The Queensland Resources Council (QRC) welcomed a conditional agreement between Senex Energy and AGL to supply additional domestic gas supplies to the Australian market, therefore improving national energy security.
QRC CEO Ian Macfarlane commended Senex Energy and stated that the deal reaffirms the importance of the Queensland domestic gas sector to Australia’s energy security.
“By providing up to 42 petajoules to AGL, Senex is ensuring that households can keep the heating on, and industry can keep running across Australia’s eastern seaboard,” Macfarlane explained.
According to Macfarlane, Senex’s additional gas supply will be especially welcomed by smaller manufacturers who do not have access to the wholesale market.
“Boosting supply is the key to lowering energy prices for households and businesses, and the extra domestic gas to be supplied by Senex will contribute to that,” he said.
The QRC noted that the agreement is contingent on resolving regulatory issues and Commonwealth approvals for Senex’s Atlas project expansion on the Western Darling Downs, which was halted in December due to Australian Government intervention in the gas market.
The QRC added that the ACCC and the Australian Energy Market Operator (AMEO) acknowledged the need to enhance household gas supply. According to the organisation, these new investments need policy certainty.
“The sooner the Federal government can clarify their new regulatory frameworks, the sooner this new gas can start to flow to domestic customers,” Macfarlane said.
He stated that given the essential need for additional gas to guarantee continuous energy security as Australia transitions to renewables over the next few decades, the Federal Government must ensure the Atlas extension is completed.
“Queensland’s gas producers are doing the heavy lifting when it comes to providing the domestic energy supply Australia needs, but that can only continue with the right Government policies and support,” he added.
