KPMG Australia welcomes Federal Government’s Australian Gas hub announcement
KPMG Australia welcomes Federal Government’s Australian Gas hub announcement.
As the energy sector continues to transform, we can expect further positive focus on gas supply and integration across supply chains from this year and into 2021 and beyond.
Gas has a critical role in firming energy supply and can serve as a vital bridge as Government and business develop alternatives to traditional energy forms. Specifically, the proposed gas power station and an increase of focus on the Wallumbilla Gas Hub represent a practical long term answer to ensuring stability.
A key determinant of the value of this step will be the input cost of gas and the ability to provide competitively priced gas for the domestic market.
We support the Government’s view that low gas prices also drive down electricity pricing. Indeed, through its announcement today, Government has emphasised the importance of addressing energy pricing – now and for the future.
Furthermore, we believe the current heavy reliance on CSG in QLD and the challenge of supplying the domestic and LNG markets will drive the need to explore other basins to increase supply options.
This further supports the impetus for the development of new gas fields in SE Australia.