The Australian Pipelines and Gas Association (APGA) welcomes major new pipeline investment saying the midstream sector is delivering its part of the solution to projected east coast gas shortfalls, and governments now have to play their part to provide regulatory certainty by shelving proposed emergency powers.
APA Group's final investment decision on Stage 3A of its East Coast Gas Grid Expansion Plan, and its commitment to long lead item procurement for the Stage 3B Bulloo Interlink Pipeline, demonstrates that private capital will respond to genuine market need when policy settings provide confidence.
"These are commercially driven decisions responding to identifiable market need, and they are exactly what the Gas Market Review was designed to encourage," APGA chief executive Steve Davies said.
Mr Davies said that a range of supply solutions may have a role to play in ensuring energy security for some markets. The priority must be ensuring the policy framework supports all forms of investment.
The proposed AEMO powers risk doing the opposite. By introducing a mechanism that cuts across the Gas Market Review process, the proposal would distort commercial investment signals at precisely the moment private capital is beginning to respond.
"Pipeline infrastructure requires multi-decade investment horizons. When policy settings keep shifting, investors either delay decisions or price in higher risk. In both cases, costs flow through to consumers."
Mr Davies said the announcements today demonstrate that the infrastructure side of the east coast supply challenge is being addressed. What is now needed is regulatory stability, not further intervention.
Shelving the proposed AEMO powers would allow the Gas Market Review to deliver as intended, preserve the investment confidence these announcements represent, and support the market-led outcomes that deliver affordable, reliable energy for Australian households and businesses.
About
The Australian Pipelines and Gas Association (APGA) represents the owners, operators, designers, constructors, and service providers of Australia’s pipeline infrastructure, connecting natural and renewable gas production to demand centres in cities and other locations across Australia. Our members offer a wide range of services to gas users, retailers and producers and ensure the safe and reliable delivery of 28 per cent of the end-use energy consumed in Australia.
Contact
For further information or the opportunity to engage with Mr Steve Davies please contact:
Paul Purcell
Mountain Ash Advisory
paul@mountainashadvisory.com.au
0422 247 750