on Australia's east coast, and followed the introduction of regulatory restrictions on onshore gas development by a number of states and territories. 
 
Both Tasmania and the Northern Territory have instituted bans on fraccing and unconventional gas exploration, while earlier this year Victoria's government introduced a permanent ban on all onshore unconventional gas exploration and development.
 
Law firm Allens said this week that the effectiveness of the Commonwealth's funding package depended on whether state and territory governments will continue to impose regulatory constraints on the exploration and production of onshore gas. 
 
While it remains to be seen how state and territory governments will respond to the Turnbull government's signal to pursue policies that foster the exploration and production of Australia's onshore gas, the MIA said that in all the talk of pipelines, the most obvious immediate solution was also the elephant in the room.
 
The MIA said the economics alone "demand that these studies must consider shipping, along with pipelines, as options for the long distance delivery of gas if they are to produce credible recommendations".
 
"Budget papers don't mention shipping when referring to solving the east coast gas crisis, we're flagging that they can't afford not to consider it," MIA CEO Teresa Lloyd told Energy News.
 
"There have been statements made before the Budget came out talking about the viability of the pipeline from WA, so we're just ensuring shipping doesn't fall off anyone's radar as a means of transporting the gas."
 
"Studying the transfer of gas across the country will demonstrate how vital domestic shipping is in this equation. 
 
"Australia is a huge country and there is no question that shipping is the most efficient form of long haul, bulk transport. LNG has been safely shipped from Australia for over 40 years to destinations around the world."
 
Lloyd said shipping was available immediately, the sea was a "free highway" and the ports already existed to accommodate the ship visits. 
 
"There is no doubt that this study will prove that shipping is the most economic and efficient mode of transport for gas," she said.
 
The MIA has not discussed importation options with AGL Energy, which is evaluating regasification terminals in either South Australia, New South Wales or Victoria to help alleviate the energy crisis.
 
Woodside CEO Peter Coleman, whose company is one of Australia's biggest gas producers, said at his company's AGM last week that it had gas available for east coast processors to purchase at spot prices, provided they could pay commercial rates for supply.
 
"We've already spoken to one or two of the projects on the east coast around gas swaps or cargo swaps, so they're aware of the pricing structure," Coleman said.

 

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